CIEN Ciena Corporation

Ciena® Corporation (NYSE: CIEN), a networking systems, services and software company, today announced unaudited financial results for its fiscal third quarter ended July 27, 2024.

• Q3 Revenue: $942.3 million
• Q3 Net Income per Share: $0.10 GAAP; $0.35 adjusted (non-GAAP)
• Share Repurchases: Repurchased approximately 0.6 million shares of common stock for an aggregate price of $29.0 million during the quarter

"We delivered strong results for the fiscal third quarter that reflect growing momentum with cloud providers and continued gradual recovery with service providers," said Gary Smith, president and CEO, Ciena. "With leading innovation that is well-aligned with our customers' focus on building cloud and AI-capable infrastructures, we are well-positioned to continue to gain share and deliver profitable growth.”

For the fiscal third quarter 2024, Ciena reported revenue of $942.3 million as compared to $1.07 billion for the fiscal third quarter 2023.

Ciena's GAAP net income for the fiscal third quarter 2024 was $14.2 million, or $0.10 per diluted common share, which compares to a GAAP net income of $29.7 million, or $0.20 per diluted common share, for the fiscal third quarter 2023.

Ciena's adjusted (non-GAAP) net income for the fiscal third quarter 2024 was $50.8 million, or $0.35 per diluted common share, which compares to an adjusted (non-GAAP) net income of $89.1 million, or $0.59 per diluted common share, for the fiscal third quarter 2023.

Fiscal Third Quarter 2024 Performance Summary

The tables below (in millions, except percentage data) provide comparisons of certain quarterly results to the prior year. Appendices A and B set forth reconciliations between the GAAP and adjusted (non-GAAP) measures contained in this release.

 

 

GAAP Results (unaudited)

 

 

Q3

 

Q3

 

Period Change

 

 

FY 2024

 

FY 2023

 

Y-T-Y*

Revenue

 

$

942.3

 

 

$

1,067.9

 

 

(11.8

)%

Gross margin

 

 

42.9

%

 

 

42.0

%

 

0.9

%

Operating expense

 

$

377.2

 

 

$

370.7

 

 

1.7

%

Operating margin

 

 

2.9

%

 

 

7.3

%

 

(4.4

)%

 

 

Non-GAAP Results (unaudited)

 

 

Q3

 

Q3

 

Period Change

 

 

FY 2024

 

FY 2023

 

Y-T-Y*

Revenue

 

$

942.3

 

 

$

1,067.9

 

 

(11.8

)%

Adj. gross margin

 

 

43.7

%

 

 

42.7

%

 

1.0

%

Adj. operating expense

 

$

336.0

 

 

$

327.9

 

 

2.5

%

Adj. operating margin

 

 

8.0

%

 

 

12.0

%

 

(4.0

)%

Adj. EBITDA

 

$

98.5

 

 

$

151.3

 

 

(34.9

)%

* Denotes % change, or in the case of margin, absolute change

 

 

Revenue by Segment (unaudited)

 

 

Q3 FY 2024

 

Q3 FY 2023

 

 

Revenue

 

%**

 

Revenue

 

%**

Networking Platforms

 

 

 

 

 

 

 

 

Optical Networking

 

$

606.8

 

64.4

 

$

719.0

 

67.3

Routing and Switching

 

 

92.7

 

9.8

 

 

127.6

 

11.9

Total Networking Platforms

 

 

699.5

 

74.2

 

 

846.6

 

79.2

 

 

 

 

 

 

 

 

 

Platform Software and Services

 

 

83.2

 

8.9

 

 

78.9

 

7.4

 

 

 

 

 

 

 

 

 

Blue Planet Automation Software and Services

 

 

25.8

 

2.7

 

 

13.1

 

1.3

 

 

 

 

 

 

 

 

 

Global Services

 

 

 

 

 

 

 

 

Maintenance Support and Training

 

 

74.4

 

7.9

 

 

72.9

 

6.8

Installation and Deployment

 

 

46.5

 

4.9

 

 

46.8

 

4.4

Consulting and Network Design

 

 

12.9

 

1.4

 

 

9.6

 

0.9

Total Global Services

 

 

133.8

 

14.2

 

 

129.3

 

12.1

 

 

 

 

 

 

 

 

 

Total

 

$

942.3

 

100.0

 

$

1,067.9

 

100.0

** Denotes % of total revenue

Additional Performance Metrics for Fiscal Third Quarter 2024

 

 

Revenue by Geographic Region (unaudited)

