Slide 1: Earnings Presentation, Period ended January 28, 2023
Copyright © Ciena Corporation 2023. All rights reserved. Proprietary information. Ciena Corporation Period ended January 28, 2023 March 6, 2023 Earnings Presentation
Slide 2: Forward-looking statements and non-GAAP measures
2Copyright © Ciena Corporation 2023. 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 2023. All rights reserved. Proprietary information. Table of Contents 1 Overview & recent achievements 2 Market context and Ciena's portfolio 3 Fiscal first quarter 2023 financial performance 4 Appendix
Slide 4: Overview & recent achievements
4Copyright © Ciena Corporation 2023. 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 2023. 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 2023. All rights reserved. Proprietary information. Recent key achievements ▪ Announced WaveLogic™ 6, our next generation of coherent optics and the industry's first to support up to 1.6Tbps single-carrier wavelengths ▪ Delivering industry-leading coherent technology w
Slide 7: Market context and our portfolio
7Copyright © Ciena Corporation 2023. 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 2023. All rights reserved. Proprietary information. Six mega trends and the innovations that will enable them AI, Digital Transformation & Automation Cloud Data Center Mobility & 5G IoT and Connected Objects Virtual & Hybrid Lifestyles
Slide 9: Our vision for a new network end-state
9Copyright © Ciena Corporation 2023. 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 2023. All rights reserved. Proprietary information. Our market leadership Optical Transport Report, 4Q22Optical Networking Report, 3Q22 Data Center Interconnect Market Share Report, 3Q22 Service Provider Switching & Routing Report, 3Q22 Transport Hardware and Markets
Slide 11: Fiscal first quarter 2023 results
11Copyright © Ciena Corporation 2023. All rights reserved. Proprietary information. Q1 FY 2023 results
Slide 12: Fiscal Q1 2023 key highlights
12Copyright © Ciena Corporation 2023. All rights reserved. Proprietary information. Q1 FY 2023 key highlights ▪ Non-telco represented 40% of total revenue in fiscal Q1 2023 ▪ Routing and Switching revenue increased 39% YoY in fiscal Q1 2023, reflecting strong contribution from portfolio enhancements
Slide 13: Comparative financial highlights
13Copyright © Ciena Corporation 2023. All rights reserved. Proprietary information. Q1 FY 2023 comparative financial highlights * A reconciliation of these non-GAAP measures to our GAAP results is included in the press release for the relative period. Q1 FY 2023 Q1 FY 2022 Revenue $1,056.5M $844.4M
Slide 14: Comparative operating metrics
14Copyright © Ciena Corporation 2023. All rights reserved. Proprietary information. Q1 FY 2023 comparative operating metrics Q1 FY 2023 Q1 FY 2022 Cash and investments $1.16B $1.67B Cash used in operations $(266)M $(54)M DSO 103 97 Inventory Turns 1.7 3.3 Gross Leverage 3.05x 1.65x Net Cash $(471.3)
Slide 15: Revenue by segment
15Copyright © Ciena Corporation 2023. All rights reserved. Proprietary information. Revenue by segment (Amounts in millions) Q1 FY 2023 Q1 FY 2022 Revenue %** Revenue %** Networking Platforms Converged Packet Optical $735.6 69.6 $540.9 64.1 Routing and Switching 119.5 11.3 85.7 10.1 Total Networking
Slide 16: Continued revenue strength derived from non-telco customers
16Copyright © Ciena Corporation 2023. All rights reserved. Proprietary information. Continued revenue strength derived from non-telco customers
Slide 17: Revenue by geographic region
17Copyright © Ciena Corporation 2023. All rights reserved. Proprietary information. Revenue by geographic region 12% 11% 12% 18% 15% 14% 70% 74% 71% 74% 14% 15% 13% 15% 72%
Slide 18: Appendix
18Copyright © Ciena Corporation 2023. All rights reserved. Proprietary information. Q1 FY 2023 appendix
Slide 19: Gross Profit Reconciliation
19Copyright © Ciena Corporation 2023. All rights reserved. Proprietary information. Q1 FY 2023 Q4 FY 2022 Q3 FY 2022 Q2 FY 2022 Q1 FY 2022 GAAP gross profit $455,946 $433,597 $340,779 $401,781 $384,187 Share-based compensation-products 1,051 907 1,002 1,058 900 Share-based compensation-services 2,29
Slide 20: Operating expense and income from operations reconciliation
20Copyright © Ciena Corporation 2023. All rights reserved. Proprietary information. Q1 FY 2023 Q4 FY 2022 Q3 FY 2022 Q2 FY 2022 Q1 FY 2022 GAAP operating expense $370,730 $356,329 $313,672 $343,352 $324,183 Share-based compensation-research and development 9,234 8,507 8,233 8,309 6,830 Share-based c
Slide 21: Adjusted net income and EPS reconciliation
21Copyright © Ciena Corporation 2023. All rights reserved. Proprietary information. Q1 FY 2023 Q4 FY 2022 Q3 FY 2022 Q2 FY 2022 Q1 FY 2022 GAAP net income $76,241 $57,645 $10,512 $38,922 $45,823 Exclude GAAP provision for income taxes 25,078 7,735 4,319 8,330 9,219 Income before income taxes 101,319
Slide 22: EBITDA reconciliation
22Copyright © Ciena Corporation 2023. All rights reserved. Proprietary information. Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) Q1 FY 2023 Q4 FY 2022 Q3 FY 2022 Q2 FY 2022 Q1 FY 2022 Net income (GAAP) $76,241 $57,645 $10,512 $38,922 $45,823 Add: Interest expense 15,870 13,7