June 09, 2019 - Dubai, UAE

HANOVER, Md.--(BUSINESS WIRE)-- Ciena® Corporation (NYSE: CIEN), a networking systems, services and software company, today announced unaudited financial results for its fiscal second quarter ended April 30, 2019.

• Q2 Revenue: $865.0 million, increasing 18.5% year over year
• Q2 Net Income per Share: $0.33 GAAP; $0.48 adjusted (non-GAAP)
• Share Repurchases: Repurchased approximately 1.2 million shares of common stock for an aggregate price of $45.4 million during the quarter

'Today we reported very strong quarterly performance, including continued market share gains, driven by our technology leadership and diversified customer base in high growth markets,' said Gary Smith, President and CEO, Ciena. 'We are entering the second half with strong visibility and increased confidence for the full fiscal year supported by favorable industry dynamics and growing competitive advantage.'

For the fiscal second quarter 2019, Ciena reported revenue of $865.0 million as compared to $730.0 million for the fiscal second quarter 2018.

Ciena's GAAP net income for the fiscal second quarter 2019 was $52.7 million, or $0.33 per diluted common share, which compares to a GAAP net income of $13.9 million, or $0.09 per diluted common share, for the fiscal second quarter 2018.

Ciena's adjusted (non-GAAP) net income for the fiscal second quarter 2019 was $76.2 million, or $0.48 per diluted common share, which compares to an adjusted (non-GAAP) net income of $33.8 million, or $0.23 per diluted common share, for the fiscal second quarter 2018.

Fiscal Second Quarter 2019 Performance Summary

The tables below (in millions, except percentage data) provide comparisons of certain quarterly results to the prior year. Appendix A and B set forth reconciliations between the GAAP and adjusted (non-GAAP) measures contained in this release.

• Two 10%-plus customers represented a total of 25% of revenue
• Cash and investments totaled $818.5 million
• Cash flow from operations totaled $104.1 million
• Average days' sales outstanding (DSOs) were 86
• Accounts receivable balance was $756.6 million
• Unbilled contract asset balance was $74.4 million
• Inventories totaled $359.4 million, including:
• Raw materials: $90.3 million
• Work in process: $12.0 million
• Finished goods: $205.4 million
• Deferred cost of sales: $100.6 million
• Reserve for excess and obsolescence: $(48.9) million
• Product inventory turns were 4.6
• Headcount totaled 6,176

Supplemental Materials and Live Web Broadcast of Unaudited Fiscal Second Quarter 2019 Results

Today, Thursday, June 6, 2019, in conjunction with this announcement, Ciena has posted to the Quarterly Results page of the Investor Relations section of its website an accompanying investor presentation for its unaudited fiscal second quarter 2019 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.