Ciena® Corporation (NYSE:CIEN), a networking systems, services
and software company, today announced unaudited financial results
for its fiscal fourth quarter ended October 29, 2022.
- Q4 Revenue: $971.0 million
- Q4 Net Income per Share: $0.39 GAAP; $0.61 adjusted
(non-GAAP)
- Share Repurchases: Repurchased approximately 154,200
shares of common stock for an aggregate price of $8.0 million
during the quarter.
"Our strong fiscal fourth quarter financial results were better
than expected as we benefited from some favorable supply chain
developments in the second half of the quarter," said Gary Smith,
president and CEO of Ciena. "Looking ahead, we expect to deliver
outsized revenue growth in fiscal 2023 given our significant
backlog and continued signs of gradual supply improvement. And, we
remain confident that the durability of secular demand drivers and
our strategic investments to expand our addressable market position
us to deliver strong revenue growth over the next several
years."
For fiscal fourth quarter 2022, Ciena reported revenue of $971.0
million as compared to $1.04 billion for the fiscal fourth quarter
2021. For fiscal year 2022, Ciena reported revenue of $3.63
billion, as compared to $3.62 billion for fiscal year 2021.
Ciena's GAAP net income for the fiscal fourth quarter 2022 was
$57.6 million, or $0.39 per diluted common share, which compares to
a GAAP net income of $103.5 million, or $0.66 per diluted common
share, for the fiscal fourth quarter 2021. For fiscal year 2022,
Ciena's GAAP net income was $152.9 million, or $1.00 per diluted
common share, as compared to GAAP net income of $500.2 million, or
$3.19 per diluted common share, for fiscal year 2021.
Ciena's adjusted (non-GAAP) net income for the fiscal fourth
quarter 2022 was $90.9 million, or $0.61 per diluted common share,
which compares to an adjusted (non-GAAP) net income of $132.7
million, or $0.85 per diluted common share, for the fiscal fourth
quarter 2021. For fiscal year 2022, Ciena's adjusted (non-GAAP) net
income was $288.9 million, or $1.90 per diluted common share, as
compared to adjusted (non-GAAP) net income of $456.5 million, or
$2.91 per diluted common share, for fiscal year 2021.
Performance Summary for Fiscal Fourth Quarter and the Year
Ended October 29, 2022
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)
Quarter Ended
Period
Year Ended
Period
October 29,
October 30,
Change
October 29,
October 30,
Change
2022
2021
Y-T-Y*
2022
2021
Y-T-Y*
Revenue
$
971.0
$
1,041.5
(6.8
) %
$
3,632.7
$
3,620.7
0.3
%
Gross margin
44.7
%
45.8
%
(1.1
) %
43.0
%
47.6
%
(4.6
) %
Operating expense
$
356.3
$
339.7
4.9
%
$
1,337.5
$
1,226.6
9.0
%
Operating margin
8.0
%
13.2
%
(5.2
) %
6.1
%
13.7
%
(7.6
) %
Non-GAAP Results
(unaudited)
Quarter Ended
Period
Year Ended
Period
October 29,
October 30,
Change
October 29,
October 30,
Change
2022
2021
Y-T-Y*
2022
2021
Y-T-Y*
Revenue
$
971.0
$
1,041.5
(6.8
) %
$
3,632.7
$
3,620.7
0.3
%
Adj. gross margin
45.2
%
46.3
%
(1.1
) %
43.6
%
47.9
%
(4.3
) %
Adj. operating expense
$
312.8
$
307.1
1.9
%
$
1,177.0
$
1,129.3
4.2
%
Adj. operating margin
13.0
%
16.8
%
(3.8
) %
11.2
%
16.8
%
(5.6
) %
Adj. EBITDA
$
153.5
$
199.2
(22.9
) %
$
502.4
$
702.8
(28.5
) %
* Denotes % change, or in the case of margin, absolute
change
Revenue by Segment
(unaudited)
Quarter Ended
October 29, 2022
October 30, 2021
Revenue
%**
Revenue
%**
Networking Platforms
Converged Packet Optical
$
649.9
66.9
$
754.6
72.5
Routing and Switching
102.8
10.6
74.2
7.1
Total Networking Platforms
752.7
77.5
828.8
79.6
Platform Software and Services
71.6
7.4
