Ciena Reports Fiscal First Quarter 2022 Financial Results

March 7, 2022 at 8:00 AM EST

HANOVER, Md.--(BUSINESS WIRE)-- Ciena® Corporation (NYSE: CIEN), a networking systems, services and software company, today announced unaudited financial results for its fiscal first quarter ended January 29, 2022.

  • Q1 Revenue: $844.4 million
  • Q1 Net Income per Share: $0.29 GAAP; $0.47 adjusted (non-GAAP)
  • Share Repurchases: Cienaentered into a $250 million accelerated share repurchase ("ASR") arrangement during the first quarter of fiscal 2022 under its new share repurchase program. The final settlement of the ASR was completed in the second quarter of fiscal 2022 with approximately 3.6 million shares repurchased.

“First quarter revenue grew more than 10% year-over-year and continued broad-based demand drove very strong orders growth in the quarter, providing us additional visibility for the fiscal year," said Gary Smith, president and CEO of Ciena. "We expect our strategic investments to drive a significant increase in supply chain capacity in the second half, and therefore remain confident in our ability to address demand and achieve the strong revenue growth we expect for the fiscal year.”

For the fiscal first quarter 2022, Ciena reported revenue of $844.4 million as compared to $757.1 million for the fiscal first quarter 2021.

Ciena's GAAP net income for the fiscal first quarter 2022 was $45.8 million, or $0.29 per diluted common share, which compares to a GAAP net income of $55.3 million, or $0.35 per diluted common share, for the fiscal first quarter 2021.

Ciena's adjusted (non-GAAP) net income for the fiscal first quarter 2022 was $72.6 million, or $0.47 per diluted common share, which compares to an adjusted (non-GAAP) net income of $81.3 million, or $0.52 per diluted common share, for the fiscal first quarter 2021.

Fiscal First Quarter 2022 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

 

 

Q1

 

Q1

 

Period Change

 

 

FY 2022

 

FY 2021

 

Y-T-Y*

Revenue

 

$

844.4

 

 

$

757.1

 

 

11.5

%

Gross margin

 

 

45.5

%

 

 

47.3

%

 

(1.8

) %

Operating expense

 

$

324.2

 

 

$

282.1

 

 

14.9

%

Operating margin

 

 

7.1

%

 

 

10.0

%

 

(2.9

) %

             
     

 

 

Non-GAAP Results

 

 

Q1

 

Q1

 

Period Change

 

 

FY 2022

 

FY 2021

 

Y-T-Y*

Revenue

 

$

844.4

 

 

$

757.1

 

 

11.5

%

Adj. gross margin

 

 

46.2

%

 

 

48.0

%

 

(1.8

)%

Adj. operating expense

 

$

290.0

 

 

$

253.0

 

 

14.6

%

Adj. operating margin

 

 

11.8

%

 

 

14.6

%

 

(2.8

)%

Adj. EBITDA

 

$

123.7

 

 

$

133.8

 

 

(7.5

)%

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

             
     

 

 

Revenue by Segment

 

 

Q1 FY 2022

 

Q1 FY 2021

 

 

Revenue

 

%**

 

Revenue

 

%**

Networking Platforms

 

 

 

 

 

 

 

 

Converged Packet Optical

 

$ 540.9

 

64.1

 

$ 512.3

 

67.7

Routing and Switching

 

85.7

 

10.1

 

64.3

 

8.5

Total Networking Platforms

 

626.6

 

74.2

 

576.6

 

76.2

 

 

 

 

 

 

 

 

 

Platform Software and Services

 

72.9

 

8.6

 

49.9

 

6.6

 

 

 

 

 

 

 

 

 

Blue Planet Automation Software and Services

 

21.1

 

2.5

 

16.9

 

2.2

 

 

 

 

 

 

 

 

 

Global Services

 

 

 

 

 

 

 

 

Maintenance Support and Training

 

72.5

 

8.6

 

67.6

 

8.9

Installation and Deployment

 

40.4

 

4.8

 

39.6

 

5.2

Consulting and Network Design

 

10.9

 

1.3

 

6.5

 

0.9

Total Global Services

 

123.8

 

14.7

 

113.7

 

15.0

 

 

 

 

 

 

 

 

 

Total

 

$ 844.4

 

100.0

 

$ 757.1

 

100.0

** Denotes % of total revenue

                 
     

Additional Performance Metrics for Fiscal First Quarter 2022

     

 

 

Revenue by Geographic Region

 

