FOR IMMEDIATE RELEASE

Ciena Reports Fiscal Second Quarter 2025 Financial Results


HANOVER, Md. - June 5, 2025 - Ciena® Corporation (NYSE: CIEN), a networking systems, services and software company, today announced unaudited financial results for its fiscal second quarter ended May 3, 2025.

•Q2 Revenue: $1.13 billion

•Q2 Net Income per Share: $0.06 GAAP; $0.42 adjusted (non-GAAP)

•Share Repurchases: Repurchased approximately 1.2 million shares of common stock for an aggregate price of $84.3 million during the quarter


"Our strong fiscal second quarter results demonstrate our continued global leadership in high-speed connectivity with growing momentum across all of our business segments,” said Gary Smith, president and CEO, Ciena. “With accelerating demand driven by cloud and AI, our performance is validating the durability of a positive network infrastructure spending environment. As a result, we have strong visibility and are very confident in both our continued growth and our ability to drive additional operating leverage over time."

For the fiscal second quarter 2025, Ciena reported revenue of $1.13 billion as compared to $910.8 million for the fiscal second quarter 2024.

Ciena's GAAP net income for the fiscal second quarter 2025 was $9.0 million, or $0.06 per diluted common share, which compares to a GAAP net loss of $(16.8) million, or $(0.12) per diluted common share, for the fiscal second quarter 2024.

Ciena's adjusted (non-GAAP) net income for the fiscal second quarter 2025 was $60.7 million, or $0.42 per diluted common share, which compares to an adjusted (non-GAAP) net income of $39.4 million, or $0.27 per diluted common share, for the fiscal second quarter 2024.










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Fiscal Second Quarter 2025 Performance Summary
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)
Q2Q2Period Change
FY 2025FY 2024Y-T-Y*
Revenue$1,125.9 $910.8 23.6 %
Gross margin40.2 %42.7 %(2.5)%
Operating expense$420.0 $392.6 7.0 %
Operating margin2.9 %(0.4)%3.3 %
Non-GAAP Results (unaudited)
Q2Q2Period Change
FY 2025FY 2024Y-T-Y*
Revenue$1,125.9 $910.8 23.6 %
Adj. gross margin41.0 %43.5 %(2.5)%
Adj. operating expense$369.5 $333.9 10.7 %
Adj. operating margin8.2 %6.8 %1.4 %
Adj. EBITDA$116.7 $85.8 36.0 %
* Denotes % change, or in the case of margin, absolute change
Revenue by Segment (unaudited)
Q2 FY 2025Q2 FY 2024
Revenue%**Revenue%**
Networking Platforms
Optical Networking$773.6 68.7 $560.2 61.5 
Routing and Switching92.7 8.2 116.1 12.7 
Total Networking Platforms866.3 76.9 676.3 74.2 
Platform Software and Services85.4 7.5 85.4 9.4 
Blue Planet Automation Software and Services28.0 2.5 14.4 1.6 
Global Services
Maintenance Support and Training79.4 7.1 77.4 8.5 
Installation and Deployment58.2 5.2 43.8 4.8 
Consulting and Network Design8.6 0.8 13.5 1.5 
Total Global Services146.2 13.1 134.7 14.8 
Total$1,125.9 100.0 $910.8 100.0 
** Denotes % of total revenue

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Additional Performance Metrics for Fiscal Second Quarter 2025
Revenue by Geographic Region (unaudited)
Q2 FY 2025Q2 FY 2024
Revenue% **Revenue% **
Americas$833.8 74.1 $662.9 72.8 
Europe, Middle East and Africa191.6 17.0 155.8 17.1 
Asia Pacific100.5 8.9 92.1 10.1 
Total$1,125.9 100.0 $910.8 100.0 

** Denotes % of total revenue
•Two customer represented 10%-plus of revenue combining for a total of 23.9% of revenue
•Cash and investments totaled $1.35 billion
•Cash flow from operations totaled $156.9 million
•Average days' sales outstanding (DSOs) were 87
•Accounts receivable, net balance was $929.8 million
•Unbilled contract asset, net balance was $151.8 million
•Inventories totaled $874.3 million, including:
◦Raw materials: $647.0 million
◦Work in process: $35.3 million
◦Finished goods: $273.4 million
◦Deferred cost of sales: $36.6 million
◦Reserve for excess and obsolescence: $(118.0) million
•Product inventory turns were 2.5
•Headcount totaled 8,819

Supplemental Materials and Live Web Broadcast of Unaudited Fiscal Second Quarter 2025 Results
Today, Thursday, June 5, 2025, 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 second quarter 2025 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.








