Ciena Reports Fiscal Third Quarter 2017 Financial Results

August 31, 2017 at 8:00 AM EDT

Delivers 9% revenue growth year-over-year

HANOVER, Md.--(BUSINESS WIRE)--Aug. 31, 2017-- Ciena® Corporation (NYSE: CIEN), a network strategy and technology company, today announced unaudited financial results for its fiscal third quarter ended July 31, 2017.

For the fiscal third quarter 2017, Ciena reported revenue of $728.7 million as compared to $670.6 million for the fiscal third quarter 2016.

On the basis of generally accepted accounting principles (GAAP), Ciena's net income for the fiscal third quarter 2017 was $60.0 million, or $0.39 per diluted common share, which compares to a GAAP net income of $33.5 million, or $0.23 per diluted common share, for the fiscal third quarter 2016.

Ciena's adjusted (non-GAAP) net income for the fiscal third quarter 2017 was $81.0 million, or $0.51 per diluted common share, which compares to an adjusted (non-GAAP) net income of $67.6 million, or $0.42 per diluted common share, for the fiscal third quarter 2016.

“We delivered another solid quarter with strong revenue growth and profitability, and we took additional market share through our diversification and innovation leadership,” said Gary B. Smith, president and CEO, Ciena. “Our continued success, combined with strong fundamental demand drivers that are playing in our favor, is drawing a clear division between the winners and losers in the marketplace.”

Fiscal Third Quarter 2017 Performance Summary

The tables below (in millions, except percentage data) provide comparisons of certain quarterly results to prior periods, including sequential quarter and year-over-year changes. A reconciliation between the GAAP and adjusted (non-GAAP) measures contained in this release is included in Appendix A.

     
    GAAP Results
    Q3   Q2   Q3   Period Change
    FY 2017   FY 2017   FY 2016   Q-T-Q*   Y-T-Y*
Revenue   $ 728.7     $ 707.0     $ 670.6     3.1 %   8.7 %
Gross margin     45.0 %     45.0 %     46.0 %   %   (1.0 )%
Operating expense   $ 246.1     $ 260.4     $ 251.5     (5.5 )%   (2.1 )%
Operating margin     11.3 %     8.2 %     8.5 %   3.1 %   2.8 %
     
    Non-GAAP Results
    Q3   Q2   Q3   Period Change
    FY 2017   FY 2017   FY 2016   Q-T-Q*   Y-T-Y*
Revenue   $ 728.7     $ 707.0     $ 670.6     3.1 %   8.7 %
Adj. gross margin     45.5 %     45.7 %     46.8 %   (0.2 )%   (1.3 )%
Adj. operating expense   $ 229.3     $ 234.6     $ 223.4     (2.3 )%   2.6 %
Adj. operating margin     14.1 %     12.5 %     13.5 %   1.6 %   0.6 %
                     

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

     
    Revenue by Segment
    Q3 FY 2017   Q2 FY 2017   Q3 FY 2016
    Revenue   %**   Revenue   %**   Revenue   %**
Networking Platforms                        
Converged Packet Optical   $ 506.5   69.5   $ 502.1   71.0   $ 467.6   69.7
Packet Networking     82.1   11.3     66.4   9.4     63.7   9.5
Optical Transport     3.7   0.5     3.0   0.4     9.6   1.4
Total Networking Platforms     592.3   81.3     571.5   80.8     540.9   80.6
                         
Software and Software-Related Services                        
Software Platforms     18.4   2.5     13.1   1.9     12.6   1.9
Software-Related Services     23.9   3.3     24.6   3.5     19.0   2.8
Total Software and Software-Related Services     42.3   5.8     37.7   5.4     31.6   4.7
                         
Global Services                        
Maintenance Support and Training     57.9   7.9     58.2   8.2     56.0   8.4
Installation and Deployment     27.4   3.8     28.7   4.1     31.2   4.7
Consulting and Network Design     8.8   1.2     10.9   1.5     10.9   1.6
Total Global Services     94.1   12.9     97.8   13.8     98.1   14.7
                         