66.1
6.3
Blue Planet Automation Software and
Services
21.2
2.2
19.8
1.9
Global Services
Maintenance Support and Training
73.1
7.5
71.3
6.9
Installation and Deployment
36.9
3.8
47.2
4.5
Consulting and Network Design
15.5
1.6
8.3
0.8
Total Global Services
125.5
12.9
126.8
12.2
Total
$
971.0
100.0
$
1,041.5
100.0
Revenue by Segment
(unaudited)
Year Ended
October 29, 2022
October 30, 2021
Revenue
%**
Revenue
%**
Networking Platforms
Converged Packet Optical
$
2,380.0
65.5
$
2,553.5
70.5
Routing and Switching
398.4
11.0
271.8
7.5
Total Networking Platforms
2,778.4
76.5
2,825.3
78.0
Platform Software and Services
277.2
7.6
229.6
6.4
Blue Planet Automation Software and
Services
76.6
2.1
77.2
2.1
Global Services
Maintenance Support and Training
292.4
8.1
283.4
7.8
Installation and Deployment
157.4
4.3
171.5
4.7
Consulting and Network Design
50.7
1.4
33.7
1.0
Total Global Services
500.5
13.8
488.6
13.5
Total
$
3,632.7
100.0
$
3,620.7
100.0
** Denotes % of total revenue
Additional Performance Metrics for Fiscal Fourth Quarter and
Year Ended October 29, 2022
Revenue by Geographic Region
(unaudited)
Quarter Ended
October 29, 2022
October 30, 2021
Revenue
% **
Revenue
% **
Americas
$
723.5
74.5
$
748.7
71.9
Europe, Middle East and Africa
135.1
13.9
170.8
16.4
Asia Pacific
112.4
11.6
122.0
11.7
Total
$
971.0
100.0
$
1,041.5
100.0
Revenue by Geographic Region
(unaudited)
Year Ended
October 29, 2022
October 30, 2021
Revenue
% **
Revenue
% **
Americas
$
2,636.9
72.6
$
2,525.6
69.8
Europe, Middle East and Africa
555.2
15.3
670.5
18.5
Asia Pacific
440.6
12.1
424.6
11.7
Total
$
3,632.7
100.0
$
3,620.7
100.0
** Denotes % of total revenue
- Two customers each represented 10%-plus of revenue for the
fiscal fourth quarter and fiscal year 2022, combining for a total
of 25.6% of revenue for the fiscal fourth quarter and 23.0% of
revenue for the fiscal year 2022
- Cash and investments at the end of fiscal year 2022 totaled
$1.2 billion
- Cash flow used in operations totaled $14.5 million and $167.8
million for the fiscal fourth quarter and the fiscal year 2022,
respectively
- Average days' sales outstanding (DSOs) were 100 and 107 for the
fiscal fourth quarter and the fiscal year 2022, respectively
- Accounts receivable, net balance was $920.8 million
- Unbilled contract asset, net balance was $156.0 million
- Inventories totaled $946.7 million, including:
- Raw materials: $664.9 million
- Work in process: $18.2 million
- Finished goods: $258.6 million
- Deferred cost of sales: $41.1 million
- Reserve for excess and obsolescence: $(36.1) million
- Product inventory turns were 1.9 and 1.8 for the fiscal fourth
quarter and the fiscal year 2022, respectively
- Headcount totaled 8,079 at the end of fiscal year 2022
Supplemental Materials and Live Web Broadcast of Unaudited
Fiscal Fourth Quarter 2022 Results
Today, Thursday, December 08, 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 fourth quarter and
fiscal year 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: "Our strong
fiscal fourth quarter financial results were better than expected
as we benefited from some favorable supply chain developments in
the second half of the quarter," said Gary Smith, president and CEO
of Ciena. "Looking ahead, we expect to deliver outsized revenue
growth in fiscal 2023 given our significant backlog and continued
signs of gradual supply improvement. And, we remain confident that
the durability of secular demand drivers and our strategic
investments to expand our addressable market position us to deliver
strong revenue growth over the next several years."
