Ciena Corporation · NYSE:CIEN

Ciena — Q2 FY2022 Earnings Presentation

23 slides from Ciena's earnings presentation, Jun 2, 2022

  1. Slide 1: Earnings Presentation, Period ended April 30, 2022

    Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Ciena Corporation Period ended April 30, 2022 June 2, 2022 Earnings Presentation

  2. Slide 2: Forward-looking statements and non-GAAP measures

    2Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Forward-looking statements and non-GAAP measures Information in this presentation and related comments of presenters contain a number of forward-looking statements. These statements are based on current expectations,

  3. Slide 3: Table of Contents

    3Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Table of Contents 1 Overview & recent achievements 2 Market context and Ciena's portfolio 3 Recent financial performance 4 Appendix

  4. Slide 4: Overview & recent achievements

    4Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Overview & recent achievements

  5. Slide 5: Ciena is an industry-leading global networking systems, services, and software company

    5Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Ciena is an industry-leading global networking systems, services, and software company ….. Leading technology and innovation … with a strong track record of creating shareholder value Diversification and scale of busi

  6. Slide 6: Recent key achievements

    6Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Recent key achievements • Delivering industry-leading coherent technology including 107GBd WaveLogic™ 5 Extreme (WL5e) and the widest range of interoperable and performance pluggables ▪ Blue Planet revenue has grown a

  7. Slide 7: Market context and our portfolio

    7Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Market context and our portfolio

  8. Slide 8: Six mega trends and the innovations that will enable them

    8Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Six mega trends and the innovations that will enable them Fiber Deep (Cable/MSO) Cloud Data Center Mobility & 5G IoT & Connected Objects Living a Hybrid Life

  9. Slide 9: Our vision for a new network end-state

    9Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Technical and professional services that help customers build, operate, and optimize their networks Predictive analytics and machine learning based on both big data and small data Dynamic pool of virtual and physical

  10. Slide 10: Our market leadership

    10Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Our market leadership Optical Transport Report, 1Q22Optical Networking Report, 4Q21 Data Center Interconnect Market Share Report, 4Q21 Service Provider Switching & Routing Report, 4Q21 Transport Hardware Report, 1Q22

  11. Slide 11: Q2 FY2022 results

    11Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Q2 FY 2022 results

  12. Slide 12: Q2 FY2022 key highlights

    12Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Q2 FY 2022 key highlights ▪ Non-telco represented 44% of total revenue • Direct web-scale increased 7% YoY and represents 22% of total revenue • MSO increased 13% YoY and represents 9% of total revenue ▪ Routing and

  13. Slide 13: Financial comparisons (year-over-year)

    13Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Q2 FY 2022comparisons (year-over-year) * A reconciliation of these non-GAAP measures to our GAAP results is included in the appendix to this presentation. Revenue (in millions) Adj. Gross Margin* Adj. Operating Margi

  14. Slide 14: Comparative operating metrics

    14Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Q2 FY 2022 comparative operating metrics Q2 FY 2022 Q2 FY 2021 Cash and Investments $1.6B $1.4B Cash Flow from Operations $106M $225M DSO 87 86 Inventory Turns 3.4 3.4 Gross Leverage 1.71x 1.10x Net Cash $497M $696M

  15. Slide 15: Comparative financial highlights

    15Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Q2 FY 2022 comparative financial highlights * A reconciliation of these non-GAAP measures to our GAAP results is included in the press release for the relative period. Q2 FY 2022 Q2 FY 2021 Revenue $949.2M $833.9M Ad

  16. Slide 16: Revenue by segment

    16Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Revenue by segment (Amounts in millions) Q2 FY 2022 Q2 FY 2021 Revenue %** Revenue %** Networking Platforms Converged Packet Optical $625.3 65.8 $573.7 68.8 Routing and Switching 109.2 11.5 63.6 7.6 Total Networking

  17. Slide 17: Continued revenue strength derived from non-telco customers

    17Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Continued revenue strength derived from non-telco customers

  18. Slide 18: Revenue by geographic region

    18Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Revenue by geographic region 11% 12% 11% 11% 19% 16% 15% 70% 70% 72% 70% 74% 19% 18% 12%

  19. Slide 19: Appendix

    19Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Q2 FY 2022 appendix

  20. Slide 20: Gross Profit Reconciliation

    20Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Q2 FY 2022 Q1 FY 2022 Q4 FY 2021 Q3 FY 2021 Q2 FY 2021 GAAP gross profit $401,781 $384,187 $477,119 $474,550 $412,419 Share-based compensation-products 1,058 900 920 1,037 498 Share-based compensation-services 1,943

  21. Slide 21: Operating expense reconciliation

    21Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Q2 FY 2022 Q1 FY 2022 Q4 FY 2021 Q3 FY 2021 Q2 FY 2021 GAAP operating expense $343,352 $324,183 $339,710 $326,027 $278,790 Share-based compensation-research and development 8,309 6,830 5,684 5,541 5,844 Share-based c

  22. Slide 22: Adjusted net income reconciliation

    22Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Q2 FY 2022 Q1 FY 2022 Q4 FY 2021 Q3 FY 2021 Q2 FY 2021 GAAP net income $38,922 $45,823 $103,499 $238,232 $103,117 Exclude GAAP provision (benefit) for income taxes 8,330 9,219 25,826 (96,690) 21,453 Income before inc

  23. Slide 23: EBITDA reconciliation

    23Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) Q2 FY 2022 Q1 FY 2022 Q4 FY 2021 Q3 FY 2021 Q2 FY 2021 Net income (GAAP) $38,922 $45,823 $103,499 $238,232 $103,117 Add: Interest expense 11,985 8

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