Total   $ 728.7   100.0   $ 707.0   100.0   $ 670.6   100.0
                         

Additional Performance Metrics for Fiscal Third Quarter 2017

     
    Revenue by Geographic Region
    Q3 FY 2017   Q2 FY 2017   Q3 FY 2016
    Revenue   % **   Revenue   % **   Revenue   % **
North America   $ 465.2   63.8   $ 424.4   60.0   $ 438.0   65.3
Europe, Middle East and Africa     96.1   13.2     105.8   15.0     104.3   15.5
Caribbean and Latin America     51.7   7.1     33.9   4.8     46.6   7.0
Asia Pacific     115.7   15.9     142.9   20.2     81.7   12.2
Total   $ 728.7   100.0   $ 707.0   100.0   $ 670.6   100.0
                         

** Denotes % of total revenue

  • U.S. customers contributed 60.1% of total revenue
  • Two customers each accounted for greater than 10% of revenue and in aggregate represented 28% of total revenue
  • Cash and investments totaled $854.2 million
  • Cash flow from operations totaled $50.6 million
  • Average days' sales outstanding (DSOs) were 81
  • Accounts receivable balance was $653.2 million
  • Inventories totaled $276.4 million, including:
    • Raw materials: $46.9 million
    • Work in process: $16.2 million
    • Finished goods: $179.4 million
    • Deferred cost of sales: $90.1 million
    • Reserve for excess and obsolescence: $(56.2) million
  • Product inventory turns were 4.9
  • Headcount totaled 5,780

Business Outlook for Fiscal Fourth Quarter 2017

Statements relating to business outlook are forward-looking in nature and actual results may differ materially. These statements should be read in the context of each of the "Forward-Looking Statements" and "Non-GAAP Presentation of Quarterly Results" found in the Notes to Investors below.

Ciena expects fiscal fourth quarter 2017 financial performance to include:

  • Revenue in the range of $720 to $750 million
  • Adjusted (non-GAAP) gross margin in the mid-40s percentage range
  • Adjusted (non-GAAP) operating expense of approximately $240 million

Live Web Broadcast of Unaudited Fiscal Third Quarter 2017 Results

Ciena will host a discussion of its unaudited fiscal third quarter 2017 results with investors and financial analysts today, Thursday, August 31, 2017 at 8:30 a.m. (Eastern). The live broadcast will be available at www.ciena.com, and an archived replay will be available shortly following the conclusion of the live broadcast on the Investor Relations page of Ciena's website at www.ciena.com/investors. Ciena will also post to the Investor Relations page a presentation that includes certain highlighted information discussed on the call and certain historical results of operations.

Notes to Investors

Forward-Looking Statements. You are encouraged to review the Investors section of our website, where we routinely post press releases, 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 another solid quarter with strong revenue growth and profitability, and we took additional market share through our diversification and innovation leadership"; "Our continued success, combined with strong fundamental demand drivers that are playing in our favor, is drawing a clear division between the winners and losers in the marketplace"; "Ciena expects fiscal fourth quarter 2017 financial performance to include: Revenue in the range of $720 to $750 million; Adjusted (non-GAAP) gross margin in the mid-40s percentage range; Adjusted (non-GAAP) operating expense of approximately $240 million."

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; changes in network spending or network strategy by large communication service providers; 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 disruptions and the level of success relating to efforts to optimize Ciena's operations; changes in foreign currency exchange rates affecting revenue and operating expense; and the other risk factors disclosed in Ciena's Report on Form 10-Q, which Ciena filed with the Securities and Exchange Commission on June 7, 2017. Ciena assumes no obligation to update any forward-looking information included in this press release.