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 impact of supply
chain constraints or disruptions; 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; changes in foreign
currency exchange rates; 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, and public health emergencies; 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 its Quarterly Report on Form 10-Q filed with the
SEC on September 7, 2022 and its Annual report on Form 10-K 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
Year Ended
October 29,
October 30,
October 29,
October 30,
2022
2021
2022
2021
Revenue:
Products
$
779,609
$
860,925
$
2,888,848
$
2,932,602
Services
191,401
180,561
743,813
688,082
Total revenue
971,010
1,041,486
3,632,661
3,620,684
Cost of goods sold:
Products
440,253
470,334
1,699,631
1,545,269
Services
97,160
94,033
372,686
353,436
Total cost of goods sold
537,413
564,367
2,072,317
1,898,705
Gross profit
433,597
477,119
1,560,344
1,721,979
Operating expenses:
Research and development
166,898
147,454
624,656
536,666
Selling and marketing
121,865
129,625
466,565
452,214
General and administrative
48,191
49,383
179,382
181,874
Significant asset impairments and
restructuring costs
13,621
5,700
33,824
29,565
Amortization of intangible assets
5,754
5,836
32,511
23,732
Acquisition and integration costs
—
1,712
598
2,572
Total operating expenses
356,329
339,710
1,337,536
1,226,623
Income from operations
77,268
137,409
222,808
495,356
Interest and other income (loss), net
1,887
(168
)
6,747
(1,768
)
Interest expense
(13,775
)
(7,916
)
(47,050
)
(30,837
)
Income before income taxes
65,380
129,325
182,505
462,751
Provision (benefit) for income taxes
7,735
25,826
29,603
(37,445
)
Net income
$
57,645
$
103,499
$
152,902
$
500,196
Net Income per Common Share
Basic net income per common share
$
0.39
$
0.67
$
1.01
$
3.22
Diluted net income per potential common
share
$
0.39
$
0.66
$
1.00
$
3.19
Weighted average basic common shares
outstanding
148,548
155,232
151,208
155,279
Weighted average dilutive potential common
shares outstanding 1
149,111
156,689
152,193
156,743
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)
0.6 million and 1.0 million for the fourth quarter of fiscal 2022
and fiscal 2022, respectively; and (ii) 1.5 million shares for each
of the fourth quarter of fiscal 2021 and fiscal 2021.
CIENA CORPORATION
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands, except share
data)
(unaudited)
October 29, 2022
October 30, 2021
ASSETS
Current assets:
Cash and cash equivalents
$
994,352
$
1,422,546
Short-term investments
153,989
181,483
Accounts receivable, net
920,772
884,958
Inventories
946,730
374,265
Prepaid expenses and other
370,053
325,654
Total current assets
3,385,896
3,188,906
Long-term investments
35,385
70,038
Equipment, building, furniture and
fixtures, net
267,779
284,968
Operating lease right-of-use assets
45,108
44,285
Goodwill
328,322
311,645
Other intangible assets, net
69,517
65,314
Deferred tax asset, net
824,008
800,180
Other long-term assets
113,617
99,891
Total assets
$
5,069,632
$
4,865,227
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
516,047
$
356,176
Accrued liabilities and other short-term
obligations
360,782
409,285
Deferred revenue
137,899
118,007
Operating lease liabilities
18,925
18,632
Current portion of long-term debt
6,930
6,930
Total current liabilities
1,040,583
909,030
Long-term deferred revenue
62,336
57,457
Other long-term obligations
150,335
166,803
Long-term operating lease liabilities
42,392
41,564
Long-term debt, net
1,061,125
670,355
Total liabilities
$
2,356,771
$
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; 148,412,943 and 154,858,981 shares
issued and outstanding
1,484
1,549
Additional paid-in capital
6,390,252
6,803,162
Accumulated other comprehensive income
(loss)
(46,645
)
439
Accumulated deficit
(3,632,230
)
(3,785,132
)
Total stockholders’ equity
2,712,861
3,020,018
Total liabilities and stockholders’
equity
$
5,069,632
$
4,865,227
CIENA CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Year Ended
October 29,
October 30,
2022
2021
Cash flows provided by (used in) operating
