Slide 1: Ciena Corporation Fiscal Q1 2024 Earnings Presentation
© Ciena Corporation 2023. All rights reserved. Proprietary Information. Ciena Corporation Fiscal Q1 2024 Earnings Presentation Period ended January 27, 2024 March 7, 2024
Slide 2: Forward-looking statements and non-GAAP measures
© Ciena Corporation 2023. All rights reserved. Proprietary Information.2 Forward-looking statements and non-GAAP measures You are encouraged to review the Investors section of our website, where we routinely post press releases, Securities and Exchange Commission ("SEC") filings, recent news, financ
Slide 3: Table of Contents
© Ciena Corporation 2023. All rights reserved. Proprietary Information.3 Table of Contents 1. Overview & Ciena's portfolio 2. Market context 3. Fiscal Q1 2024 financial performance 4. Appendix
Slide 4: Overview
© Ciena Corporation 2023. All rights reserved. Proprietary Information. Overview
Slide 5: Ciena is an industry-leading global networking systems, services, and software company
© Ciena Corporation 2023. All rights reserved. Proprietary Information.5 Ciena is an industry-leading global networking systems, services, and software company
Slide 6: The Adaptive Network enables open, programmable, and sustainable networks
© Ciena Corporation 2023. All rights reserved. Proprietary Information.6 The Adaptive Network enables open, programmable, and sustainable networks
Slide 7: Market context
© Ciena Corporation 2023. All rights reserved. Proprietary Information. Market context
Slide 8: Mega-trends driving persistent network traffic growth
© Ciena Corporation 2023. All rights reserved. Proprietary Information.8 Mega-trends driving persistent network traffic growth
Slide 9: Our market leadership
© Ciena Corporation 2023. All rights reserved. Proprietary Information.9 Our market leadership Optical Transport Report, 4Q23Optical Networking Report, 3Q23 Service Provider Switching & Routing Report, 3Q23 Transport Hardware Report, 4Q23 #1 Globally • Data center interconnect • Optical for internet
Slide 10: Next-Gen Metro and Edge is a strategic growth segment
© Ciena Corporation 2023. All rights reserved. Proprietary Information.10 Next-Gen Metro and Edge is a strategic growth segment Fiber Broadband Access is a key driver in this space
Slide 11: Fiscal Q1 2024 financial results
© Ciena Corporation 2023. All rights reserved. Proprietary Information. Q1 FY 2024 results
Slide 12: Key highlights
© Ciena Corporation 2023. All rights reserved. Proprietary Information.12 Q1 FY 2024 key highlights ▪ Non-telco represented a record high 54% of total revenue • Direct Cloud Provider revenue was up 38% YoY ▪ Subsea revenue grew nearly 49% YoY ▪ EMEA revenue increased 36% YoY ▪ Global Services revenu
Slide 13: Comparative financial highlights
© Ciena Corporation 2023. All rights reserved. Proprietary Information.13 Q1 FY 2024 comparative financial highlights * Reconciliations of these non-GAAP measures to our GAAP results are included in the Appendix and in the press release for the relative period. Q1 FY 2024 Q1 FY 2023 Revenue $1,037.7
Slide 14: Comparative operating metrics
© Ciena Corporation 2023. All rights reserved. Proprietary Information.14 Q1 FY 2024 comparative operating metrics Q1 FY 2024 Q1 FY 2023 Cash and investments $1.48B $1.16B Cash provided by (used in) operations $266M $(266)M DSO 88.0 103.0 Inventory Turns 1.9 1.7 Gross Leverage 2.42x 3.05x Net Debt $
Slide 15: Revenue by segment
© Ciena Corporation 2023. All rights reserved. Proprietary Information.15 Revenue by segment (Amounts in millions) Q1 FY 2024 Q1 FY 2023 Revenue %** Revenue %** Networking Platforms Optical Networking $695.8 67.1 $735.6 69.6 Routing and Switching 111.4 10.7 119.5 11.3 Total Networking Platforms 807.
Slide 16: Record revenue derived from non-telco customers
© Ciena Corporation 2023. All rights reserved. Proprietary Information.16 Record revenue derived from non-telco customers
Slide 17: Revenue by geographic region
© Ciena Corporation 2023. All rights reserved. Proprietary Information.17 Revenue by geographic region 13% 15% 14% 15% 15% 15% 72% 70% 70% 71% 14% 16% 20% 11% 69%
Slide 18: Appendix
© Ciena Corporation 2023. All rights reserved. Proprietary Information. Q1 FY 2024 appendix
Slide 19: Gross Profit Reconciliation
© Ciena Corporation 2023. All rights reserved. Proprietary Information.19 Q1 FY 2024 Q4 FY 2023 Q3 FY 2023 Q2 FY 2023 Q1 FY 2023 GAAP gross profit $466,962 $486,281 $448,941 $487,683 $455,946 Share-based compensation-products 1,318 1,194 1,118 1,155 1,051 Share-based compensation-services 3,020 2,82
Slide 20: Operating expense and income from operations reconciliation
© Ciena Corporation 2023. All rights reserved. Proprietary Information.20 Q1 FY 2024 Q4 FY 2023 Q3 FY 2023 Q2 FY 2023 Q1 FY 2023 GAAP operating expense $382,333 $394,979 $370,727 $384,870 $370,730 Share-based compensation-research and development 12,880 11,412 10,954 10,731 9,234 Share-based compens
Slide 21: Net income reconciliation
© Ciena Corporation 2023. All rights reserved. Proprietary Information.21 Q1 FY 2024 Q4 FY 2023 Q3 FY 2023 Q2 FY 2023 Q1 FY 2023 GAAP net income $49,547 $91,199 $29,733 $57,654 $76,241 Exclude GAAP provision (benefit) for income taxes 21,956 (20,681) 34,608 29,821 25,078 Income before income taxes 7
Slide 22: EBITDA reconciliation
© Ciena Corporation 2023. All rights reserved. Proprietary Information.22 Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) Q1 FY 2024 Q4 FY 2023 Q3 FY 2023 Q2 FY 2023 Q1 FY 2023 Net income (GAAP) $49,547 $91,199 $29,733 $57,654 $76,241 Add: Interest expense 23,776 24,207 24,060