Ciena Corporation · NYSE:CIEN

Ciena — Q1 2021 Earnings Presentation

23 slides from Ciena's earnings presentation, Mar 4, 2021

  1. Slide 1: Earnings Presentation, Period ended January 30, 2021

    Copyright © Ciena Corporation 2021. All rights reserved. Confidential & Proprietary. Ciena Corporation Period ended January 30, 2021 March 4, 2021 Earnings Presentation

  2. Slide 2: Forward-looking statements and non-GAAP measures

    2Copyright © Ciena Corporation 2021. All rights reserved. Confidential & Proprietary. Forward-looking statements and non-GAAP measures Information in this presentation and related comments of presenters contain a number of forward-looking statements that involve risks and uncertainties. These statem

  3. Slide 3: COVID-19 response

    3Copyright © Ciena Corporation 2021. All rights reserved. Confidential & Proprietary. COVID-19 response • Prioritizing health of employees and following CDC guidance for employers • The vast majority of our employees working remotely • Instituted pandemic employee benefits • Enhanced our corporate c

  4. Slide 4: FY 2021 key achievements

    4Copyright © Ciena Corporation 2021. All rights reserved. Confidential & Proprietary. Q1 FY 2021 key achievements ▪ WaveLogic 5 Extreme (WL5e) added 14 customers bringing our total design wins to 79 ▪ Blue Planet surpassed 200 total customers for our automation software and services portfolio ▪ Secu

  5. Slide 5: Market context

    5Copyright © Ciena Corporation 2021. All rights reserved. Confidential & Proprietary. Market context

  6. Slide 6: Several mega trends and the innovations that will enable them

    6Copyright © Ciena Corporation 2021. All rights reserved. Confidential & Proprietary. Several mega trends and the innovations that will enable them Fiber Deep (Cable/MSO) Cloud Data Center Mobility & 5G IoT & Connected Objects

  7. Slide 7: Market leadership rankings

    7Copyright © Ciena Corporation 2021. All rights reserved. Confidential & Proprietary. #1 GLOBALLY ◦ DATA CENTER INTERCONNECT ◦ DATA CENTER INTERCONNECT FOR ICPs ◦ PURPOSE-BUILT/COMPACT MODULAR DCI #1 N. AMERICA ◦ TOTAL OPTICAL NETWORKING ◦ DATA CENTER INTERCONNECT ◦ PACKET OPTICAL ◦ TOTAL WDM ◦ LH W

  8. Slide 8: Ciena's Adaptive Network vision and portfolio

    8Copyright © Ciena Corporation 2021. All rights reserved. Confidential & Proprietary. Ciena’s Adaptive Network vision and portfolio

  9. Slide 9: Our vision for a new network end-state

    9Copyright © Ciena Corporation 2021. All rights reserved. Confidential & Proprietary. 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 physic

  10. Slide 10: Our portfolio Enabling the Adaptive Network

    10Copyright © Ciena Corporation 2021. All rights reserved. Confidential & Proprietary. Our portfolio Enabling the Adaptive Network™ CIENA SERVICES A consultative approach to build, operate, and continually improve customers’ networks to accelerate their unique journey to the Adaptive Network. We bri

  11. Slide 11: FY 2021 results

    11Copyright © Ciena Corporation 2021. All rights reserved. Confidential & Proprietary. Q1 FY 2021 results

  12. Slide 12: FY 2021 key highlights

    12Copyright © Ciena Corporation 2021. All rights reserved. Confidential & Proprietary. Q1 FY 2021 key highlights ▪ Non-telco represented 39% of total revenue • Direct web-scale increased 25% YoY, representing over 20% of total revenue ▪ EMEA revenue increased 20% YoY, representing nearly 21% of tota

  13. Slide 13: FY 2021 comparisons (year-over-year)

    13Copyright © Ciena Corporation 2021. All rights reserved. Confidential & Proprietary. Q1 FY 2021 comparisons (year-over-year) * A reconciliation of these non-GAAP measures to our GAAP results is included in the appendix to this presentation. $832.9 $757.1 Q1 FY 2020 Q1 FY 2021 Revenue (in millions)