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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 second quarter results demonstrate our continued global leadership in high-speed connectivity with growing momentum across all of our business segments. With accelerating demand driven by cloud and AI, our performance is validating the durability of a positive network infrastructure spending environment. As a result, we have strong visibility and are very confident in both our continued growth and our ability to drive additional operating leverage over time."

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, their spending and their businesses and markets; our ability to execute our business and growth strategies; the impact of macroeconomic conditions and global supply chain constraints or disruptions including increased supply costs and lead times; the impact of the introduction of new technologies by us or our competitors; seasonality and the timing and size of customer orders, their delivery dates and 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 tensions or events, including but not limited to the ongoing conflicts between Ukraine and Russia, and Israel and Hamas, and public health emergencies or epidemics and pandemics; changes in tax or trade regulations, including the imposition of tariffs, duties or efforts to withdraw from or materially modify international trade agreements; cyberattacks, data breaches or other security incidents involving our enterprise network environment or our products; regulatory changes, litigation involving our intellectual property or government investigations; and the other risk factors disclosed in Ciena’s periodic reports filed with the Securities and Exchange Commission (SEC) including its Annual Report on Form 10-K filed with the SEC on December 20, 2024 and included in its Quarterly Report on Form 10-Q for the second quarter of fiscal 2025 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.
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About Ciena. Ciena (NYSE: CIEN) is a global leader in networking systems, services, and software. We build the most adaptive networks in the industry, enabling customers to anticipate and meet ever-increasing digital demands. For three-plus decades, Ciena has brought our humanity to our relentless pursuit of innovation. Prioritizing collaborative relationships with our customers, partners, and communities, we create flexible, open, and sustainable networks that better serve all users—today and into the future. For updates on Ciena, follow us on LinkedIn, X, the Ciena Insights blog, or visit www.ciena.com.
 

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CIENA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Quarter EndedSix Months Ended
 May 3,April 27,May 3,April 27,
 2025202420252024
Revenue:  
Products$898,581 $701,316 $1,753,366 $1,537,093 
Services227,297 209,510 444,772 411,442 
Total revenue1,125,878 910,826 2,198,138 1,948,535 
Cost of goods sold:  
Products549,984 415,732 1,040,788 882,204 
Services123,056 106,433 232,691 210,708 
Total cost of goods sold673,040 522,165 1,273,479 1,092,912 
Gross profit452,838 388,661 924,659 855,623 
Operating expenses:  
Research and development214,868 195,380 407,531 382,649 
Selling and marketing139,683 124,071 276,187 252,229 
General and administrative56,952 49,573 110,854 104,256 
Significant asset impairments and restructuring costs1,948 15,655 3,492 20,626 
Amortization of intangible assets6,545 7,947 13,090 15,199 
Total operating expenses419,996 392,626 811,154 774,959 
Income (loss) from operations32,842 (3,965)113,505 80,664 
Interest and other income, net7,871 11,797 19,449 22,447 
Interest expense(21,697)(23,861)(44,615)(47,637)
Loss on extinguishment and modification of debt— — (729)— 
Income (loss) before income taxes19,016 (16,029)87,610 55,474 
Provision for income taxes
10,047 820 34,069 22,776 
Net income (loss)$8,969 $(16,849)$53,541 $32,698 
Net Income (Loss) per Common Share
Basic net income (loss) per common share$0.06 $(0.12)$0.38 $0.23 
Diluted net income (loss) per potential common share $0.06 $(0.12)$0.37 $0.22 
Weighted average basic common shares outstanding142,503 144,914 142,704 145,104 
Weighted average dilutive potential common shares outstanding1
144,972 144,914 145,470 146,059 

1 Weighted average dilutive potential common shares outstanding used in calculating GAAP diluted net income (loss) per potential common share includes the following number of shares underlying certain stock option and stock unit awards: (i) 2.5 million and 2.8 million for the second quarter and first six months of fiscal 2025, respectively; and (ii) 1.0 million for the first six months of fiscal 2024.

