[March 05, 2015] |
|
Ciena Reports Fiscal First Quarter 2015 Financial Results
Ciena®
Corporation (NYSE: CIEN), the network specialist, today announced
unaudited financial results for its fiscal first quarter ended
January 31, 2015.
For the fiscal first quarter 2015, Ciena reported revenue of $529.2
million as compared to $533.7 million for the fiscal first quarter 2014.
On the basis of generally accepted accounting principles (GAAP), Ciena's
net loss for the fiscal first quarter 2015 was $(18.8) million, or
$(0.17) per diluted common share, which compares to a GAAP net loss of
$(15.9) million, or $(0.15) per diluted common share, for the fiscal
first quarter 2014.
Ciena's adjusted (non-GAAP) net income for the fiscal first quarter 2015
was $13.6 million, or $0.12 per diluted common share, which compares to
an adjusted (non-GAAP) net income of $13.7 million, or $0.13 per diluted
common share, for the fiscal first quarter 2014.
"Our first quarter performance is highlighted by continued customer
diversification, an expanding portfolio, and strong profitability. While
order timing and foreign exchange headwinds impacted revenue in the
quarter, we delivered improved gross margin and excellent operating
profit," said Gary B. Smith, president and CEO of Ciena. "We are
consistently delivering on our business model and are well positioned to
capitalize on our leadership in driving an open, global network for the
cloud."
Fiscal First Quarter 2015 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
|
|
|
Q1
|
|
Q4
|
|
Q1
|
|
Period Change
|
|
|
FY 2015
|
|
FY 2014
|
|
FY 2014
|
|
Q-T-Q*
|
|
Y-T-Y*
|
Revenue
|
|
$
|
529.2
|
|
|
$
|
591.0
|
|
|
$
|
533.7
|
|
|
(10.5
|
)%
|
|
(0.8
|
)%
|
Gross margin
|
|
43.5
|
%
|
|
37.4
|
%
|
|
42.3
|
%
|
|
6.1
|
%
|
|
1.2
|
%
|
Operating expense
|
|
$
|
226.1
|
|
|
$
|
222.7
|
|
|
$
|
222.5
|
|
|
1.5
|
%
|
|
1.6
|
%
|
Operating margin
|
|
0.8
|
%
|
|
(0.3
|
)%
|
|
0.6
|
%
|
|
1.1
|
%
|
|
0.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Non-GAAP Results
|
|
|
Q1
|
|
Q4
|
|
Q1
|
|
Period Change
|
|
|
FY 2015
|
|
FY 2014
|
|
FY 2014
|
|
Q-T-Q*
|
|
Y-T-Y*
|
Revenue
|
|
$
|
529.2
|
|
|
$
|
591.0
|
|
|
$
|
533.7
|
|
|
(10.5
|
)%
|
|
(0.8
|
)%
|
Adj. gross margin
|
|
44.1
|
%
|
|
37.9
|
%
|
|
43.4
|
%
|
|
6.2
|
%
|
|
0.7
|
%
|
Adj. operating expense
|
|
$
|
197.3
|
|
|
$
|
203.7
|
|
|
$
|
199.8
|
|
|
(3.1
|
)%
|
|
(1.3
|
)%
|
Adj. operating margin
|
|
6.8
|
%
|
|
3.4
|
%
|
|
5.9
|
%
|
|
3.4
|
%
|
|
0.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Revenue by Segment
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|
|
Q1 FY 2015
|
|
Q4 FY 2014
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|
Q1 FY 2014
|
|
|
Revenue
|
|
%
|
|
Revenue
|
|
%
|
|
Revenue
|
|
%
|
Converged Packet Optical
|
|
$
|
336.6
|
|
63.6
|
|
$
|
383.3
|
|
64.9
|
|
$
|
333.4
|
|
62.5
|
Packet Networking
|
|
55.0
|
|
10.4
|
|
56.4
|
|
9.5
|
|
51.7
|
|
9.7
|
Optical Transport
|
|
22.3
|
|
4.2
|
|
26.5
|
|
4.5
|
|
40.1
|
|
7.5
|
Software and Services
|
|
115.3
|
|
21.8
|
|
124.8
|
|
21.1
|
|
108.5
|
|
20.3
|
Total
|
|
$
|
529.2
|
|
100.0
|
|
$
|
591.0
|
|
100.0
|
|
$
|
533.7
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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* Denotes % change, or in the case of margin, absolute change
|
|
Additional Performance Metrics for Fiscal First Quarter 2015
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Revenue by Geographic Region
|
|
|
Q1 FY 2015
|
|
Q4 FY 2014
|
|
Q1 FY 2014
|
|
|
Revenue
|
|
%
|
|
Revenue
|
|
%
|
|
Revenue
|
|
%
|
North America
|
|
331.5
|
|
62.6
|
|
340.5
|
|
57.6
|
|
355.8
|
|
66.7
|
Europe, Middle East and Africa
|
|
111.0
|
|
21.0
|
|
133.7
|
|
22.6
|
|
88.7
|
|
16.6
|
Caribbean and Latin America
|
|
42.8
|
|
8.1
|
|
51.8
|
|
8.8
|
|
52.7
|
|
9.9
|
Asia Pacific
|
|
43.9
|
|
