Slide 1: Ciena Corporation Fiscal Q2 2024 Earnings Presentation
© Ciena Corporation 2023. All rights reserved. Proprietary Information. Ciena Corporation Fiscal Q2 2024 Earnings Presentation Period ended April 27, 2024 June 6, 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. Industry context & addressable market expansion 3. Fiscal Q2 2024 financial performance 4. Appendix
Slide 4: Overview & Ciena's portfolio
© Ciena Corporation 2023. All rights reserved. Proprietary Information. Overview & Ciena's portfolio
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: Our vision for networking: How it works
© Ciena Corporation 2023. All rights reserved. Proprietary Information.6 Our vision for networking: How it works
Slide 7: Our strategic objectives
© Ciena Corporation 2023. All rights reserved. Proprietary Information.7 Our strategic objectives Expand Optical Leadership Grow Addressable Market in Broadband Access and Converged Metro Drive Software-led Transformation • Increase optical revenues and address high-growth opportunities • Address cu
Slide 8: Industry context & addressable market expansion
© Ciena Corporation 2023. All rights reserved. Proprietary Information. Industry context & addressable market expansion
Slide 9: Increasing bandwidth consumption as a driver of network expansion
© Ciena Corporation 2023. All rights reserved. Proprietary Information.9 Increasing bandwidth consumption as a driver of network expansion
Slide 10: Our strategy leverages our Optical technology to create expanded addressable market opportunities
© Ciena Corporation 2023. All rights reserved. Proprietary Information.10 Our strategy leverages our Optical technology to create expanded addressable market opportunities
Slide 11: Our addressable market expansion strategy allows us to access higher growth markets
© Ciena Corporation 2023. All rights reserved. Proprietary Information.11 Our addressable market expansion strategy allows us to access higher growth markets 1Sources: LightCounting and Ciena internal analysis.
Slide 12: Our market leadership
© Ciena Corporation 2023. All rights reserved. Proprietary Information.12 Our market leadership Optical Transport Report, 1Q24Optical Networking Report, 4Q23 Service Provider Switching & Routing Report, 1Q24 Transport Hardware Report, 1Q24 #1 Globally • Data center interconnect • Purpose-built/compa
Slide 13: Fiscal Q2 2024 results
© Ciena Corporation 2023. All rights reserved. Proprietary Information. Q2 FY 2024 results
Slide 14: Key highlights
© Ciena Corporation 2023. All rights reserved. Proprietary Information.14 Q2 FY 2024 key highlights ▪ Non-telco represented a 46% of total revenue ▪ Reconfigurable line systems (RLS) revenue grew 12% YoY ▪ India revenue grew 16% sequentially ▪ Global Services revenue grew 5% YoY • Customer traction
Slide 15: Comparative financial highlights
© Ciena Corporation 2023. All rights reserved. Proprietary Information.15 Q2 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. Q2 FY 2024 Q2 FY 2023 Revenue $910.8M
Slide 16: Comparative operating metrics
© Ciena Corporation 2023. All rights reserved. Proprietary Information.16 Q2 FY 2024 comparative operating metrics Q2 FY 2024 Q2 FY 2023 Cash and investments $1.42B $1.34B Cash provided by operations $59M $230M DSO 98.0 96.7 Inventory Turns 1.6 2.0 Gross Leverage 2.81x 2.78x Net Debt $195M $284M
Slide 17: Revenue by segment
© Ciena Corporation 2023. All rights reserved. Proprietary Information.17 Revenue by segment (Amounts in millions) Q2 FY 2024 Q2 FY 2023 Revenue %** Revenue %** Networking Platforms Optical Networking $560.2 61.5 $784.5 69.3 Routing and Switching 116.1 12.7 130.4 11.5 Total Networking Platforms 676.
Slide 18: Record revenue derived from non-telco customers
© Ciena Corporation 2023. All rights reserved. Proprietary Information.18 Record revenue derived from non-telco customers
Slide 19: Revenue by geographic region
© Ciena Corporation 2023. All rights reserved. Proprietary Information.19 Revenue by geographic region 15% 16% 11% 15% 14% 20% 70% 70% 71% 69% 15% 14% 10% 17% 73%
Slide 20: Appendix
© Ciena Corporation 2023. All rights reserved. Proprietary Information. Q2 FY 2024 appendix
Slide 21: Gross Profit Reconciliation
© Ciena Corporation 2023. All rights reserved. Proprietary Information.21 Q2 FY 2024 Q1 FY 2024 Q4 FY 2023 Q3 FY 2023 Q2 FY 2023 GAAP gross profit $388,661 $466,962 $486,281 $448,941 $487,683 Share-based compensation-products 1,760 1,318 1,194 1,118 1,155 Share-based compensation-services 3,344 3,02
Slide 22: Operating expense and income from operations reconciliation
© Ciena Corporation 2023. All rights reserved. Proprietary Information.22 Q2 FY 2024 Q1 FY 2024 Q4 FY 2023 Q3 FY 2023 Q2 FY 2023 GAAP operating expense $392,626 $382,333 $394,979 $370,727 $384,870 Share-based compensation-research and development 14,066 12,880 11,412 10,954 10,731 Share-based compen
Slide 23: Adjusted net income reconciliation
© Ciena Corporation 2023. All rights reserved. Proprietary Information.23 Q2 FY 2024 Q1 FY 2024 Q4 FY 2023 Q3 FY 2023 Q2 FY 2023 GAAP net income (loss) $(16,849) $49,547 $91,199 $29,733 $57,654 Exclude GAAP provision (benefit) for income taxes 820 21,956 (20,681) 34,608 29,821 Income (loss) before i
Slide 24: EBITDA reconciliation
© Ciena Corporation 2023. All rights reserved. Proprietary Information.24 Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) Q2 FY 2024 Q1 FY 2024 Q4 FY 2023 Q3 FY 2023 Q2 FY 2023 Net income (loss) (GAAP) $(16,849) $49,547 $91,199 $29,733 $57,654 Add: Interest expense 23,861 23,77