activities:
Net income
$
152,902
$
500,196
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
95,922
96,233
Share-based compensation expense
105,131
84,336
Amortization of intangible assets
44,281
36,033
Deferred taxes
(27,502
)
(156,469
)
Provision for inventory excess and
obsolescence
16,184
17,850
Provision for warranty
17,440
17,093
Other
—
14,525
Changes in assets and liabilities:
Accounts receivable
(47,069
)
(174,377
)
Inventories
(589,113
)
(47,567
)
Prepaid expenses and other
(58,996
)
(19,691
)
Operating lease right-of-use assets
16,453
16,632
Accounts payable, accruals and other
obligations
100,327
162,134
Deferred revenue
26,380
16,822
Short and long-term operating lease
liabilities
(20,096
)
(22,104
)
Net cash provided by (used in) operating
activities
(167,756
)
541,646
Cash flows used in investing
activities:
Payments for equipment, furniture,
fixtures and intellectual property
(90,818
)
(79,550
)
Purchase of available for sale
securities
(643,971
)
(172,778
)
Proceeds from maturities of available for
sale securities
698,642
152,253
Settlement of foreign currency forward
contracts, net
4,942
4,680
Acquisition of business, net of cash
acquired
(62,043
)
—
Purchase of cost method equity
investments
(8,000
)
—
Proceeds from sale of cost method equity
investments
—
4,678
Net cash used in investing activities
(101,248
)
(90,717
)
Cash flows used in financing
activities:
Proceeds from issuance of senior notes
400,000
—
Payment of long term debt
(5,197
)
(6,929
)
Payment of debt issuance costs
(5,484
)
—
Payment of finance lease obligations
(3,468
)
(3,004
)
Shares repurchased for tax withholdings on
vesting of stock unit awards
(48,454
)
(44,071
)
Repurchases of common stock - repurchase
program
(500,800
)
(91,288
)
Proceeds from issuance of common stock
30,348
28,457
Net cash used in financing activities
(133,055
)
(116,835
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(26,167
)
(198
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
(428,226
)
333,896
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
$
994,378
$
1,422,604
Supplemental disclosure of cash flow
information
Cash paid during the period for
interest
$
42,812
$
29,864
Cash paid during the period for income
taxes, net
$
34,967
$
73,127
Operating lease payments
$
21,661
$
24,058
Non-cash investing and financing
activities
Purchase of equipment in accounts
payable
$
12,373
$
10,138
Repurchase of common stock in accrued
liabilities from repurchase program
$
—
$
800
Operating right-of-use assets subject to
lease liability
$
23,242
$
4,356
Unrealized gain on equity investment
$
4,120
$
—
APPENDIX A - Reconciliation of
Adjusted (Non- GAAP) Measurements
(in thousands, except per
share data) (unaudited)
Quarter Ended
Year Ended
October 29,
October 30,
October 29,
October 30,
2022
2021
2022
2021
Gross Profit Reconciliation
(GAAP/non-GAAP)
GAAP gross profit
$
433,597
$
477,119
$
1,560,344
$
1,721,979
Share-based compensation-products
907
920
3,867
3,408
Share-based compensation-services
2,066
1,240
7,533
5,181
Canadian Emergency Wage
Subsidy-products
—
—
—
(4,283
)
Canadian Emergency Wage
Subsidy-services
—
—
—
(2,667
)
Amortization of intangible assets
2,005
2,856
11,770
12,301
Total adjustments related to gross
profit
4,978
5,016
23,170
13,940
Adjusted (non-GAAP) gross profit
$
438,575
$
482,135
$
1,583,514
$
1,735,919
Adjusted (non-GAAP) gross profit
percentage
45.2
%
46.3
%
43.6
%
47.9
%
Operating Expense Reconciliation
(GAAP/non-GAAP)
GAAP operating expense
$
356,329
$
339,710
$
1,337,536
$
1,226,623
Share-based compensation-research and
development
8,507
5,684
31,879
21,863
Share-based compensation-sales and
marketing
8,084
6,192
31,280
25,152
Share-based compensation-general and
administrative
7,610
7,466
30,435
28,804
Canadian Emergency Wage Subsidy-research
and development
—
—
—
(29,519
)
Canadian Emergency Wage Subsidy-sales and
marketing
—
—
—
(2,604
)
Canadian Emergency Wage Subsidy-general
and administrative
—
—
—
(2,207
)
Significant asset impairments and
restructuring costs
13,621
5,700
33,824
29,565
Amortization of intangible assets
5,754
5,836
32,511
23,732
