Information presented and related comments of presenters may contain forward-looking
statements. Forward-looking statement...
 HQ: Hanover, MD
 4,680 employees
 1,000+ customers
 90+ countries
220+ customers
North America CALA EMEA APAC
660+ cu...
Converged packet-optical transport, switching and service delivery platforms
managed and automated by intelligent software...
OPn
Market Share : Increasing
Cost Structure : Transforming
Revenue : Growing
Operating Leverage : Improving
0%
5%
10%
15%
20%
25%
2009 2010 2011 2012 2013
0%
5%
10%
15%
20%
25%
30%
2009 2010 2011 2012 2013
NEXT-GEN NETWORKING1
NOR...
OPTIMIZING OUR SUPPLY CHAIN & PRODUCT COSTS
Build vs. buy on some components and subsystems
Leverage increased volume acro...
-2%
1%
2%
6%
-3%
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
2010 2011 2012 2013
Profitable Growth & Achievement Of Operating Leverage Ke...
Goal Is 30% - 35% Opex/Revenue – At Doorstep In 2H13
46%
43%
40% 39% 39%
39%
36%
(2%) (2%)
4%
2% 2%
5% 6%
-5%
5%
15%
25%
3...
Solid Predictability Since 2H12 In Spite Of Revenue Variability
350
400
450
500
550
600
3Q10
4Q10
1Q11
2Q11
3Q11
4Q11
1Q12...
Revenue Grow Faster Than The Market1
Adj. Gross Margin Low-mid 40s%
Adj. Operating Expense Low-mid 30s%
Adj. Operating Mar...
*Industry Avg include ALU, Cisco, Ericsson, Juniper, ADVA, Infinera and Tellabs
Source: Companies financial statements
0.9...
$540 to $570 million
Low 40s percent range, lower than Q1’14
$210 million range
1 Projections or outlook with respect to f...
Ciena corp
Ciena corp
Ciena corp
Ciena corp
Ciena corp
Ciena corp
Ciena corp
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Ciena corp

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Ciena corp

  1. 1. Information presented and related comments of presenters may contain forward-looking statements. Forward-looking statements include Ciena’s business outlook for future periods as well as 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. These forward looking statements, based on information, expectations, prospects, forecasts and assumptions available to Ciena as of the date of this event, involve inherent risk. Ciena’s actual results could differ materially from those stated, forecasted or implied, due to a number of risks and uncertainties associated with Ciena’s business, operations and markets, including those risk factors disclosed in Ciena’s Form 10-Q filed with the SEC on March 7th, 2014. All information, statements, and projections in this presentation and the related earnings call speak only as of the date of this presentation and related earnings call. Ciena assumes no obligation to update the information presented today, whether as a result of new information, future events or otherwise. In addition, this presentation includes historical, and may include prospective, non-GAAP measures of Ciena’s gross margin, operating expense, operating profit, net income, and net income per share. These measures are not intended to be a substitute for financial information presented in accordance with GAAP. A reconciliation of non-GAAP measures used in this presentation to Ciena’s GAAP results for the relevant period can be found in the Appendix to this presentation.
  2. 2.  HQ: Hanover, MD  4,680 employees  1,000+ customers  90+ countries 220+ customers North America CALA EMEA APAC 660+ customers 60+ customers 90+ customers
  3. 3. Converged packet-optical transport, switching and service delivery platforms managed and automated by intelligent software, and supported by comprehensive service offerings
  4. 4. OPn
  5. 5. Market Share : Increasing Cost Structure : Transforming Revenue : Growing Operating Leverage : Improving
  6. 6. 0% 5% 10% 15% 20% 25% 2009 2010 2011 2012 2013 0% 5% 10% 15% 20% 25% 30% 2009 2010 2011 2012 2013 NEXT-GEN NETWORKING1 NORTH AMERICA NEXT-GEN NETWORKING1 GLOBAL 1.Long-haul WDM + metro WDM + optical switching; Source: Dell’Oro Group, 4Q13 Optical Report
  7. 7. OPTIMIZING OUR SUPPLY CHAIN & PRODUCT COSTS Build vs. buy on some components and subsystems Leverage increased volume across a consolidated supply chain Expand direct order fulfillment IMPROVING BUSINESS EFFICIENCIES Redesign “quote-to-cash” process Sustain DSOs in the low-to-mid 70s Growing revenue faster than operating expenses BUSINESS TRANSFORMATION COST REDUCTIONS
  8. 8. -2% 1% 2% 6% -3% -2% -1% 0% 1% 2% 3% 4% 5% 6% 2010 2011 2012 2013 Profitable Growth & Achievement Of Operating Leverage Key Management Focus Areas Key Drivers
  9. 9. Goal Is 30% - 35% Opex/Revenue – At Doorstep In 2H13 46% 43% 40% 39% 39% 39% 36% (2%) (2%) 4% 2% 2% 5% 6% -5% 5% 15% 25% 35% 45% 55% - 200 400 600 800 1,000 1,200 2H10 1H11 2H11 1H12 2H12 1H13 2H13 Revenue OPEX OPEX (% Rev) Operating Margin % OPEX, OPEX (% Rev), and Operating Margin % are non-GAAP
  10. 10. Solid Predictability Since 2H12 In Spite Of Revenue Variability 350 400 450 500 550 600 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 $MM Revenue Actuals: 1% from Guidance Midpoint Low Guidance High Guidance Actual Revenue
  11. 11. Revenue Grow Faster Than The Market1 Adj. Gross Margin Low-mid 40s% Adj. Operating Expense Low-mid 30s% Adj. Operating Margin 7% - 10% +5% 40.9% 39% 1.9% FY 2012 +14% 42.8% 37% 5.6% FY 2013 Revenue Adj. Gross Margin Adj. Operating Expense Adj. Operating Margin + 2.1 pts - 2 pts + 3.7 pts
  12. 12. *Industry Avg include ALU, Cisco, Ericsson, Juniper, ADVA, Infinera and Tellabs Source: Companies financial statements 0.9 1 1.1 1.2 1.3 1.4 2H10 1H11 2H11 1H12 2H12 1H13 2H13 NormalizedRevenue Ciena Industry Avg 0.8 0.9 1 1.1 1.2 1.3 2H10 1H11 2H11 1H12 2H12 1H13 2H13 NormalizedGrossMargin Ciena Industry Avg 0 1 2 3 4 5 6 7 2H10 1H11 2H11 1H12 2H12 1H13 2H13 NormalizedAdjustedOperatingMargin Ciena Industry Avg
  13. 13. $540 to $570 million Low 40s percent range, lower than Q1’14 $210 million range 1 Projections or outlook with respect to future operating results are only as of March 6, 2014, the date presented on the related earnings call. Ciena assumes no obligation to update this information, whether as a result of new information, future events, or otherwise.
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