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CIENA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
May 3,
2025		November 2,
2024
ASSETS 
Current assets: 
Cash and cash equivalents$949,771 $934,863 
Short-term investments304,177 316,343 
Accounts receivable, net929,799 908,597 
Inventories, net874,326 820,430 
Prepaid expenses and other506,252 564,183 
Total current assets3,564,325 3,544,416 
Long-term investments92,121 80,920 
Equipment, building, furniture and fixtures, net349,349 337,722 
Operating lease right-of-use assets38,655 27,417 
Goodwill444,805 444,707 
Other intangible assets, net147,459 165,020 
Deferred tax asset, net863,571 886,441 
Other long-term assets159,081 154,694 
Total assets$5,659,366 $5,641,337 
LIABILITIES AND STOCKHOLDERS’ EQUITY 
Current liabilities: 
Accounts payable$419,077 $423,401 
Accrued liabilities and other short-term obligations381,398 393,905 
Deferred revenue221,835 156,379 
Operating lease liabilities13,170 14,455 
Current portion of long-term debt11,580 11,700 
Total current liabilities1,047,060 999,840 
Long-term deferred revenue83,239 81,240 
Other long-term obligations188,809 185,938 
Long-term operating lease liabilities35,103 25,107 
Long-term debt, net1,528,776 1,533,074 
Total liabilities2,882,987 2,825,199 
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; 141,686,082 and 142,656,116 shares issued and outstanding
1,417 1,427 
Additional paid-in capital6,054,464 6,154,869 
Accumulated other comprehensive loss(39,596)(46,711)
Accumulated deficit(3,239,906)(3,293,447)
Total stockholders’ equity2,776,379 2,816,138 
Total liabilities and stockholders’ equity$5,659,366 $5,641,337 
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CIENA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Six Months Ended
 May 3,April 27,
 20252024
Cash flows provided by operating activities: 
Net income$53,541 $32,698 
Adjustments to reconcile net income to net cash provided by operating activities: 
Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements49,771 46,016 
Share-based compensation expense88,767 78,075 
Amortization of intangible assets17,555 20,726 
Deferred taxes(10,470)(8,946)
Provision for inventory excess and obsolescence23,431 23,152 
Provision for warranty10,714 8,629 
Other(6,355)11,509 
Changes in assets and liabilities: 
Accounts receivable(20,857)155,107 
Inventories(76,904)5,346 
Prepaid expenses and other84,144 (37,441)
Operating lease right-of-use assets5,580 6,111 
Accounts payable, accruals and other obligations(16,755)(56,064)
Deferred revenue66,493 48,641 
Short and long-term operating lease liabilities(7,986)(9,010)
Net cash provided by operating activities260,669 324,549 
Cash flows used in investing activities: 
Payments for equipment, furniture, fixtures and intellectual property(55,622)(33,500)
Purchases of investments(159,102)(171,131)
Proceeds from sales and maturities of investments164,837 83,013 
Settlement of foreign currency forward contracts, net2,441 (828)
Purchase of equity investments— (16,256)
Net cash used in investing activities(47,446)(138,702)
Cash flows used in financing activities: 
Proceeds for modification of debt, net19,175 — 
Cash paid for extinguishment of debt(19,175)— 
Payment of long term debt(5,790)(2,925)
Payment of debt issuance costs(12)(2,554)
Payment of finance lease obligations(2,110)(1,989)
Shares repurchased for tax withholdings on vesting of stock unit awards(42,266)(22,428)
Repurchases of common stock - repurchase program, net(168,197)(94,817)
Proceeds from issuance of common stock17,132 16,876 
Net cash used in financing activities(201,243)(107,837)
Effect of exchange rate changes on cash, cash equivalents and restricted cash2,937 2,659 
Net increase in cash, cash equivalents and restricted cash14,917 80,669 
Cash, cash equivalents and restricted cash at beginning of period935,026 1,010,786 
Cash, cash equivalents and restricted cash at end of period$949,943 $1,091,455 
Supplemental disclosure of cash flow information 
Cash paid during the period for interest, net$43,200 $45,782 
