| Schedule of Share-based Compensation Expense |
The following table summarizes share-based compensation expense for the periods indicated (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | Quarter Ended | | Nine Months Ended | | August 1, | | August 2, | | August 1, | | August 2, | | 2026 | | 2025 | | 2026 | | 2025 | | Products | $ | 2,175 | | | $ | 2,027 | | | $ | 6,007 | | | $ | 5,810 | | | Services | 4,666 | | | 3,941 | | | 13,195 | | | 11,327 | | | Share-based compensation expense included in cost of goods sold | 6,841 | | | 5,968 | | | 19,202 | | | 17,137 | | | Research and development | 20,173 | | | 16,749 | | | 55,353 | | | 48,007 | | | Selling and marketing | 16,623 | | | 13,277 | | | 47,863 | | | 38,523 | | | General and administrative | 14,241 | | | 11,008 | | | 40,760 | | | 32,176 | | | | | | | | | | | Share-based compensation expense included in operating expense | 51,037 | | | 41,034 | | | 143,976 | | | 118,706 | | Share-based compensation expense capitalized in inventory, net (1) | — | | | (74) | | | — | | | (147) | | | Total share-based compensation expense | $ | 57,878 | | | $ | 46,928 | | | $ | 163,178 | | | $ | 135,696 | |
(1) Effective the beginning of fiscal 2026, Ciena will no longer be calculating share-based compensation capitalized in inventory due to immateriality.
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