Slide 1: Earnings Presentation, Period ended July 29, 2023
© Ciena Corporation 2023. All rights reserved. Proprietary information. Ciena Corporation Period ended July 29, 2023 August 31, 2023 Earnings Presentation
Slide 2: Forward-looking statements and non-GAAP measures
2© 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, forecasts,
Slide 3: Table of Contents
3© Ciena Corporation 2023. All rights reserved. Proprietary information. Table of Contents 1 Overview & recent achievements 2 Market context and Ciena's portfolio 3 Q3 FY 2023 financial performance 4 Appendix
Slide 4: Overview & recent achievements
4© 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
5© 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 business Leade
Slide 6: Recent key achievements
6© 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 with WaveLo
Slide 7: Market context and Ciena's portfolio
7© Ciena Corporation 2023. All rights reserved. Proprietary information. Market context and Ciena's portfolio
Slide 8: Six mega trends and the innovations that will enable them
8© 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
9© 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 network re
Slide 10: Our market leadership
10© Ciena Corporation 2023. All rights reserved. Proprietary information. Our market leadership Optical Transport Report, 2Q23Optical Networking Report, 1Q23 Service Provider Switching & Routing Report, 1Q23 Transport Hardware and Markets Report, 2Q23 Transport Applications Report, 1Q23 #1 GLOBALLY
Slide 11: Q3 2023 results
11© Ciena Corporation 2023. All rights reserved. Proprietary information. Q3 FY 2023 results
Slide 12: Q3 2023 key highlights
12© Ciena Corporation 2023. All rights reserved. Proprietary information. Q3 FY 2023 key highlights ▪ Non-telco represented a record high 46% of total revenue in fiscal Q3 2023 ◦ Direct Cloud Provider revenue increased 52% YoY ▪ Routing and Switching revenue increased 27% YoY in fiscal Q3 2023, refl
Slide 13: Comparative financial highlights
13© Ciena Corporation 2023. All rights reserved. Proprietary information. Q3 FY 2023 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. Q3 FY 2023 Q3 FY 2022 Revenue $1,067.9
Slide 14: Comparative operating metrics
14© Ciena Corporation 2023. All rights reserved. Proprietary information. Q3 FY 2023 comparative operating metrics Q3 FY 2023 Q3 FY 2022 Cash and investments $1.28B $1.26B Cash from (used in) operations $9M $(205)M DSO 96.0 100.0 Inventory Turns 1.7 2.1 Gross Leverage 2.54x 2.07x Net Cash (Debt) $(3
Slide 15: Revenue by segment
15© Ciena Corporation 2023. All rights reserved. Proprietary information. Revenue by segment (Amounts in millions) Q3 FY 2023 Q3 FY 2022 Revenue %** Revenue %** Networking Platforms Converged Packet Optical $719.0 67.3 $563.9 65.0 Routing and Switching 127.6 11.9 100.7 11.6 Total Networking Platform
Slide 16: Continued revenue strength derived from non-telco customers
16© Ciena Corporation 2023. All rights reserved. Proprietary information. Continued revenue strength derived from non-telco customers
Slide 17: Revenue by geographic region
17© Ciena Corporation 2023. All rights reserved. Proprietary information. Revenue by geographic region 15% 12% 15% 14% 14% 15% 71% 74% 72% 70% 15% 13% 16% 14% 70%
Slide 18: Appendix
18© Ciena Corporation 2023. All rights reserved. Proprietary information. Q3 FY 2023 appendix
Slide 19: Gross Profit Reconciliation
19© Ciena Corporation 2023. All rights reserved. Proprietary information. Q3 FY 2023 Q2 FY 2023 Q1 FY 2023 Q4 FY 2022 Q3 FY 2022 GAAP gross profit $448,941 $487,683 $455,946 $433,597 $340,779 Share-based compensation-products 1,118 1,155 1,051 907 1,002 Share-based compensation-services 2,687 2,659
Slide 20: Operating expense and income from operations reconciliation
20© Ciena Corporation 2023. All rights reserved. Proprietary information. Q3 FY 2023 Q2 FY 2023 Q1 FY 2023 Q4 FY 2022 Q3 FY 2022 GAAP operating expense $370,727 $384,870 $370,730 $356,329 $313,672 Share-based compensation-research and development 10,954 10,731 9,234 8,507 8,233 Share-based compensat
Slide 21: Adjusted net income and EPS reconciliation
21© Ciena Corporation 2023. All rights reserved. Proprietary information. Q3 FY 2023 Q2 FY 2023 Q1 FY 2023 Q4 FY 2022 Q3 FY 2022 GAAP net income $29,733 $57,654 $76,241 $57,645 $10,512 Exclude GAAP provision for income taxes 34,608 29,821 25,078 7,735 4,319 Income before income taxes 64,341 87,475 1
Slide 22: Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
22© Ciena Corporation 2023. All rights reserved. Proprietary information. Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) Q3 FY 2023 Q2 FY 2023 Q1 FY 2023 Q4 FY 2022 Q3 FY 2022 Net income (GAAP) $29,733 $57,654 $76,241 $57,645 $10,512 Add: Interest expense 24,060 23,889 15,870