Cash paid during the period for income taxes, net$55,466 $29,193 
Operating lease payments$8,812 $9,964 
Non-cash investing and financing activities
Purchase of equipment in accounts payable$12,545 $6,365 
Repurchase of common stock in accrued liabilities from repurchase program, net$2,023 $3,859 
Operating right-of-use assets subject to lease liability $16,351 $3,639 
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APPENDIX A - Reconciliation of Adjusted (Non- GAAP) Measurements
(in thousands, except per share data) (unaudited)
Quarter Ended
May 3,April 27,
20252024
Gross Profit Reconciliation (GAAP/non-GAAP)
GAAP gross profit$452,838 $388,661 
Share-based compensation-products2,033 1,760 
Share-based compensation-services3,980 3,344 
Amortization of intangible assets2,232 2,763 
Total adjustments related to gross profit8,245 7,867 
Adjusted (non-GAAP) gross profit$461,083 $396,528 
Adjusted (non-GAAP) gross profit percentage41.0 %43.5 %
Operating Expense Reconciliation (GAAP/non-GAAP)
GAAP operating expense$419,996 $392,626 
Share-based compensation-research and development17,021 14,066 
Share-based compensation-sales and marketing13,649 11,166 
Share-based compensation-general and administrative11,341 9,875 
Significant asset impairments and restructuring costs1,948 15,655 
Amortization of intangible assets6,545 7,947 
Total adjustments related to operating expense50,504 58,709 
Adjusted (non-GAAP) operating expense$369,492 $333,917 
Income (Loss) from Operations Reconciliation (GAAP/non-GAAP)
GAAP income (loss) from operations$32,842 $(3,965)
Total adjustments related to gross profit8,245 7,867 
Total adjustments related to operating expense50,504 58,709 
Total adjustments related to income (loss) from operations58,749 66,576 
Adjusted (non-GAAP) income from operations$91,591 $62,611 
Adjusted (non-GAAP) operating margin percentage8.2 %6.8 %
Net Income (Loss) Reconciliation (GAAP/non-GAAP)
GAAP net income (loss)$8,969 $(16,849)
Exclude GAAP provision for income taxes10,047 820 
Income (loss) before income taxes19,016 (16,029)
Total adjustments related to income (loss) from operations58,749 66,576 
Adjusted income before income taxes77,765 50,547 
Non-GAAP tax provision on adjusted income before income taxes17,108 11,120 
Adjusted (non-GAAP) net income$60,657 $39,427 
Weighted average basic common shares outstanding142,503144,914
Weighted average dilutive potential common shares outstanding 1
144,972146,268
Net Income (Loss) per Common Share
GAAP diluted net income (loss) per potential common share$0.06 $(0.12)
Adjusted (non-GAAP) diluted net income per potential common share$0.42 $0.27 

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) 2.5 million for the second quarter of fiscal 2025; and (ii) 1.4 million for the second quarter of fiscal 2024.
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APPENDIX B - Calculation of EBITDA and Adjusted EBITDA
(in thousands) (unaudited)
Quarter Ended
May 3,April 27,
20252024
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
Net income (loss) (GAAP)$8,969 $(16,849)
Add: Interest expense21,697 23,861 
Less: Interest and other income, net7,871 11,797 
Add: Provision for income taxes10,047 820 
Add: Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements25,092 23,208 
Add: Amortization of intangible assets8,777 10,710 
EBITDA$66,711 $29,953 
Add: Share-based compensation expense48,024 40,211 
Add: Significant asset impairments and restructuring costs1,948 15,655 
Adjusted EBITDA$116,683 $85,819 
* * *
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.
•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 restructuring certain real estate facilities.
•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 an expected useful life.
•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 22.0% for both the second quarter of fiscal 2025 and fiscal 2024. This rate may be subject to change in the future, including as a result of changes in tax policy or tax strategy.
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