 

 

Q3 FY 2024

 

Q3 FY 2023

 

 

Revenue

 

% **

 

Revenue

 

% **

Americas

 

$

718.6

 

76.3

 

$

749.5

 

70.2

Europe, Middle East and Africa

 

 

135.0

 

14.3

 

 

152.8

 

14.3

Asia Pacific

 

 

88.7

 

9.4

 

 

165.6

 

15.5

Total

 

$

942.3

 

100.0

 

$

1,067.9

 

100.0

** Denotes % of total revenue

• Two 10%-plus customers represented a total 26.6% of revenue
• Cash and investments totaled $1.2 billion
• Cash flow used in operations totaled $159.4 million
• Average days' sales outstanding (DSOs) were 100
• Accounts receivable, net balance was $899.9 million
• Unbilled contract asset, net balance was $142.8 million
• Inventories totaled $937.4 million, including:
  • Raw materials: $612.7 million
  • Work in process: $44.4 million
  • Finished goods: $314.0 million
  • Deferred cost of sales: $36.0 million
  • Reserve for excess and obsolescence: $(69.7) million
• Product inventory turns were 1.8
• Headcount totaled 8,781

Supplemental Materials and Live Web Broadcast of Unaudited Fiscal Third Quarter 2024 Results

Today, Wednesday, September 4, 2024, in conjunction with this announcement, Ciena has posted to the Quarterly Results page of the Investor Relations section of its website certain related supporting materials for its unaudited fiscal third quarter 2024 results.

Ciena's management will also host a discussion today with investors and financial analysts that will include the Company's outlook. The live audio web broadcast beginning at 8:30 a.m. Eastern will be accessible via www.ciena.com. An archived replay of the live broadcast will be available shortly following its conclusion on the Investor Relations page of Ciena's website.

Notes to Investors

Forward-Looking Statements. 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, financial results, supplemental financial information, and other announcements. From time to time we exclusively post material information to this website along with other disclosure channels that we use. This press release contains certain forward-looking statements that involve risks and uncertainties. These statements are based on current expectations, forecasts, assumptions and other information available to the Company as of the date hereof. Forward-looking statements include statements regarding Ciena's expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words. Forward-looking statements in this release include: "We delivered strong results for the fiscal third quarter that reflect growing momentum with cloud providers and continued gradual recovery with service providers. With leading innovation that is well-aligned with our customers' focus on building cloud and AI-capable infrastructures, we are well-positioned to continue to gain share and deliver profitable growth.”

Ciena's actual results, performance or events may differ materially from these forward-looking statements made or implied due to a number of risks and uncertainties relating to Ciena's business, including: the effect of broader economic and market conditions on our customers, their spending and their businesses and markets; our ability to execute our business and growth strategies; the impact of macroeconomic conditions and global supply chain constraints or disruptions including increased supply costs and lead times; the impact of the introduction of new technologies by us or our competitors; seasonality and the timing and size of customer orders, their delivery dates and our ability to recognize revenue relating to such sales; the level of competitive pressure we encounter; the product, customer and geographic mix of sales within the period; changes in foreign currency exchange rates; factors beyond our control such as natural disasters, climate change, acts of war or terrorism, geopolitical tensions or events, including but not limited to the ongoing conflicts between Ukraine and Russia, and Israel and Hamas, and public health emergencies or epidemics, including the COVID-19 pandemic; changes in tax or trade regulations, including the imposition of tariffs, duties or efforts to withdraw from or materially modify international trade agreements; cyberattacks, data breaches or other security incidents involving our enterprise network environment or our products; regulatory changes, litigation involving our intellectual property or government investigations; and the other risk factors disclosed in Ciena’s periodic reports filed with the Securities and Exchange Commission (SEC) including its Annual Report on Form 10-K filed with the SEC on December 15, 2023 and included in its Quarterly Report on Form 10-Q for the third quarter of fiscal 2024 to be filed with the SEC. Ciena assumes no obligation to update any forward-looking information included in this press release.