  14. Slide 14: FY 2021 comparative operating metrics

    14Copyright © Ciena Corporation 2021. All rights reserved. Confidential & Proprietary. Q1 FY 2021 comparative operating metrics Cash and Investments Cash Flow from (used in) Operations DSO Q1 FY 2021 Inventory Turns Q1 FY 2020 $1.3B $(7)M 93 3.2 $1.0B $40M 80 4.5 Gross Leverage 1.1x 1.3x Net Cash (D

  15. Slide 15: Revenue by segment

    15Copyright © Ciena Corporation 2021. All rights reserved. Confidential & Proprietary. Revenue by segment (Amounts in millions) Q1 FY 2021 Q1 FY 2020 Revenue %** Revenue %** Networking Platforms Converged Packet Optical 512.3 67.7 591.5 71.0 Routing and Switching 64.3 8.5 67.5 8.1 Total Networking P

  16. Slide 16: Continued revenue strength derived from non-telco customers

    16Copyright © Ciena Corporation 2021. All rights reserved. Confidential & Proprietary. Continued revenue strength derived from non-telco customers* *represents 39.0% of total revenue in Q1 FY 2021 Q1 FY 2021 20.4% 6.5% 12.1% Direct Webscale Cable Gov't, R&E, Enterprise 15% 24% 25% 22% 20% 9% 10% 9%

  17. Slide 17: Revenue by geographic region

    17Copyright © Ciena Corporation 2021. All rights reserved. Confidential & Proprietary. Revenue by geographic region Q1 FY 2021 65.6% 20.5% 13.9% Americas Europe, Middle East and Africa Asia Pacific (in m ill io ns ) Americas Europe, Middle East and Africa Asia Pacific Q1 FY 2020 Q2 FY 2020 Q3 FY 202

  18. Slide 18: Delivering consistent financial performance

    18Copyright © Ciena Corporation 2021. All rights reserved. Confidential & Proprietary. Source: Company filings Industry Average: ACIA, ADTN, ADVA, CSCO, INFN1, JNPR and NOKIA Networks segment Delivering consistent financial performance a. INFN represents INFN+Coriant from the time the acquisition cl

  19. Slide 19: FY 2021 appendix

    19Copyright © Ciena Corporation 2021. All rights reserved. Confidential & Proprietary. Q1 FY 2021 appendix

  20. Slide 20: Gross Profit Reconciliation

    20Copyright © Ciena Corporation 2021. All rights reserved. Confidential & Proprietary. Q1 FY 2021 Q4 FY 2020 Q3 FY 2020 Q2 FY 2020 Q1 FY 2020 GAAP gross profit $357,891 $404,349 $464,681 $413,326 $370,535 Share-based compensation-products 953 724 960 827 671 Share-based compensation-services 1,205 9

  21. Slide 21: Operating expense and income from operations reconciliation

    21Copyright © Ciena Corporation 2021. All rights reserved. Confidential & Proprietary. Q1 FY 2021 Q4 FY 2020 Q3 FY 2020 Q2 FY 2020 Q1 FY 2020 GAAP operating expense $282,096 $310,866 $276,645 $285,838 $292,578 Share-based compensation-research and development 4,794 4,030 4,286 4,822 3,849 Share-base

  22. Slide 22: Net income reconciliation

    22Copyright © Ciena Corporation 2021. All rights reserved. Confidential & Proprietary. Q1 FY 2021 Q4 FY 2020 Q3 FY 2020 Q2 FY 2020 Q1 FY 2020 GAAP net income $55,348 $65,041 $142,267 $91,655 $62,328 Exclude GAAP provision for income taxes 11,966 20,798 38,750 25,308 9,814 Income before income taxes

  23. Slide 23: EBITDA reconciliation

    23Copyright © Ciena Corporation 2021. All rights reserved. Confidential & Proprietary. Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) Q1 FY 2021 Q4 FY 2020 Q3 FY 2020 Q2 FY 2020 Q1 FY 2020 Net income (GAAP) $55,348 $65,041 $142,267 $91,655 $62,328 Add: Interest expense 7,360 7

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