Non-GAAP Presentation of Quarterly Results. This release includes non-GAAP measures of Ciena's gross profit, operating expense, income (loss) from operations, net income (loss) and net income (loss) 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, Appendix A to this press release sets forth a complete GAAP to non-GAAP reconciliation of the non-GAAP measures contained in this release.

With respect to Ciena’s expectations under “Business Outlook for Fiscal Fourth Quarter 2017” above, Ciena is not able to provide a quantitative reconciliation of the adjusted (non-GAAP) gross margin and adjusted (non-GAAP) operating expense guidance measures to the corresponding gross profit and gross profit percentage, and operating expense GAAP measures without unreasonable efforts. Ciena cannot provide meaningful estimates of the non-recurring charges and credits excluded from these non-GAAP measures due to the forward-looking nature of these estimates and their inherent variability and uncertainty. For the same reasons, Ciena is unable to address the probable significance of the unavailable information.

About Ciena

Ciena (NYSE: CIEN) is a network strategy and technology company. We translate best-in-class technology into value through a high-touch, consultative business model - with a relentless drive to create exceptional experiences measured by outcomes. 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 July 31,   Nine Months Ended July 31,
    2017   2016   2017   2016
Revenue:                
Products   $ 610,742     $ 553,450     $ 1,702,365     $ 1,535,017  
Services     117,977       117,100       354,873       349,365  
Total revenue     728,719       670,550       2,057,238       1,884,382  
Cost of goods sold:                
Products     341,197       299,381       955,303       851,641  
Services     59,446       62,684       181,834       189,713  
Total cost of goods sold     400,643       362,065       1,137,137       1,041,354  
Gross profit     328,076       308,485       920,101       843,028  
Operating expenses:                
Research and development     117,729       116,697       356,221       339,346  
Selling and marketing     86,739       83,732       260,292       252,878  
General and administrative     35,569       34,336       106,423       100,681  
Amortization of intangible assets     3,837       14,529       29,368       46,957  
Acquisition and integration costs           1,029             4,613  
Restructuring costs     2,203       1,138       8,874       2,057  
Total operating expenses     246,077       251,461       761,178       746,532  
Income from operations     81,999       57,024       158,923       96,496  
Interest and other income (loss), net     (848 )     (3,647 )     (3,396 )     (11,456 )
Interest expense     (13,415 )     (15,967 )     (41,926 )     (41,285 )
Income before income taxes     67,736       37,410       113,601       43,755  
Provision for income taxes     7,726       3,864       11,704       7,758  
Net income   $ 60,010     $ 33,546     $ 101,897     $ 35,997  
                 
Net Income per Common Share                
Basic net income per common share   $ 0.42     $ 0.24     $ 0.72     $ 0.26  
Diluted net income per potential common share1   $ 0.39     $ 0.23     $ 0.69     $ 0.26  
                 
Weighted average basic common shares outstanding     142,464       138,881       141,631       137,835  
Weighted average dilutive potential common shares outstanding2     172,112       169,349       164,431       139,053  
     
1.   The calculation of GAAP diluted net income per common share for the third quarter of fiscal 2017 requires adding back interest expense of approximately $0.2 million associated with Ciena's 0.875% convertible senior notes, which were paid at maturity during the third quarter of fiscal 2017, approximately $3.6 million associated with Ciena's 3.75% convertible senior notes, due October 15, 2018, and approximately $3.3 million associated with Ciena's 4.0% convertible senior notes, due December 15, 2020 to the GAAP net income in order to derive the numerator for the Adjusted earnings per common share calculation.
     
    The calculation of GAAP diluted net income per common share for the first nine months of fiscal 2017 requires adding back interest expense of approximately $1.3 million associated with Ciena's 0.875% convertible senior notes, which were paid at maturity during the third quarter of fiscal 2017, and approximately $10.8 million associated with Ciena's 3.75% convertible senior notes, due October 15, 2018 to the GAAP net income in order to derive the numerator for the Adjusted earnings per common share calculation.
     