 

Q1 FY 2022

 

Q1 FY 2021

 

 

Revenue

 

% **

 

Revenue

 

% **

Americas

 

$ 595.1

 

70.5

 

$ 496.6

 

65.6

Europe, Middle East and Africa

 

150.8

 

17.8

 

155.4

 

20.5

Asia Pacific

 

98.5

 

11.7

 

105.1

 

13.9

Total

 

$ 844.4

 

100.0

 

$ 757.1

 

100.0

** Denotes % of total revenue

 
  • One 10%-plus customer represented a total of 13.1% of revenue
  • Cash and investments totaled $1.7 billion
  • Cash flow used in operations totaled $54.4 million
  • Average days' sales outstanding (DSOs) were 97
  • Accounts receivable, net balance was $795.2 million
  • Unbilled contract asset, net balance was $117.0 million
  • Inventories totaled $457.6 million, including:
    • Raw materials: $295.9 million
    • Work in process: $10.3 million
    • Finished goods: $149.9 million
    • Deferred cost of sales: $36.9 million
    • Reserve for excess and obsolescence: $(35.4) million
  • Product inventory turns were 3.3
  • Headcount totaled 7,419

Supplemental Materials and Live Web Broadcast of Unaudited Fiscal First Quarter 2022 Results

Today, Monday, March 7, 2022, 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 first quarter 2022 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: "First quarter revenue grew more than 10% year-over-year and continued broad-based demand drove very strong orders growth in the quarter, providing us additional visibility for the fiscal year" and "We expect our strategic investments to drive a significant increase in supply chain capacity in the second half, and therefore remain confident in our ability to address demand and achieve the strong revenue growth we expect for the fiscal year."

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 and their business; our ability to execute our business and growth strategies; the duration and severity of the COVID-19 pandemic and the impact of countermeasures taken to mitigate its spread on macroeconomic conditions, economic activity, demand for our technology solutions, short- and long-term changes in customer or end user needs, continuity of supply chain, our business operations, liquidity and financial results; changes in network spending or network strategy by our customers; seasonality and the timing and size of customer orders, including 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; supply chain constraints or disruptions; changes in foreign currency exchange rates affecting revenue and operating expense; factors beyond our control such as natural disasters, climate change, acts of war or terrorism, geopolitical events, including but not limited to the ongoing conflict between Ukraine and Russia, public health emergencies; the impact of the Tax Cuts and Jobs Act; changes in tax or trade regulations, including the imposition of tariffs, duties or efforts to withdraw from or materially modify international trade agreements; and the other risk factors disclosed in Ciena’s periodic reports filed with the Securities and Exchange Commission (SEC) including Ciena’s Annual Report on Form 10-K filed with the SEC on December 17, 2021 and included in its Quarterly Report on Form 10-Q for the first quarter of fiscal 2022 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 networking systems, services and software company. We provide solutions that help our customers create the Adaptive Network™ in response to the constantly changing demands of their users. By delivering best-in-class networking technology through high-touch consultative relationships, we build the world’s most agile networks with automation, openness and scale. For updates on Ciena, follow us on Twitter @Ciena, LinkedIn, 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

 

 

January 29,

 

January 30,

 

 

 

2022

 

 

 

2021

 

 

Revenue:

 

 

 

 

Products

$

665,007

 

 

$

597,220

 

 

Services

 

179,436

 

 

 

159,910

 

 

Total revenue

 

844,443

 

 

 

757,130

 

 

Cost of goods sold:

 

 

 

 

Products

 

372,565

 

 

 

315,098

 

 

Services

 

87,691

 

 

 

84,141

 

 

Total cost of goods sold

 

460,256

 

 

 

399,239

 

 

Gross profit

 

384,187

 

 

 

357,891

 

 

Operating expenses:

 

 

 

 

Research and development

 

148,409

 

 

 

132,741

 

 

Selling and marketing

 

118,881

 

 

 

97,278

 

 

General and administrative

 

44,498

 

 

 

39,993

 

 

Significant asset impairments and restructuring costs

 

3,409

 

 

 

5,867

 

 

Amortization of intangible assets

 

8,918

 

 

 

5,910

 

 

Acquisition and integration costs

 

68

 

 

 

307

 

 

Total operating expenses

 

324,183

 

 

 

282,096

 

 

Income from operations

 

60,004

 

 

 

75,795

 

 

Interest and other income (loss), net

 

3,686

 

 

 

(1,121

)