8.3
|
|
65.0
|
|
11.0
|
|
36.5
|
|
6.8
|
Total
|
|
$
|
529.2
|
|
100.0
|
|
$
|
591.0
|
|
100.0
|
|
$
|
533.7
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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-
U.S. customers contributed 56.3% of total revenue
-
One customer accounted for greater than 10% of revenue and represented
22% of total revenue
-
Cash and investments totaled $799.0 million
-
Cash flow from operations totaled $22.1 million
-
Average days' sales outstanding (DSOs) were 87
-
Accounts receivable balance was $513.6 million
-
Inventories totaled $241.1 million, including:
-
Raw materials: $53.9 million
-
Work in process: $9.4 million
-
Finished goods: $159.6 million
-
Deferred cost of sales: $70.2 million
-
Reserve for excess and obsolescence: $(52.0) million
-
Product inventory turns were 3.9
-
Headcount totaled 5,070
Business Outlook for Fiscal Second Quarter 2015
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 the Notes to Investors below.
Ciena expects fiscal second quarter 2015 financial performance to
include:
-
Revenue in the range of $585 to $615 million
-
Adjusted (non-GAAP) gross margin between 42 percent and 43 percent
-
Adjusted (non-GAAP) operating expense to be approximately $210 million
Live Web Broadcast of Unaudited Fiscal First Quarter 2015 Results
Ciena will host a discussion of its unaudited fiscal first quarter 2015
results with investors and financial analysts today, Thursday, March 5,
2014 at 8:30 a.m. (Eastern). The live broadcast of the discussion will
be available via Ciena's homepage at www.ciena.com.
An archived transcript of the discussion 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.
To accompany its live broadcast, Ciena has posted to the Investor
Relations page of its website at www.ciena.com/investors
a presentation that includes certain highlighted information to be
discussed on the call and certain historical results of operations.
Notes to Investors
Forward-looking statements. 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 first quarter performance is highlighted by
continued customer diversification, an expanding portfolio, and strong
profitability"; "While order timing and foreign exchange headwinds
impacted revenue in the quarter, we delivered improved gross margin
and excellent operating profit"; "We are consistently delivering on our
business model and are well positioned to capitalize on our leadership
in driving an open, global network for the cloud"; "Ciena expects fiscal
second quarter 2015 financial performance to include: Revenue in the
range of $585 to $615 million; Adjusted (non-GAAP) gross margin between
42 percent and 43 percent; Adjusted (non-GAAP) operating expense to be
approximately $210 million."
Ciena's actual results, performance or events may differ materially from
these forward-looking statements made or implied due 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-K, which Ciena filed with the Securities and
Exchange Commission on December 19, 2014. 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.
About Ciena. Ciena (NYSE: CIEN) is the network
specialist. We collaborate with customers worldwide to unlock the
strategic potential of their networks and fundamentally change the way
they perform and compete. Ciena leverages its deep expertise in packet
and optical networking and distributed software automation to deliver
solutions in alignment with its OPn architecture for
next-generation networks. We enable a high-scale, programmable
infrastructure that can be controlled and adapted by network-level
applications, and provide open interfaces to coordinate computing,
storage and network resources in a unified, virtualized environment. For
updates on Ciena news, follow us on Twitter @Ciena or on LinkedIn at http://www.linkedin.com/company/ciena.
