Slide 1: Earnings Presentation
Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Ciena Corporation Period ended October 29, 2022 December 8, 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 Ciena's portfolio 3 Fiscal year 2022 financial performance 4 Fourth quarter 2022 financial performance 5 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: FY 2022 key achievements
6Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. FY 2022 key achievements ▪ Delivering industry-leading coherent technology including the world’s most widely deployed 800G, WaveLogic™ 5 Extreme (WL5e), and the widest range of interoperable and performance pluggables
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 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, 3Q22Optical Networking Report, 3Q22 Data Center Interconnect Market Share Report, 2Q22 Service Provider Switching & Routing Report, 3Q22 Transport Hardware Report, 3Q22
Slide 11: Fiscal 2022 results
11Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Fiscal 2022 results
Slide 12: FY 2022 comparative financial highlights
12Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. 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. FY 2022 FY 2021 Revenue $3.63B $3.62B Adjusted Gros
Slide 13: FY 2022 comparative operating metrics
13Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. FY 2022 comparative operating metrics FY 2022 FY 2021 Cash and investments $1.18B $1.67B Cash from (used in) operations $(168)M $542M DSO 107 98 Inventory Turns 1.8 4.1 Gross Leverage 2.25x 1.10x Net Cash $51M $927M
Slide 14: Delivering profitability and total shareholder return
14Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Delivering profitability and total shareholder return **Source: company disclosures and S&P Capital IQ. Represents 12/1/2017-11/30/2022 * A reconciliation of these non-GAAP measures to our GAAP results is included in
Slide 15: Q4 FY 2022 results
15Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Q4 FY 2022 results
Slide 16: Recent key highlights
16Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Recent key highlights ▪ Non-telco represented 38% of total revenue in fiscal Q4 2022 ▪ Routing and Switching revenue increased 39% YoY in fiscal Q4 2022, reflecting strong contribution from the recently acquired Vyat
Slide 17: Q4 FY 2022 comparative financial highlights
17Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Q4 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. Q4 FY 2022 Q4 FY 2021 Revenue $971.0M $1,041.5M
Slide 18: Revenue by segment
18Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Revenue by segment (Amounts in millions) Q4 FY 2022 Q4 FY 2021 Revenue %** Revenue %** Networking Platforms Converged Packet Optical $649.9 66.9 $754.6 72.5 Routing and Switching 102.8 10.6 74.2 7.1 Total Networking
Slide 19: Continued revenue strength derived from non-telco customers
19Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Continued revenue strength derived from non-telco customers
Slide 20: Revenue by geographic region
20Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Revenue by geographic region 12% 12% 15%16% 18% 14% 72% 70% 74% 71% 15% 11% 12% 14% 74%
Slide 21: Q4 FY 2022 appendix
21Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Q4 FY 2022 appendix
Slide 22: Gross Profit Reconciliation
22Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Q4 FY 2022 Q3 FY 2022 Q2 FY 2022 Q1 FY 2022 Q4 FY 2021 GAAP gross profit $433,597 $340,779 $401,781 $384,187 $477,119 Share-based compensation-products 907 1,002 1,058 900 920 Share-based compensation-services 2,066
Slide 23: Operating expense and income from operations reconciliation
23Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Q4 FY 2022 Q3 FY 2022 Q2 FY 2022 Q1 FY 2022 Q4 FY 2021 GAAP operating expense $356,329 $313,672 $343,352 $324,183 $339,710 Share-based compensation-research and development 8,507 8,233 8,309 6,830 5,684 Share-based c
Slide 24: Net income and EPS reconciliation
24Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Q4 FY 2022 Q3 FY 2022 Q2 FY 2022 Q1 FY 2022 Q4 FY 2021 GAAP net income $57,645 $10,512 $38,922 $45,823 $103,499 Exclude GAAP provision for income taxes 7,735 4,319 8,330 9,219 25,826 Income before income taxes 65,380
Slide 25: EBITDA reconciliation
25Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) Q4 FY 2022 Q3 FY 2022 Q2 FY 2022 Q1 FY 2022 Q4 FY 2021 Net income (GAAP) $57,645 $10,512 $38,922 $45,823 $103,499 Add: Interest expense 13,775 12,