Acquisition and integration costs
—
1,712
598
2,572
Total adjustments related to operating
expense
43,576
32,590
160,527
97,358
Adjusted (non-GAAP) operating expense
$
312,753
$
307,120
$
1,177,009
$
1,129,265
Income from Operations Reconciliation
(GAAP/non-GAAP)
GAAP income from operations
$
77,268
$
137,409
$
222,808
$
495,356
Total adjustments related to gross
profit
4,978
5,016
23,170
13,940
Total adjustments related to operating
expense
43,576
32,590
160,527
97,358
Total adjustments related to income from
operations
48,554
37,606
183,697
111,298
Adjusted (non-GAAP) income from
operations
$
125,822
$
175,015
$
406,505
$
606,654
Adjusted (non-GAAP) operating margin
percentage
13.0
%
16.8
%
11.2
%
16.8
%
Net Income Reconciliation
(GAAP/non-GAAP)
GAAP net income
$
57,645
$
103,499
$
152,902
$
500,196
Exclude GAAP provision (benefit) for
income taxes
7,735
25,826
29,603
(37,445
)
Income before income taxes
65,380
129,325
182,505
462,751
Total adjustments related to income from
operations
48,554
37,606
183,697
111,298
Unrealized (gain) loss on cost method
equity investment
—
—
(4,120
)
165
Adjusted income before income taxes
113,934
166,931
362,082
574,214
Non-GAAP tax provision on adjusted income
before income taxes
23,015
34,221
73,141
117,714
Adjusted (non-GAAP) net income
$
90,919
$
132,710
$
288,941
$
456,500
Weighted average basic common shares
outstanding
148,548
155,232
151,208
155,279
Weighted average dilutive potential common
shares outstanding 1
149,111
156,689
152,193
156,743
Net Income per Common Share
GAAP diluted net income per potential
common share
$
0.39
$
0.66
$
1.00
$
3.19
Adjusted (non-GAAP) diluted net income per
potential common share
$
0.61
$
0.85
$
1.90
$
2.91
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) 0.6 million and 1.0 million for the fourth
quarter of fiscal 2022 and fiscal 2022, respectively; and (ii) 1.5
million each for the fourth quarter of fiscal 2021 and fiscal
2021.
APPENDIX B - Calculation of
EBITDA and Adjusted EBITDA (unaudited)
(in thousands)
(unaudited)
Quarter Ended
Year Ended
October 29,
October 30,
October 29,
October 30,
2022
2021
2022
2021
Earnings Before Interest, Tax,
Depreciation and Amortization (EBITDA)
Net income (GAAP)
$
57,645
$
103,499
$
152,902
$
500,196
Add: Interest expense
13,775
7,916
47,050
30,837
Less: Interest and other income (loss),
net
1,887
(168
)
6,747
(1,768
)
Add: Provision (benefit) for income
taxes
7,735
25,826
29,603
(37,445
)
Add: Depreciation of equipment, building,
furniture and fixtures, and amortization of leasehold
improvements
27,642
24,315
95,922
96,233
Add: Amortization of intangible assets
7,759
8,692
44,281
36,033
EBITDA
$
112,669
$
170,416
$
363,011
$
627,622
Less: Canadian Emergency Wage Subsidy
—
—
—
41,280
Add: Share-based compensation cost
27,174
21,366
104,994
84,336
Add: Significant asset impairments and
restructuring costs
13,621
5,700
33,824
29,565
Add: Acquisition and integration costs
—
1,712
598
2,572
Adjusted EBITDA
$
153,464
$
199,194
$
502,427
$
702,815
* * *
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.
- Canadian Emergency Wage Subsidy - a program introduced by the
Government of Canada to offset a portion of employee wages for a
limited period in response to COVID-19 outbreak.
- 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, in fiscal 2022, a $3.8 million impairment
charge due to Ciena's decision to suspend its business operations
in Russia in response to the conflict in Ukraine.
- 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 expenses related to our acquisition activity
in fiscal 2022. Acquisition and integration costs for 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)loss 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 fiscal quarter 2022
and 20.5% for fiscal quarter 2021. 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/20221207005956/en/
Press: Jamie Moody Ciena Corporation +1 (214) 995-8035
pr@ciena.com Investor: Gregg Lampf Ciena Corporation +1 (410)
694-5700 ir@ciena.com
Ciena (NYSE:CIEN)
Historical Stock Chart
From Mar 2023 to Mar 2023
Ciena (NYSE:CIEN)
Historical Stock Chart
From Mar 2022 to Mar 2023