Investors are encouraged to review the Investors section of our website
at www.ciena.com/investors,
where we routinely post press releases, SEC filings, recent news,
financial results, and other announcements. From time to time we
exclusively post material information to this website along with other
disclosure channels that we use.
|
CIENA CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
Quarter Ended January 31,
|
|
|
2014
|
|
2015
|
Revenue:
|
|
|
|
|
|
|
Products
|
|
$
|
432,941
|
|
|
$
|
422,315
|
|
Services
|
|
100,762
|
|
|
106,847
|
|
Total revenue
|
|
533,703
|
|
|
529,162
|
|
Cost of goods sold:
|
|
|
|
|
|
|
Products
|
|
245,216
|
|
|
236,548
|
|
Services
|
|
62,636
|
|
|
62,319
|
|
Total cost of goods sold
|
|
307,852
|
|
|
298,867
|
|
Gross profit
|
|
225,851
|
|
|
230,295
|
|
Operating expenses:
|
|
|
|
|
|
|
Research and development
|
|
101,497
|
|
|
100,761
|
|
Selling and marketing
|
|
78,348
|
|
|
76,712
|
|
General and administrative
|
|
30,097
|
|
|
29,553
|
|
Amortization of intangible assets
|
|
12,439
|
|
|
11,019
|
|
Restructuring costs
|
|
115
|
|
|
8,085
|
|
Total operating expenses
|
|
222,496
|
|
|
226,130
|
|
Income from operations
|
|
3,355
|
|
|
4,165
|
|
Interest and other income (loss), net
|
|
(5,998
|
)
|
|
(8,233
|
)
|
Interest expense
|
|
(11,028
|
)
|
|
(13,661
|
)
|
Loss before income taxes
|
|
(13,671
|
)
|
|
(17,729
|
)
|
Provision for income taxes
|
|
2,265
|
|
|
1,050
|
|
Net loss
|
|
$
|
(15,936
|
)
|
|
$
|
(18,779
|
)
|
|
|
|
|
|
|
|
Net Loss per Common Share
|
|
|
|
|
|
|
Basic net loss per common share
|
|
$
|
(0.15
|
)
|
|
$
|
(0.17
|
)
|
Diluted net loss per potential common share
|
|
$
|
(0.15
|
)
|
|
$
|
(0.17
|
)
|
|
|
|
|
|
|
|
Weighted average basic common shares outstanding
|
|
104,501
|
|
|
107,773
|
|
Weighted average dilutive potential common shares outstanding
|
|
104,501
|
|
|
107,773
|
|
|
|
|
|
|
|
|
|
CIENA CORPORATION
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands, except share data)
|
(unaudited)
|
|
|
|
|
|
|
|
October 31,
|
|
January 31,
|
|
|
2014
|
|
2015
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
586,720
|
|
|
$
|
598,723
|
|
Short-term investments
|
|
140,205
|
|
|
145,154
|
|
Accounts receivable, net
|
|
518,981
|
|
|
513,554
|
|
Inventories
|
|
254,660
|
|
|
241,118
|
|
Prepaid expenses and other
|
|
192,624
|
|
|
182,818
|
|
Total current assets
|
|
1,693,190
|
|
|
1,681,367
|
|
Long-term investments
|
|
50,057
|
|
|
55,153
|
|
Equipment, furniture and fixtures, net
|
|
126,632
|
|
|
119,403
|
|
Other intangible assets, net
|
|
128,677
|
|
|
115,458
|
|
Other long-term assets
|
|
74,076
|
|
|
84,774
|
|
Total assets
|
|
$
|
2,072,632
|
|
|
$
|
2,056,155
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$
|
209,777
|
|
|
$
|
192,109
|
|
Accrued liabilities
|
|
276,608
|
|
|
289,984
|
|
Deferred revenue
|
|
104,688
|
|
|
106,486
|
|
Current portion of long-term debt
|
|
190,063
|
|
|
190,020
|
|
Total current liabilities
|
|
781,136
|
|
|
778,599
|
|
Long-term deferred revenue
|
|
40,930
|
|
|
46,052
|
|
Other long-term obligations
|
|
45,390
|
|
|
44,596
|
|
Long-term debt, net
|
|
1,274,791
|
|
|
1,275,483
|
|
Total liabilities
|
|
$2,142,247
|
|
|
$2,144,730
|
|
Commitments and contingencies
|
|
|
|
|
Stockholders' equity (deficit):
|
|
|
|
|
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;
106,979,960 and 108,246,661 shares issued and outstanding
|
|
1,070
|
|
|
1,082
|
|
Additional paid-in capital
|
|
5,954,440
|
|
|
5,973,537
|
|
Accumulated other comprehensive loss
|
|
(14,668
|
)
|
|
(33,958
|
)
|
Accumulated deficit
|
|
(6,010,457
|
)
|
|
(6,029,236
|
)
|
Total stockholders' equity (deficit)
|
|
(69,615
|
)
|
|
(88,575
|
)
|
Total liabilities and stockholders' equity (deficit)