Non-GAAP Presentation of Quarterly and Annual Results. This release includes non-GAAP measures of Ciena's gross profit, operating expense, income from operations, earnings before interest, tax, depreciation and amortization (EBITDA), Adjusted EBITDA, and measures of net income and net income per share. In evaluating the operating performance of Ciena's business, management excludes certain charges and credits that are required by GAAP. These items share one or more of the following characteristics: they are unusual and Ciena does not expect them to recur in the ordinary course of its business; they do not involve the expenditure of cash; they are unrelated to the ongoing operation of the business in the ordinary course; or their magnitude and timing is largely outside of Ciena's control. Management believes that the non-GAAP measures below provide management and investors useful information and meaningful insight to the operating performance of the business. The presentation of these non-GAAP financial measures should be considered in addition to Ciena's GAAP results and these measures are not intended to be a substitute for the financial information prepared and presented in accordance with GAAP. Ciena's non-GAAP measures and the related adjustments may differ from non-GAAP measures used by other companies and should only be used to evaluate Ciena's results of operations in conjunction with our corresponding GAAP results. To the extent not previously disclosed in a prior Ciena financial results press release, Appendices A and B to this press release set forth a complete GAAP to non-GAAP reconciliation of the non-GAAP measures contained in this release.

About Ciena. Ciena (NYSE: CIEN) is a global leader in networking systems, services, and software. We build the most adaptive networks in the industry, enabling customers to anticipate and meet ever-increasing digital demands. For three-plus decades, Ciena has brought our humanity to our relentless pursuit of innovation. Prioritizing collaborative relationships with our customers, partners, and communities, we create flexible, open, and sustainable networks that better serve all users—today and into the future. For updates on Ciena, follow us on LinkedIn, X, the Ciena Insights blog, or visit www.ciena.com.

CIENA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

 

 

Quarter Ended

 

Nine Months Ended

 

July 27,

 

July 29,

 

July 27,

 

July 29,

 

2024

 

2023

 

2024

 

2023

Revenue:

 

 

 

 

 

 

 

Products

$

729,503

 

 

$

865,197

 

 

$

2,266,596

 

 

$

2,678,242

 

Services

 

212,805

 

 

 

202,689

 

 

 

624,247

 

 

 

578,820

 

Total revenue

 

942,308

 

 

 

1,067,886

 

 

 

2,890,843

 

 

 

3,257,062

 

Cost of goods sold:

 

 

 

 

 

 

 

Products

 

433,533

 

 

 

516,900

 

 

 

1,315,737

 

 

 

1,559,120

 

Services

 

104,830

 

 

 

102,045

 

 

 

315,538

 

 

 

305,372

 

Total cost of goods sold

 

538,363

 

 

 

618,945

 

 

 

1,631,275

 

 

 

1,864,492

 

Gross profit

 

403,945

 

 

 

448,941

 

 

 

1,259,568

 

 

 

1,392,570

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

 

188,888

 

 

 

189,392

 

 

 

571,537

 

 

 

561,115

 

Selling and marketing

 

121,520

 

 

 

118,266

 

 

 

373,749

 

 

 

367,156

 

General and administrative

 

58,248

 

 

 

49,349

 

 

 

162,504

 

 

 

151,184

 

Significant asset impairments and restructuring costs

 

1,361

 

 

 

4,174

 

 

 

21,987

 

 

 

16,625

 

Amortization of intangible assets

 

7,185

 

 

 

9,487

 

 

 

22,384

 

 

 

26,773

 

Acquisition and integration costs

 

—

 

 

 

59

 

 

 

—

 

 

 

3,474

 

Total operating expenses

 

377,202

 

 

 

370,727

 

 

 

1,152,161

 

 

 

1,126,327

 

Income from operations

 

26,743

 

 

 

78,214

 

 

 

107,407

 

 

 

266,243

 

Interest and other income, net

 

14,013

 

 

 

10,187

 

 

 

36,460

 

 

 

50,711

 

Interest expense

 

(24,401

)

 

 

(24,060

)

 

 

(72,038

)

 

 

(63,819

)

Income before income taxes

 

16,355

 

 

 

64,341

 

 

 

71,829

 

 

 

253,135

 

Provision for income taxes

 

2,125

 

 

 

34,608

 

 

 

24,901

 

 

 

89,507

 

Net income

$

14,230

 

 

$

29,733

 

 

$

46,928

 

 

$

163,628

 

 

 

 

 

 

 

 

 

Net Income per Common Share

 

 

 

 

 

 

 

Basic net income per common share

$

0.10

 

 

$

0.20

 

 

$

0.32

 

 

$

1.09

 

Diluted net income per potential common share

$

0.10

 

 

$

0.20

 

 

$

0.32

 

 

$

1.09

 

 

 

 

 

 

 

 

 

Weighted average basic common shares outstanding

 

144,394

 

 

 

149,690

 

 

 

144,876

 

 

 

149,472

 

Weighted average dilutive potential common shares outstanding 1

 

145,361

 

 

 

149,977

 

 

 

145,795

 

 

 

149,867

 

1 Weighted average dilutive potential common shares outstanding used in calculating GAAP diluted net income per potential common share includes the following number of shares underlying certain stock option and stock unit awards: (i) 1.0 million and 0.9 million for the third quarter and first nine months of fiscal 2024, respectively, and (ii) 0.3 million and 0.4 million for the third quarter and first nine months of fiscal 2023, respectively.