 

Interest expense

 

(8,648

)

 

 

(7,360

)

 

Income before income taxes

 

55,042

 

 

 

67,314

 

 

Provision for income taxes

 

9,219

 

 

 

11,966

 

 

Net income

$

45,823

 

 

$

55,348

 

 

 

 

 

 

 

Net Income per Common Share

 

 

 

 

Basic net income per common share

$

0.30

 

 

$

0.36

 

 

Diluted net income per potential common share

$

0.29

 

 

$

0.35

 

 

 

 

 

 

 

Weighted average basic common shares outstanding

 

154,151

 

 

 

155,174

 

 

Weighted average dilutive potential common shares outstanding 1

 

155,807

 

 

 

156,583

 

 

                 

1 Weighted average dilutive potential common shares outstanding used in calculating GAAP diluted net income per potential common share for the first quarter of fiscal 2022 includes 1.7 million shares underlying certain stock option and stock unit awards.

Weighted average dilutive potential common shares outstanding used in calculating GAAP diluted net income per potential common share for the first quarter of fiscal 2021 includes 1.4 million shares underlying certain stock option and stock unit awards.

                 

 

 

 

 

CIENA CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

(unaudited)

       

 

January 29,
2022

 

October 30,
2021

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

1,118,636

 

 

$

1,422,546

 

Short-term investments

 

460,368

 

 

 

181,483

 

Accounts receivable, net

 

795,247

 

 

 

884,958

 

Inventories

 

457,604

 

 

 

374,265

 

Prepaid expenses and other

 

332,259

 

 

 

325,654

 

Total current assets

 

3,164,114

 

 

 

3,188,906

 

Long-term investments

 

88,640

 

 

 

70,038

 

Equipment, building, furniture and fixtures, net

 

276,120

 

 

 

284,968

 

Operating lease right-of-use assets

 

43,340

 

 

 

44,285

 

Goodwill

 

322,822

 

 

 

311,645

 

Other intangible assets, net

 

101,026

 

 

 

65,314

 

Deferred tax asset, net

 

799,593

 

 

 

800,180

 

Other long-term assets

 

104,707

 

 

 

99,891

 

Total assets

$

4,900,362

 

 

$

4,865,227

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

310,107

 

 

$

356,176

 

Accrued liabilities and other short-term obligations

 

299,408

 

 

 

409,285

 

Deferred revenue

 

124,956

 

 

 

118,007

 

Operating lease liabilities

 

18,927

 

 

 

18,632

 

Current portion of long-term debt

 

6,930

 

 

 

6,930

 

Total current liabilities

 

760,328

 

 

 

909,030

 

Long-term deferred revenue

 

60,670

 

 

 

57,457

 

Other long-term obligations

 

159,942

 

 

 

166,803

 

Long-term operating lease liabilities

 

39,369

 

 

 

41,564

 

Long-term debt, net

 

1,065,263

 

 

 

670,355

 

Total liabilities

$

2,085,572

 

 

$

1,845,209

 

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; 152,990,723

and 154,858,981 shares issued and outstanding

 

1,530

 

 

 

1,549

 

Additional paid-in capital

 

6,567,474

 

 

 

6,803,162

 

Accumulated other comprehensive income (loss)

 

(14,905

)

 

 

439

 

Accumulated deficit

 

(3,739,309

)

 

 

(3,785,132

)

Total stockholders’ equity

 

2,814,790

 

 

 

3,020,018

 

Total liabilities and stockholders’ equity

$

4,900,362

 

 

$

4,865,227

 

               
   

CIENA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands) (unaudited)

   

 

Three Months Ended

 

January 29,

 

January 30,

 

 

2022

 

 

 

2021

 

Cash flows used in operating activities:

 

 

 

Net income

$

45,823

 

 

$

55,348

 

Adjustments to reconcile net income to net cash used in operating activities:

 

 

 

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

 

23,653

 

 

 

23,188

 

Share-based compensation expense

 

24,297

 

 

 

18,964

 

Amortization of intangible assets

 

12,230

 

 

 

9,642

 

Deferred taxes

 

(766

)

 

 

(905

)

Provision for inventory excess and obsolescence

 

3,799

 

 

 

5,905

 

Provision for warranty

 

2,817

 

 

 

3,239

 

Other

 

(8,615

)

 

 

4,277

 

Changes in assets and liabilities:

 

 

 

Accounts receivable

 

87,223

 

 

 

18,862

 

