Ciena corporate presentation

bugenigmaSoftware and s/w Development

Oct 30, 2013 (3 years and 11 months ago)

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Information presented and related comments of presenters may contain forward
-
looking
statements. 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.


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
June 12, 2013.


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 and operating profit. These measures
are not intended to be a substitute for financial information presented in accordance with
GAAP. A GAAP to non
-
GAAP reconciliation of historical measures used in this presentation
can be found in the “Investors” section of Ciena’s website at
www.ciena.com

in the press
release announcing the results of operations for the relevant period.


HQ: Hanover, MD


4,550 employees


1,000+ customers


60+ countries

220+ customers

North America

CALA

EMEA

APAC

660+ customers

60+ customers

90+ customers

Converged packet
-
optical
transport, switching and service delivery platforms

managed and automated by intelligent software,

and supported
by comprehensive service offerings

OP
n

…not just a product upgrade cycle


Content
migrating to cloud


Increasing mobility


Virtualization widespread


Connected smart

devices proliferating


User experience

strongly tied to

network performance

End
-
user trends


Selling experience

rather than connection


Monetizing networked
applications quickly

and easily


Content owners building
private networks for

greater control


New customers

emerge; established
customers evolve

Customer business

model
evolution


Data center is the new CO


Programmability

essential for
new

service
delivery models


Convergence of

packet and optical


High
-
touch functions

and network control

centralize
and virtualize

Long
-
term network
architecture change

Market Share : Improving

Cost Structure : Transforming

Revenue : Growing

Balance Sheet : Strengthening

NEXT
-
GEN NETWORKING
1

NORTH AMERICA

NEXT
-
GEN NETWORKING
1

GLOBAL

1.
Long
-
haul WDM + metro WDM + optical switching; Source:
Dell’Oro


Group

BUSINESS

TRANSFORMATION

COST

REDUCTIONS

COST REDUCTIONS

OPTIMIZING OUR SUPPLY CHAIN & PRODUCT COSTS

Build vs. buy on some components and subsystems

Converge technologies and substitute components

Leverage increased volume across a consolidated supply chain

Expand
direct order fulfillment

-
50
%

-
25+%


EXAMPLE:

SUPPLY CHAIN
TRANSFORMATION
COST
FACTOR INDEX

BUSINESS TRANSFORMATION

IMPROVING BUSINESS EFFICIENCIES

Redesign “quote
-
to
-
cash” process

Sustain DSOs in the low
-
to
-
mid 70s

Strategic partnerships for certain business functions

LOW TO
MID
30%s

39%

42%




Operating Expenses

% Revenue

Growing revenue faster than operating expenses

$
188M

$
500M

$
350M

$
188M

$0
$100
$200
$300
$400
$500
$600
2015
2017
2018
2020




Revenue Growth

Q2’13


Q2‘12

$507.7M

$477.6M

Product Mix Progression

Gross Margin
1

Q2’13

Q2’12

42.5%

39.6%

1
-

Non
-
GAAP

2
-

Reflects the payment at maturity of $216.2M in outstanding principal amount on our 2013 convertible senior notes


Converged
Packet
Optical

55%

Packet
Networking

6%

Optical
Transport

18%

SW & Svcs

21%

$457M
2

Cash Position

Converged
Packet
Optical

58%

Packet
Networking

11%

Optical
Transport

11%

SW & Svcs

20%



Projections or outlook with respect to future operating results are only as of June 6, 2013, the date presented on the relate
d e
arnings call. Ciena
assumes no obligation to update this information, whether as a result of new information, future events, or otherwise