CIENA CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

(unaudited)

 

 

July 27, 2024

 

October 28, 2023

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

883,365

 

 

$

1,010,618

 

Short-term investments

 

217,810

 

 

 

104,753

 

Accounts receivable, net

 

899,877

 

 

 

1,003,876

 

Inventories, net

 

937,399

 

 

 

1,050,838

 

Prepaid expenses and other

 

600,008

 

 

 

405,694

 

Total current assets

 

3,538,459

 

 

 

3,575,779

 

Long-term investments

 

111,833

 

 

 

134,278

 

Equipment, building, furniture and fixtures, net

 

299,161

 

 

 

280,147

 

Operating lease right-of-use assets

 

28,717

 

 

 

35,140

 

Goodwill

 

444,791

 

 

 

444,765

 

Other intangible assets, net

 

174,974

 

 

 

205,627

 

Deferred tax asset, net

 

831,682

 

 

 

809,306

 

Other long-term assets

 

145,513

 

 

 

116,453

 

Total assets

$

5,575,130

 

 

$

5,601,495

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

316,599

 

 

$

317,828

 

Accrued liabilities and other short-term obligations

 

347,238

 

 

 

431,419

 

Deferred revenue

 

179,457

 

 

 

154,419

 

Operating lease liabilities

 

15,565

 

 

 

16,655

 

Current portion of long-term debt

 

11,700

 

 

 

11,700

 

Total current liabilities

 

870,559

 

 

 

932,021

 

Long-term deferred revenue

 

77,628

 

 

 

74,041

 

Other long-term obligations

 

171,014

 

 

 

170,407

 

Long-term operating lease liabilities

 

26,742

 

 

 

33,259

 

Long-term debt, net

 

1,538,315

 

 

 

1,543,406

 

Total liabilities

 

2,684,258

 

 

 

2,753,134

 

Stockholders’ equity:

 

 

 

Preferred stock – par value $0.01; 20,000,000 shares authorized; zero shares issued and outstanding

 

—

 

 

 

—

 

Common stock – par value $0.01; 290,000,000 shares authorized; 144,426,873 and 144,829,938 shares issued and outstanding

 

1,444

 

 

 

1,448

 

Additional paid-in capital

 

6,260,095

 

 

 

6,262,083

 

Accumulated other comprehensive loss

 

(40,192

)

 

 

(37,767

)

Accumulated deficit

 

(3,330,475

)

 

 

(3,377,403

)

Total stockholders’ equity

 

2,890,872

 

 

 

2,848,361

 

Total liabilities and stockholders’ equity

$

5,575,130

 

 

$

5,601,495

 

 

 

 

 

CIENA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands) (unaudited)

 

 

Nine Months Ended

 

July 27,

 

July 29,

 

2024

 

2023

Cash flows provided by (used in) operating activities:

 

 

 

Net income

$

46,928

 

 

$

163,628

 

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements

 

68,997

 

 

 

69,213

 

Share-based compensation expense

 

115,433

 

 

 

95,405

 

Amortization of intangible assets

 

30,675

 

 

 

36,274

 

Deferred taxes

 

(19,909

)

 

 

(64,005

)

Provision for inventory excess and obsolescence

 

35,400

 

 

 

18,767

 

Provision for warranty

 

14,708

 

 

 

18,860

 

Gain on equity investments, net

 

—

 

 

 

(26,368

)

Other

 

11,968

 

 

 

13,694

 

Changes in assets and liabilities:

 

 

 

Accounts receivable

 

92,421

 

 

 

(80,399

)

Inventories

 

78,220

 

 

 

(262,345

)

Prepaid expenses and other

 

(221,823

)

 

 

72,062

 

Operating lease right-of-use assets

 

8,963

 

 

 

11,003

 

Accounts payable, accruals and other obligations

 

(112,352

)

 

 

(133,880

)

Deferred revenue

 

28,833

 

 

 

57,547

 

Short and long-term operating lease liabilities

 

(13,290

)