Inventories

 

(87,178

)

 

 

(51,020

)

Prepaid expenses and other

 

(14,134

)

 

 

(13,835

)

Operating lease right-of-use assets

 

4,120

 

 

 

4,103

 

Accounts payable, accruals and other obligations

 

(152,981

)

 

 

(112,170

)

Deferred revenue

 

10,417

 

 

 

31,917

 

Short and long-term operating lease liabilities

 

(5,116

)

 

 

(4,834

)

Net cash used in operating activities

 

(54,411

)

 

 

(7,319

)

Cash flows used in investing activities:

 

 

 

Payments for equipment, furniture, fixtures and intellectual property

 

(25,804

)

 

 

(20,868

)

Purchase of available for sale securities

 

(350,465

)

 

 

(71,756

)

Proceeds from maturities of available for sale securities

 

50,000

 

 

 

51,266

 

Settlement of foreign currency forward contracts, net

 

1,346

 

 

 

2,357

 

Acquisition of business, net of cash acquired

 

(56,036

)

 

 

 

Proceeds from sale of equity investment

 

 

 

 

4,678

 

Net cash used in investing activities

 

(380,959

)

 

 

(34,323

)

Cash flows provided by (used in) financing activities:

 

 

 

Proceeds from issuance of senior notes

 

400,000

 

 

 

 

Payment of long term debt

 

 

 

 

(1,732

)

Payment of debt issuance costs

 

(4,506

)

 

 

 

Payment of finance lease obligations

 

(771

)

 

 

(702

)

Shares repurchased for tax withholdings on vesting of restricted stock units

 

(25,150

)

 

 

(19,242

)

Repurchases of common stock - repurchase program

 

(250,000

)

 

 

(12,406

)

Proceeds from issuance of common stock

 

15,146

 

 

 

13,447

 

Net cash provided by (used in) financing activities

 

134,719

 

 

 

(20,635

)

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

 

(3,259

)

 

 

2,879

 

Net decrease in cash, cash equivalents and restricted cash

 

(303,910

)

 

 

(59,398

)

Cash, cash equivalents and restricted cash at beginning of period

 

1,422,604

 

 

 

1,088,708

 

Cash, cash equivalents and restricted cash at end of period

$

1,118,694

 

 

$

1,029,310

 

Supplemental disclosure of cash flow information

 

 

 

Cash paid during the period for interest

$

7,670

 

 

$

7,566

 

Cash paid during the period for income taxes, net

$

6,112

 

 

$

8,798

 

Operating lease payments

$

5,480

 

 

$

5,387

 

Non-cash investing and financing activities

 

 

 

Purchase of equipment in accounts payable

$

2,972

 

 

$

5,935

 

Repurchase of common stock in accrued liabilities from repurchase program

$

 

 

$

800

 

Operating lease right-of-use assets subject to lease liability

$

3,376

 

 

$

555

 

               
 

APPENDIX A - Reconciliation of Adjusted (Non- GAAP) Quarterly Measures

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

 

 

 

 

 

 

 

Quarter Ended

 

 

January 29,

 

January 30,

 

 

 

2022

 

 

 

2021

 

Gross Profit Reconciliation (GAAP/non-GAAP)

 

 

 

 

GAAP gross profit

 

$

384,187

 

 

$

357,891

 

Share-based compensation-products

 

 

900

 

 

 

953

 

Share-based compensation-services

 

 

1,584

 

 

 

1,205

 

Amortization of intangible assets

 

 

3,312

 

 

 

3,732

 

Total adjustments related to gross profit

 

 

5,796

 

 

 

5,890

 

Adjusted (non-GAAP) gross profit

 

$

389,983

 

 

$

363,781

 

Adjusted (non-GAAP) gross profit percentage

 

 

46.2

%

 

 

48.0

%

 

 

 

 

 

Operating Expense Reconciliation (GAAP/non-GAAP)

 

 

 

 

GAAP operating expense

 

$

324,183

 

 

$

282,096

 

Share-based compensation-research and development

 

 

6,830

 

 

 

4,794

 

Share-based compensation-sales and marketing

 

 

7,060

 

 

 

5,816

 

Share-based compensation-general and administrative

 

 

7,912

 

 

 

6,358

 

Significant asset impairments and restructuring costs

 

 

3,409

 

 

 

5,867

 

Amortization of intangible assets

 

 

8,918

 

 

 

5,910

 

Acquisition and integration costs

 

 

68

 

 

 