|
|
$
|
2,072,632
|
|
|
$
|
2,056,155
|
|
|
|
|
|
|
|
|
|
|
|
CIENA CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
Three Months Ended January 31,
|
|
|
2014
|
|
2015
|
Cash flows provided by (used in) operating activities:
|
|
|
|
|
|
|
Net loss
|
|
$
|
(15,936
|
)
|
|
$
|
(18,779
|
)
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
Depreciation of equipment, furniture and fixtures, and amortization
of leasehold improvements
|
|
13,328
|
|
|
13,772
|
|
Share-based compensation costs
|
|
11,392
|
|
|
10,807
|
|
Amortization of intangible assets
|
|
16,890
|
|
|
13,219
|
|
Provision for inventory excess and obsolescence
|
|
5,439
|
|
|
5,787
|
|
Provision for warranty
|
|
7,974
|
|
|
2,293
|
|
Other
|
|
2,175
|
|
|
(10,689
|
)
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable
|
|
(31,291
|
)
|
|
5,362
|
|
Inventories
|
|
(40,460
|
)
|
|
7,755
|
|
Prepaid expenses and other
|
|
(252
|
)
|
|
(4,473
|
)
|
Accounts payable, accruals and other obligations
|
|
(14,647
|
)
|
|
(9,836
|
)
|
Deferred revenue
|
|
8,230
|
|
|
6,920
|
|
Net cash provided by (used in) operating activities
|
|
(37,158
|
)
|
|
22,138
|
|
Cash flows provided by (used in) investing activities:
|
|
|
|
|
|
|
Payments for equipment, furniture, fixtures and intellectual property
|
|
(15,776
|
)
|
|
(11,194
|
)
|
Restricted cash
|
|
(33
|
)
|
|
-
|
|
Purchase of available for sale securities
|
|
(54,991
|
)
|
|
(50,085
|
)
|
Proceeds from maturities of available for sale securities
|
|
85,000
|
|
|
40,000
|
|
Settlement of foreign currency forward contracts, net
|
|
441
|
|
|
9,314
|
|
Net cash provided by (used in) investing activities
|
|
14,641
|
|
|
(11,965
|
)
|
Cash flows from financing activities:
|
|
|
|
|
|
|
Payment of long term debt
|
|
-
|
|
|
(625
|
)
|
Payment for debt and equity issuance costs
|
|
-
|
|
|
(60
|
)
|
Payment of capital lease obligations
|
|
(762
|
)
|
|
(2,993
|
)
|
Proceeds from issuance of common stock
|
|
7,412
|
|
|
8,302
|
|
Net cash provided by financing activities
|
|
6,650
|
|
|
4,624
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
(536
|
)
|
|
(2,794
|
)
|
Net increase (decrease) in cash and cash equivalents
|
|
(15,867
|
)
|
|
14,797
|
|
Cash and cash equivalents at beginning of period
|
|
346,487
|
|
|
586,720
|
|
Cash and cash equivalents at end of period
|
|
$
|
330,084
|
|
|
$
|
598,723
|
|
Supplemental disclosure of cash flow information
|
|
|
|
|
|
|
Cash paid during the period for interest
|
|
$
|
6,333
|
|
|
$
|
8,754
|
|
Cash paid during the period for income taxes, net
|
|
$
|
4,086
|
|
|
$
|
2,894
|
|
Non-cash investing and financing activities
|
|
|
|
|
|
|
Purchase of equipment in accounts payable
|
|
$
|
4,401
|
|
|
$
|
3,270
|
|
Debt issuance costs in accrued liabilities
|
|
$
|
-
|
|
|
$
|
178
|
|
|
|
|
|
|
|
|
|
|
|
APPENDIX A - Reconciliation of Adjusted (Non- GAAP) Quarterly
Measurements
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
January 31,
|
|
|
2014
|
|
2015
|
Gross Profit Reconciliation
|
|
|
|
|
GAAP gross profit
|
|
$
|
225,851
|
|
|
$
|
230,295
|
|
Share-based compensation-products
|
|
506
|
|
|
487
|
|
Share-based compensation-services
|
|
580
|
|
|
519
|
|
Amortization of intangible assets
|
|
4,451
|
|
|
2,200
|
|
Total adjustments related to gross profit
|
|
5,537
|
|
|
3,206
|
|
Adjusted (non-GAAP) gross profit
|
|
$
|
231,388
|
|
|
$
|
233,501
|
|
Adjusted (non-GAAP) gross profit percentage
|
|
43.4
|
%
|
|
44.1
|
%
|
|
|
|
|
|
Operating Expense Reconciliation
|
|
|
|
|
GAAP operating expense
|
|
$
|
222,496
|
|
|
$
|
226,130
|
|
Share-based compensation-research and development
|
|
2,572
|
|
|
2,167
|
|
Share-based compensation-sales and marketing
|
|
4,063
|
|
|
3,659
|
|
Share-based compensation-general and administrative
