Slide 1: Earnings Presentation, Period ended July 30, 2022
Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Ciena Corporation Period ended July 30, 2022 September 1, 2022 Earnings Presentation
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,
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 our portfolio 3 Q3 FY 2022 results 4 Appendix
Slide 4: Overview & recent achievements
4Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Overview & recent achievements
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
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 ▪ Growing revenue with MCP multi-
Slide 7: Market context and our portfolio
7Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Market context and our portfolio
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 Digital Transformation & Automation Cloud & Edge Data Center Mobility & 5G IoT & Connected Objects Virtual & Hybrid Lifestyles
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
Slide 10: Our market leadership
10Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Our market leadership Optical Transport Report, 2Q22Optical Networking Report, 1Q22 Data Center Interconnect Market Share Report, 1Q22 Service Provider Switching & Routing Report, 1Q22 Transport Hardware Report, 2Q22
Slide 11: Q3 FY 2022 results
11Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Q3 FY 2022 results
Slide 12: Q3 FY 2022 key highlights
12Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Q3 FY 2022 key highlights ▪ Non-telco represented approximately 38% of total revenue ▪ APAC region represented 15% of total revenue ▪ Routing and Switching revenue increased 45% YoY, in part reflecting strong contrib
Slide 13: Financial comparisons (year-over-year)
13Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Q3 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
Slide 14: Comparative operating metrics
14Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Q3 FY 2022 comparative operating metrics Q3 FY 2022 Q3 FY 2021 Cash and Investments $1.3B $1.5B Cash Flow from (used in) Operations $(205)M $69M DSO 100 89 Inventory Turns 2.1 4.5 Gross Leverage 2.07x 1.10x Net Cash
Slide 15: Comparative financial highlights
15Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Q3 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. Q3 FY 2022 Q3 FY 2021 Revenue $868.0M $988.1M Ad
Slide 16: Revenue by segment
16Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Revenue by segment (Amounts in millions) Q3 FY 2022 Q3 FY 2021 Revenue %** Revenue %** Networking Platforms Converged Packet Optical $563.9 65.0 $712.9 72.1 Routing and Switching 100.7 11.6 69.7 7.1 Total Networking
Slide 17: Non-telco revenue
17Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Non-telco revenue
Slide 18: Revenue by geographic region
18Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Revenue by geographic region 12% 12% 15% 11% 16% 18% 14% 70% 72% 70% 74% 71% 19% 15% 11%
Slide 19: Appendix
19Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Q3 FY 2022 appendix
Slide 20: Gross Profit Reconciliation
20Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Q3 FY 2022 Q2 FY 2022 Q1 FY 2022 Q4 FY 2021 Q3 FY 2021 GAAP gross profit $340,779 $401,781 $384,187 $477,119 $474,550 Share-based compensation-products 1,002 1,058 900 920 1,037 Share-based compensation-services 1,94
Slide 21: Operating Expense Reconciliation
21Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Q3 FY 2022 Q2 FY 2022 Q1 FY 2022 Q4 FY 2021 Q3 FY 2021 GAAP operating expense $313,672 $343,352 $324,183 $339,710 $326,027 Share-based compensation-research and development 8,233 8,309 6,830 5,684 5,541 Share-based c
Slide 22: Adjusted Net Income Reconciliation
22Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Q3 FY 2022 Q2 FY 2022 Q1 FY 2022 Q4 FY 2021 Q3 FY 2021 GAAP net income $10,512 $38,922 $45,823 $103,499 $238,232 Exclude GAAP provision (benefit) for income taxes 4,319 8,330 9,219 25,826 (96,690) Income before incom
Slide 23: Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
23Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) Q3 FY 2022 Q2 FY 2022 Q1 FY 2022 Q4 FY 2021 Q3 FY 2021 Net income (GAAP) $10,512 $38,922 $45,823 $103,499 $238,232 Add: Interest expense 12,642 11