 

 

(16,596

)

Net cash provided by (used in) operating activities

 

165,172

 

 

 

(27,140

)

Cash flows used in investing activities:

 

 

 

Payments for equipment, furniture, fixtures and intellectual property

 

(53,098

)

 

 

(83,422

)

Purchases of investments

 

(197,303

)

 

 

(119,240

)

Proceeds from sales and maturities of investments

 

114,899

 

 

 

150,646

 

Settlement of foreign currency forward contracts, net

 

(362

)

 

 

(3,272

)

Purchase of equity investments

 

(21,682

)

 

 

—

 

Acquisition of business, net of cash acquired

 

—

 

 

 

(230,048

)

Net cash used in investing activities

 

(157,546

)

 

 

(285,336

)

Cash flows provided by (used in) financing activities:

 

 

 

Proceeds from issuance of term loan, net

 

—

 

 

 

497,500

 

Payment of long term debt

 

(5,850

)

 

 

(6,448

)

Payment of debt issuance costs

 

(2,554

)

 

 

(5,422

)

Payment of finance lease obligations

 

(3,004

)

 

 

(2,830

)

Shares repurchased for tax withholdings on vesting of stock unit awards

 

(33,450

)

 

 

(29,794

)

Repurchases of common stock - repurchase program, net

 

(125,816

)

 

 

(57,736

)

Proceeds from issuance of common stock

 

34,292

 

 

 

31,276

 

Net cash provided by (used in) financing activities

 

(136,382

)

 

 

426,546

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

1,499

 

 

 

9,501

 

Net increase (decrease) in cash, cash equivalents and restricted cash

 

(127,257

)

 

 

123,571

 

Cash, cash equivalents and restricted cash at beginning of period

 

1,010,786

 

 

 

994,378

 

Cash, cash equivalents and restricted cash at end of period

$

883,529

 

 

$

1,117,949

 

Supplemental disclosure of cash flow information

 

 

 

Cash paid during the period for interest, net

$

64,999

 

 

$

56,709

 

Cash paid during the period for income taxes, net

$

41,736

 

 

$

68,058

 

Operating lease payments

$

14,672

 

 

$

18,038

 

Non-cash investing and financing activities

 

 

 

Purchase of equipment in accounts payable

$

35,316

 

 

$

4,579

 

Repurchase of common stock in accrued liabilities from repurchase program, net

$

1,762

 

 

$

3,500

 

Operating right-of-use assets subject to lease liability

$

5,326

 

 

$

9,771

 

Gain on equity investments, net

$

—

 

 

$

26,368

 

APPENDIX A - Reconciliation of Adjusted (Non- GAAP) Measurements

(in thousands, except per share data) (unaudited)

 

 

 

 

 

 

 

Quarter Ended

 

 

July 27,

 

July 29,

 

 

2024

 

2023

Gross Profit Reconciliation (GAAP/non-GAAP)

 

 

 

 

GAAP gross profit

 

$

403,945

 

 

$

448,941

 

Share-based compensation-products

 

 

1,660

 

 

 

1,118

 

Share-based compensation-services

 

 

3,122

 

 

 

2,687

 

Amortization of intangible assets

 

 

2,764

 

 

 

3,187

 

Total adjustments related to gross profit

 

 

7,546

 

 

 

6,992

 

Adjusted (non-GAAP) gross profit

 

$

411,491

 

 

$

455,933

 

Adjusted (non-GAAP) gross profit percentage

 

 

43.7

%

 

 

42.7

%

 

 

 

 

 

Operating Expense Reconciliation (GAAP/non-GAAP)

 

 

 

 

GAAP operating expense

 

$

377,202

 

 

$

370,727

 

Share-based compensation-research and development

 

 

13,118

 

 

 

10,954

 

Share-based compensation-sales and marketing

 

 

10,315

 

 

 

8,770

 

Share-based compensation-general and administrative

 

 

9,257

 

 

 

9,377

 

Significant asset impairments and restructuring costs

 

 

1,361

 

 

 

4,174

 

Amortization of intangible assets

 

 

7,185

 

 

 

9,487

 

Acquisition and integration costs

 

 

—

 

 

 

59

 

Total adjustments related to operating expense

 

 

41,236

 

 

 

42,821

 

Adjusted (non-GAAP) operating expense

 

$

335,966

 

 

$

327,906

 

 

 

 

 

 

Income from Operations Reconciliation (GAAP/non-GAAP)

 

 

 

 

GAAP income from operations

 