|
|
3,506
|
|
|
3,919
|
|
Amortization of intangible assets
|
|
12,439
|
|
|
11,019
|
|
Restructuring costs
|
|
115
|
|
|
8,085
|
|
Total adjustments related to operating expense
|
|
22,695
|
|
|
28,849
|
|
Adjusted (non-GAAP) operating expense
|
|
$
|
199,801
|
|
|
$
|
197,281
|
|
|
|
|
|
|
Income from Operations Reconciliation
|
|
|
|
|
GAAP income from operations
|
|
$
|
3,355
|
|
|
$
|
4,165
|
|
Total adjustments related to gross profit
|
|
5,537
|
|
|
3,206
|
|
Total adjustments related to operating expense
|
|
22,695
|
|
|
28,849
|
|
Adjusted (non-GAAP) income from operations
|
|
$
|
31,587
|
|
|
36,220
|
|
Adjusted (non-GAAP) operating margin percentage
|
|
5.9
|
%
|
|
6.8
|
%
|
|
|
|
|
|
Net Income (Loss) Reconciliation
|
|
|
|
|
GAAP net income (loss)
|
|
$
|
(15,936
|
)
|
|
$
|
(18,779
|
)
|
Total adjustments related to gross profit
|
|
5,537
|
|
|
3,206
|
|
Total adjustments related to operating expense
|
|
22,695
|
|
|
28,849
|
|
Non-cash interest expense
|
|
293
|
|
|
361
|
|
Change in fair value of embedded redemption feature
|
|
1,090
|
|
|
-
|
|
Adjusted (non-GAAP) net income
|
|
$
|
13,679
|
|
|
$
|
13,637
|
|
|
|
|
|
|
Weighted average basic common shares outstanding
|
|
104,501
|
|
|
107,773
|
|
Weighted average dilutive potential common shares outstanding 1
|
|
119,789
|
|
|
121,896
|
|
|
|
|
|
|
Net Income (Loss) per Common Share
|
|
|
|
|
GAAP diluted net income (loss) per common share
|
|
$
|
(0.15
|
)
|
|
$
|
(0.17
|
)
|
Adjusted (non-GAAP) diluted net income per common share 2
|
|
$
|
0.13
|
|
|
$
|
0.12
|
|
|
|
|
|
|
|
|
1.
|
|
Weighted average dilutive potential common shares outstanding used
in calculating Adjusted (non-GAAP) diluted net income per common
share for the first quarter of fiscal 2014 includes 2.2 million
shares underlying certain stock options and restricted stock units,
and 13.1 million shares underlying Ciena's 0.875% convertible senior
notes, due June 15, 2017.
|
|
|
|
|
|
Weighted average dilutive potential common shares outstanding used
in calculating Adjusted (non-GAAP) diluted net income per common
share for the first quarter of fiscal 2015 includes 1.0 million
shares underlying certain stock options and restricted stock units
and 13.1 million shares underlying Ciena's 0.875% convertible senior
notes, due June 15, 2017.
|
|
|
|
2.
|
|
The calculation of Adjusted (non-GAAP) diluted net income per common
share for the fiscal first quarter of 2014 requires adding back
interest expense of approximately $1.4 million associated with
Ciena's 0.875% convertible senior notes, due June 15, 2017 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 first quarter of fiscal 2015 requires adding back
interest expense of approximately $1.4 million associated with
Ciena's 0.875% convertible senior notes, due June 15, 2017 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 expense - a non-cash expense incurred
in accordance with share-based compensation accounting guidance.
-
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. During the fiscal quarter ended January 31,
2015, Ciena recorded a charge of $8.1 million of severance and other
employee-related costs associated with a global workforce reduction of
approximately 125 employees to address organizational realignment and
the reallocation of resources toward strategic growth areas of the
business.
-
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.
-
Change in fair value of embedded redemption feature - a
non-cash unrealized gain or loss reflective of a mark to market fair
value adjustment of an embedded derivative related to the redemption
feature of Ciena's outstanding 4.0% senior convertible notes due March
15, 2015.
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