307

 

Total adjustments related to operating expense

 

 

34,197

 

 

 

29,052

 

Adjusted (non-GAAP) operating expense

 

$

289,986

 

 

$

253,044

 

 

 

 

 

 

Income from Operations Reconciliation (GAAP/non-GAAP)

 

 

 

 

GAAP income from operations

 

$

60,004

 

 

$

75,795

 

Total adjustments related to gross profit

 

 

5,796

 

 

 

5,890

 

Total adjustments related to operating expense

 

 

34,197

 

 

 

29,052

 

Total adjustments related to income from operations

 

 

39,993

 

 

 

34,942

 

Adjusted (non-GAAP) income from operations

 

$

99,997

 

 

$

110,737

 

Adjusted (non-GAAP) operating margin percentage

 

 

11.8

%

 

 

14.6

%

 

 

 

 

 

Net Income Reconciliation (GAAP/non-GAAP)

 

 

 

 

GAAP net income

 

$

45,823

 

 

$

55,348

 

Exclude GAAP provision for income taxes

 

 

9,219

 

 

 

11,966

 

Income before income taxes

 

 

55,042

 

 

 

67,314

 

Total adjustments related to income from operations

 

 

39,993

 

 

 

34,942

 

Unrealized gain on cost method equity investment

 

 

(4,120

)

 

 

 

Adjusted income before income taxes

 

 

90,915

 

 

 

102,256

 

Non-GAAP tax provision on adjusted income before income taxes

 

 

18,365

 

 

 

20,962

 

Adjusted (non-GAAP) net income

 

$

72,550

 

 

$

81,294

 

 

 

 

 

 

Weighted average basic common shares outstanding

 

 

154,151

 

 

 

155,174

 

Weighted average dilutive potential common shares outstanding 1

 

 

155,807

 

 

 

156,583

 

 

 

 

 

 

Net Income per Common Share

 

 

 

 

GAAP diluted net income per potential common share

 

$

0.29

 

 

$

0.35

 

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

 

$

0.47

 

 

$

0.52

 

                 

1 Weighted average dilutive potential common shares outstanding used in calculating Adjusted (non-GAAP) diluted net income per potential common share for the first quarter of fiscal 2022 includes 1.7 million shares underlying certain stock option and stock unit awards.

Weighted average dilutive potential common shares outstanding used in calculating Adjusted (non-GAAP) diluted net income per potential common share for the first quarter of fiscal 2021 includes 1.4 million shares underlying certain stock option and stock unit awards.

                 
 

APPENDIX B - Calculation of EBITDA and Adjusted EBITDA (unaudited)

(in thousands) (unaudited)

 

 

 

 

 

 

 

Quarter Ended

 

 

January 29,

 

January 30,

 

 

 

2022

 

 

2021

 

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

 

 

 

 

Net income (GAAP)

 

$

45,823

 

$

55,348

 

Add: Interest expense

 

 

8,648

 

 

7,360

 

Less: Interest and other income (loss), net

 

 

3,686

 

 

(1,121

)

Add: Provision for income taxes

 

 

9,219

 

 

11,966

 

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

 

 

23,653

 

 

23,188

 

Add: Amortization of intangible assets

 

 

12,230

 

 

9,642

 

EBITDA

 

$

95,887

 

$

108,625

 

Add: Share-based compensation cost

 

 

24,297

 

 

18,964

 

Add: Significant asset impairments and restructuring costs

 

 

3,409

 

 

5,867

 

Add: Acquisition and integration costs

 

 

68

 

 

307

 

Adjusted EBITDA

 

$

123,661

 

$

133,763

 

               
               

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 and the redesign of business processes.
  • 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 its expected useful life.
  • Acquisition and integration costs -includes financial, legal and accounting advisor expense related to our acquisition of Vyatta during the first quarter of fiscal 2022. Acquisition and integration costs for the first quarter of fiscal 2021 include costs of acquisition compensation associated with a three-year earn-out arrangement related to the DonRiver acquisition in fiscal 2018.
  • Unrealized gain on cost method equity investment - reflects a change in the carrying value of a certain cost method equity investment.
  • 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 20.2% for the first fiscal quarter of 2022 and 20.5% for the first fiscal quarter of 2021. This rate may be subject to change in the future, including as a result of changes in tax policy or tax strategy.

Press:

Jamie Moody
Ciena Corporation
+1 (214) 995-8035
pr@ciena.com

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

Source: Ciena Corporation