    The calculation of GAAP diluted net income per common share for the third quarter of fiscal 2016 requires adding back interest expense of approximately $1.3 million associated with Ciena's 0.875% convertible senior notes, which were paid at maturity during the third quarter of fiscal 2017, and approximately $3.6 million associated with Ciena's 3.75% convertible senior notes, due October 15, 2018 to the GAAP net income in order to derive the numerator for the diluted earnings per common share calculation.
     
2.   Weighted average dilutive potential common shares outstanding used in calculating GAAP diluted net income per common share for the third quarter of fiscal 2017 includes 1.4 million shares underlying certain stock options and restricted stock units, 1.7 million shares underlying Ciena's 0.875% convertible senior notes, which were paid at maturity during the third quarter of fiscal 2017, 17.4 million shares underlying Ciena's 3.75% convertible senior notes, due October 15, 2018, and 9.2 million shares underlying Ciena's 4.0% convertible senior notes, due December 15, 2020.
     
    Weighted average dilutive potential common shares outstanding used in calculating GAAP diluted net income per common share for the first nine months of fiscal 2017 includes 1.4 million shares underlying certain stock options and restricted stock units, 4.0 million shares underlying Ciena's 0.875% convertible senior notes, which were paid at maturity during the third quarter of fiscal 2017, and 17.4 million shares underlying Ciena's 3.75% convertible senior notes, due October 15, 2018.
     
    Weighted average dilutive potential common shares outstanding used in calculating GAAP diluted net income per common share for the third quarter of fiscal 2016 includes 0.9 million shares underlying certain stock options and restricted stock units, 12.2 million shares underlying Ciena's 0.875% convertible senior notes, which were paid at maturity during the third quarter of fiscal 2017 and 17.4 million shares underlying Ciena's 3.75% convertible senior notes, due October 15, 2018.
     
    Weighted average dilutive potential common shares outstanding used in calculating GAAP diluted net income per common share for the first nine months of fiscal 2016 includes 1.2 million shares underlying certain stock options and restricted stock units.
     
 
CIENA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
         
   

July 31,
2017

 

October 31,
2016

ASSETS        
Current assets:        
Cash and cash equivalents   $ 559,540     $ 777,615  
Short-term investments     234,743       275,248  
Accounts receivable, net     653,242       576,235  
Inventories     276,421       211,251  
Prepaid expenses and other     199,189       172,843  
Total current assets     1,923,135       2,013,192  
Long-term investments     59,874       90,172  
Equipment, building, furniture and fixtures, net     314,850       288,406  
Goodwill     267,841       266,974  
Other intangible assets, net     106,990       146,711  
Other long-term assets     63,970       68,120  
Total assets   $ 2,736,660     $ 2,873,575  
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Current liabilities:        
Accounts payable   $ 258,358     $ 235,942  
Accrued liabilities and other short-term obligations     284,629       310,353  
Deferred revenue     110,629       109,009  
Current portion of long-term debt     4,000       236,241  
Total current liabilities     657,616       891,545  
Long-term deferred revenue     86,898       73,854  
Other long-term obligations     116,534       124,394  
Long-term debt, net     931,302       1,017,441  
Total liabilities   $ 1,792,350     $ 2,107,234  
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; 142,672,784 and 139,767,627 shares issued and outstanding

    1,427       1,398  
Additional paid-in capital     6,772,687       6,715,478  
Accumulated other comprehensive loss     (5,495 )     (24,329 )
Accumulated deficit     (5,824,309 )     (5,926,206 )
Total stockholders’ equity     944,310       766,341  
Total liabilities and stockholders’ equity   $ 2,736,660     $ 2,873,575  
                 