$

26,743

 

 

$

78,214

 

Total adjustments related to gross profit

 

 

7,546

 

 

 

6,992

 

Total adjustments related to operating expense

 

 

41,236

 

 

 

42,821

 

Total adjustments related to income from operations

 

 

48,782

 

 

 

49,813

 

Adjusted (non-GAAP) income from operations

 

$

75,525

 

 

$

128,027

 

Adjusted (non-GAAP) operating margin percentage

 

 

8.0

%

 

 

12.0

%

 

 

 

 

 

Net Income Reconciliation (GAAP/non-GAAP)

 

 

 

 

GAAP net income

 

$

14,230

 

 

$

29,733

 

Exclude GAAP provision for income taxes

 

 

2,125

 

 

 

34,608

 

Income before income taxes

 

 

16,355

 

 

 

64,341

 

Total adjustments related to income from operations

 

 

48,782

 

 

 

49,813

 

Loss on equity investment

 

 

—

 

 

 

87

 

Adjusted income before income taxes

 

 

65,137

 

 

 

114,241

 

Non-GAAP tax provision on adjusted income before income taxes

 

 

14,330

 

 

 

25,133

 

Adjusted (non-GAAP) net income

 

$

50,807

 

 

$

89,108

 

 

 

 

 

 

Weighted average basic common shares outstanding

 

 

144,394

 

 

 

149,690

 

Weighted average dilutive potential common shares outstanding 1

 

 

145,361

 

 

 

149,977

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income per Common Share

 

 

 

 

GAAP diluted net income per potential common share

 

$

0.10

 

 

$

0.20

 

Adjusted (non-GAAP) diluted net income per potential common share

 

$

0.35

 

 

$

0.59

 

1 Weighted average dilutive potential common shares outstanding used in calculating Adjusted (non-GAAP) diluted net income per potential common share includes the following number of shares underlying certain stock option and stock unit awards: (i) 1.0 million for the third quarter of fiscal 2024; and (ii) 0.3 million for the third quarter of fiscal 2023.

APPENDIX B - Calculation of EBITDA and Adjusted EBITDA

(in thousands) (unaudited)

 

 

 

 

 

 

 

Quarter Ended

 

 

July 27,

 

July 29,

 

 

2024

 

2023

Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)

 

 

 

 

Net income (GAAP)

 

$

14,230

 

$

29,733

Add: Interest expense

 

 

24,401

 

 

24,060

Less: Interest and other income, net

 

 

14,013

 

 

10,187

Add: Provision for income taxes

 

 

2,125

 

 

34,608

Add: Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements

 

 

22,981

 

 

23,310

Add: Amortization of intangible assets

 

 

9,949

 

 

12,674

EBITDA

 

$

59,673

 

$

114,198

Add: Share-based compensation expense

 

 

37,472

 

 

32,906

Add: Significant asset impairments and restructuring costs

 

 

1,361

 

 

4,174

Add: Acquisition and integration costs

 

 

—

 

 

59

Adjusted EBITDA

 

$

98,506

 

$

151,337

* * *

The adjusted (non-GAAP) measures above and their reconciliation to Ciena's GAAP results for the periods presented reflect adjustments relating to the following items:

• Share-based compensation - a non-cash expense incurred in accordance with share-based compensation accounting guidance.
• Significant asset impairments and restructuring costs - costs incurred as a result of restructuring activities taken to align resources with perceived market opportunities, the redesign of business processes and restructuring certain real estate facilities.
• Amortization of intangible assets - a non-cash expense arising from the acquisition of intangible assets, principally developed technologies and customer-related intangibles, that Ciena is required to amortize over an expected useful life.
• Acquisition and integration costs - primarily consist of financial, legal and accounting advisors' costs and employment-related costs related to Ciena's acquisitions in fiscal 2023.
• Loss on equity investment - reflects changes in the carrying value of a certain equity investment due to triggering events.
• Non-GAAP tax provision - consists of current and deferred income tax expense commensurate with the level of adjusted income before income taxes and utilizes a current, blended U.S. and foreign statutory annual tax rate of 22.0% for both the fiscal third quarter 2024 and the fiscal third quarter 2023. This rate may be subject to change in the future, including as a result of changes in tax policy or tax strategy.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240903683576/en/

Press Contact: Jamie Moody Ciena Corporation +1 (410) 694-5761 pr@ciena.com

Investor Contact: Gregg Lampf Ciena Corporation +1 (410) 694-5700 ir@ciena.com