 
CIENA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
     
    Nine Months Ended July 31,
    2017   2016
Cash flows provided by operating activities:        
Net income   $ 101,897     $ 35,997  
Adjustments to reconcile net income to net cash provided by operating activities:        
Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements     55,873       46,624  
Share-based compensation costs     36,843       41,832  
Amortization of intangible assets     39,721       59,428  
Provision for inventory excess and obsolescence     28,727       26,663  
Provision for warranty     5,188       13,114  
Other     21,076       15,706  
Changes in assets and liabilities:        
Accounts receivable     (80,652 )     (37,768 )
Inventories     (93,896 )     (56,267 )
Prepaid expenses and other     (26,450 )     16,687  
Accounts payable, accruals and other obligations     (5,960 )     (5,087 )
Deferred revenue     13,978       (4,120 )
Net cash provided by operating activities     96,345       152,809  
Cash flows used in investing activities:        
Payments for equipment, furniture, fixtures and intellectual property     (76,004 )     (81,161 )
Purchase of available for sale securities     (189,802 )     (340,168 )
Proceeds from maturities of available for sale securities     260,003       160,606  
Settlement of foreign currency forward contracts, net     (1,619 )     (9,982 )
Acquisition of business, net of cash acquired           (32,000 )
Net cash used in investing activities     (7,422 )     (302,705 )
Cash flows provided by (used in) financing activities:        
Proceeds from issuance of term loan, net           248,750  
Payment of long term debt     (232,554 )     (45,990 )
Payment for modification of term loans     (93,625 )      
Payment of debt issuance costs           (3,980 )
Payment of capital lease obligations     (2,650 )     (5,359 )
Proceeds from issuance of common stock     20,395       22,118  
Net cash provided by (used in) financing activities     (308,434 )     215,539  
Effect of exchange rate changes on cash and cash equivalents     1,436       (1,696 )
Net increase (decrease) in cash and cash equivalents     (218,075 )     63,947  
Cash and cash equivalents at beginning of period     777,615       790,971  
Cash and cash equivalents at end of period   $ 559,540     $ 854,918  
Supplemental disclosure of cash flow information        
Cash paid during the period for interest   $ 33,861     $ 31,787  
Cash paid during the period for income taxes, net   $ 26,793     $ 9,947  
Non-cash investing activities        
Purchase of equipment in accounts payable   $ 6,012     $ 10,204  
Equipment acquired under capital lease   $     $ 5,322  
Building subject to capital lease   $ 50,370     $ 8,993  
Construction in progress subject to build-to-suit lease   $     $ 35,875  
                 
     

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

         
    Quarter Ended July 31,
    2017   2016
Gross Profit Reconciliation        
GAAP gross profit   $ 328,076     $ 308,485  
Share-based compensation-products     709       645  
Share-based compensation-services     619       637  
Amortization of intangible assets     2,417       4,328  
Total adjustments related to gross profit     3,745       5,610  
Adjusted (non-GAAP) gross profit   $ 331,821     $ 314,095  
Adjusted (non-GAAP) gross profit percentage     45.5 %     46.8 %
         
Operating Expense Reconciliation        
GAAP operating expense   $ 246,077     $ 251,461  
Share-based compensation-research and development     3,139       3,479  
Share-based compensation-sales and marketing     3,242       3,590  
Share-based compensation-general and administrative     4,321       4,284  
Acquisition and integration costs, excluding share-based compensation           1,029  
Amortization of intangible assets     3,837       14,529  
Restructuring costs     2,203       1,138  
Total adjustments related to operating expense     16,742       28,049  
Adjusted (non-GAAP) operating expense   $ 229,335     $ 223,412  
         
Income from Operations Reconciliation        
GAAP income from operations   $ 81,999     $ 57,024  
Total adjustments related to gross profit     3,745       5,610  
Total adjustments related to operating expense     16,742       28,049  
Adjusted (non-GAAP) income from operations   $ 102,486     $ 90,683  
Adjusted (non-GAAP) operating margin percentage     14.1 %     13.5 %
         
Net Income Reconciliation        
GAAP net income   $ 60,010     $ 33,546  
Total adjustments related to gross profit     3,745       5,610  
Total adjustments related to operating expense     16,742       28,049  
Gain on extinguishment of debt           (44 )
Non-cash interest expense     535       480  
Adjusted (non-GAAP) net income   $ 81,032     $ 67,641  
         
Weighted average basic common shares outstanding     142,464       138,881  
Weighted average dilutive potential common shares outstanding 1     172,112       178,547  
         
Net Income per Common Share        
GAAP diluted net income per common share   $ 0.39     $ 0.23  
Adjusted (non-GAAP) diluted net income per common share 2   $ 0.51     $ 0.42  
                 
     
1.   Weighted average dilutive potential common shares outstanding used in calculating Adjusted (non-GAAP) diluted net income per common share for the third quarter of fiscal 2017 includes 1.4 million shares underlying certain stock options and restricted stock units, 1.7 million shares underlying Ciena's 0.875% convertible senior notes, which were paid at maturity during the third quarter of fiscal 2017, 17.4 million shares underlying Ciena's 3.75% convertible senior notes, due October 15, 2018 and 9.2 million shares underlying Ciena's 4.0% convertible senior notes, due December 15, 2020.
     
    Weighted average dilutive potential common shares outstanding used in calculating Adjusted (non-GAAP) diluted net income per common share for the third quarter of fiscal 2016 includes 0.9 million shares underlying certain stock options and restricted stock units, 12.2 million shares underlying Ciena's 0.875% convertible senior notes, which were paid at maturity during the third quarter of fiscal 2017, 17.4 million shares underlying Ciena's 3.75% convertible senior notes, due October 15, 2018 and 9.2 million shares underlying Ciena's 4.0% convertible senior notes, due December 15, 2020.
     
2.   The calculation of Adjusted (non-GAAP) diluted net income per common share for the third quarter of fiscal 2017 requires adding back interest expense of approximately $0.2 million associated with Ciena's 0.875% convertible senior notes, which were paid at maturity during the third quarter of fiscal 2017, approximately $3.6 million associated with Ciena's 3.75% convertible senior notes, due October 15, 2018 and approximately $2.8 million associated with Ciena's 4.0% convertible senior notes, due December 15, 2020 to the Adjusted (non-GAAP) net income in order to derive the numerator for the Adjusted earnings per common share calculation.
     
    The calculation of Adjusted (non-GAAP) diluted net income per common share for the third quarter of fiscal 2016 requires adding back interest expense of approximately $1.3 million associated with Ciena's 0.875% convertible senior notes, which were paid at maturity during the third quarter of fiscal 2017, approximately $3.6 million associated with Ciena's 3.75% convertible senior notes, due October 15, 2018 and approximately $2.9 million associated with Ciena's 4.0% convertible senior notes, due December 15, 2020 to the Adjusted (non-GAAP) net income in order to derive the numerator for the Adjusted earnings per common share calculation.
     

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.
  • Acquisition and integration costs - consist of expenses for financial, legal and accounting advisors and severance and other employee related costs, associated with our acquisition of Cyan, Inc. on August 3, 2015 and our acquisition of certain high-speed photonic component assets from TeraXion, Inc. on February 1, 2016. Ciena does not believe that these costs are reflective of its ongoing operating expense following its completion of these integration activities.
  • 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.
  • Restructuring costs - costs incurred as a result of restructuring activities taken to align resources with perceived market opportunities.
  • Gain on extinguishment of debt - a gain related to certain private repurchases conducted with several holders of Ciena's 0.875% convertible senior notes, which were paid at maturity on June 15, 2017.
  • Non-cash interest expense - a non-cash debt discount expense amortized as interest expense during the term of Ciena's 4.0% senior convertible notes due December 15, 2020 relating to the required separate accounting of the equity component of these convertible notes.

 

Source: Ciena Corporation

Ciena Corporation
Press Contact:
Nicole Anderson, 877-857-7377
pr@ciena.com
or
Investor Contact:
Gregg Lampf, 877-243-6273
ir@ciena.com