Cover
Cover - shares | 9 Months Ended | |
Jul. 27, 2024 | Aug. 30, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 27, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-36250 | |
Entity Registrant Name | Ciena Corp | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 23-2725311 | |
Entity Address, Address Line One | 7035 Ridge Road | |
Entity Address, City or Town | Hanover | |
Entity Address, State or Province | MD | |
Entity Address, Postal Zip Code | 21076 | |
City Area Code | 410 | |
Local Phone Number | 694-5700 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | CIEN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 144,427,200 | |
Entity Central Index Key | 0000936395 | |
Current Fiscal Year End Date | --11-02 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 27, 2024 | Jul. 29, 2023 | Jul. 27, 2024 | Jul. 29, 2023 | |
Revenue: | ||||
Total revenue | $ 942,308 | $ 1,067,886 | $ 2,890,843 | $ 3,257,062 |
Cost of goods sold: | ||||
Total cost of goods sold | 538,363 | 618,945 | 1,631,275 | 1,864,492 |
Gross profit | 403,945 | 448,941 | 1,259,568 | 1,392,570 |
Operating expenses: | ||||
Research and development | 188,888 | 189,392 | 571,537 | 561,115 |
Selling and marketing | 121,520 | 118,266 | 373,749 | 367,156 |
General and administrative | 58,248 | 49,349 | 162,504 | 151,184 |
Significant asset impairments and restructuring costs | 1,361 | 4,174 | 21,987 | 16,625 |
Amortization of intangible assets | 7,185 | 9,487 | 22,384 | 26,773 |
Acquisition and integration costs | 0 | 59 | 0 | 3,474 |
Total operating expenses | 377,202 | 370,727 | 1,152,161 | 1,126,327 |
Income from operations | 26,743 | 78,214 | 107,407 | 266,243 |
Interest and other income, net | 14,013 | 10,187 | 36,460 | 50,711 |
Interest expense | (24,401) | (24,060) | (72,038) | (63,819) |
Income before income taxes | 16,355 | 64,341 | 71,829 | 253,135 |
Provision for income taxes | 2,125 | 34,608 | 24,901 | 89,507 |
Net income | $ 14,230 | $ 29,733 | $ 46,928 | $ 163,628 |
Basic net income per common share (in dollars per share) | $ 0.10 | $ 0.20 | $ 0.32 | $ 1.09 |
Diluted net income per potential common share (in dollars per share) | $ 0.10 | $ 0.20 | $ 0.32 | $ 1.09 |
Weighted average basic common shares outstanding (in shares) | 144,394 | 149,690 | 144,876 | 149,472 |
Weighted average dilutive potential common shares outstanding (in shares) | 145,361 | 149,977 | 145,795 | 149,867 |
Products | ||||
Revenue: | ||||
Total revenue | $ 729,503 | $ 865,197 | $ 2,266,596 | $ 2,678,242 |
Cost of goods sold: | ||||
Total cost of goods sold | 433,533 | 516,900 | 1,315,737 | 1,559,120 |
Services | ||||
Revenue: | ||||
Total revenue | 212,805 | 202,689 | 624,247 | 578,820 |
Cost of goods sold: | ||||
Total cost of goods sold | $ 104,830 | $ 102,045 | $ 315,538 | $ 305,372 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 27, 2024 | Jul. 29, 2023 | Jul. 27, 2024 | Jul. 29, 2023 | |
Net income | $ 14,230 | $ 29,733 | $ 46,928 | $ 163,628 |
Unrealized gain on available-for-sale securities, net of tax | 775 | 378 | 493 | 2,075 |
Change in cumulative translation adjustments | (4,686) | 10,151 | 2,961 | 17,981 |
Other comprehensive income (loss) | (18,463) | 27,977 | (2,425) | 34,867 |
Total comprehensive income (loss) | (4,233) | 57,710 | 44,503 | 198,495 |
Unrealized gain (loss) on foreign currency forward contracts, net of tax | ||||
Change in unrealized gain (loss) on cash flow hedges, net of tax | (872) | 5,124 | 3,736 | 9,314 |
Unrealized gain (loss) on interest rate swaps, net of tax | ||||
Change in unrealized gain (loss) on cash flow hedges, net of tax | $ (13,680) | $ 12,324 | $ (9,615) | $ 5,497 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 27, 2024 | Oct. 28, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 883,365 | $ 1,010,618 |
Short-term investments | 217,810 | 104,753 |
Accounts receivable, net of allowance for credit losses of $9.2 million and $11.7 million as of July 27, 2024 and October 28, 2023, respectively. | 899,877 | 1,003,876 |
Inventories, net | 937,399 | 1,050,838 |
Prepaid expenses and other | 600,008 | 405,694 |
Total current assets | 3,538,459 | 3,575,779 |
Long-term investments | 111,833 | 134,278 |
Equipment, building, furniture and fixtures, net | 299,161 | 280,147 |
Operating right-of-use assets | 28,717 | 35,140 |
Goodwill | 444,791 | 444,765 |
Other intangible assets, net | 174,974 | 205,627 |
Deferred tax asset, net | 831,682 | 809,306 |
Other long-term assets | 145,513 | 116,453 |
Total assets | 5,575,130 | 5,601,495 |
Current liabilities: | ||
Accounts payable | 316,599 | 317,828 |
Accrued liabilities and other short-term obligations | 347,238 | 431,419 |
Deferred revenue | 179,457 | 154,419 |
Operating lease liabilities | 15,565 | 16,655 |
Current portion of long-term debt | 11,700 | 11,700 |
Total current liabilities | 870,559 | 932,021 |
Long-term deferred revenue | 77,628 | 74,041 |
Other long-term obligations | 171,014 | 170,407 |
Long-term operating lease liabilities | 26,742 | 33,259 |
Long-term debt, net | 1,538,315 | 1,543,406 |
Total liabilities | 2,684,258 | 2,753,134 |
Commitments and contingencies (Note 19) | ||
Stockholders’ equity: | ||
Preferred stock – par value $0.01; 20,000,000 shares authorized; zero shares issued and outstanding | 0 | 0 |
Common stock – par value $0.01; 290,000,000 shares authorized; 144,426,873 and 144,829,938 shares issued and outstanding | 1,444 | 1,448 |
Additional paid-in capital | 6,260,095 | 6,262,083 |
Accumulated other comprehensive loss | (40,192) | (37,767) |
Accumulated deficit | (3,330,475) | (3,377,403) |
Total stockholders’ equity | 2,890,872 | 2,848,361 |
Total liabilities and stockholders’ equity | $ 5,575,130 | $ 5,601,495 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jul. 27, 2024 | Oct. 28, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 9.2 | $ 11.7 |
Stockholders’ equity: | ||
Preferred stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 290,000,000 | 290,000,000 |
Common stock, shares outstanding (in shares) | 144,426,873 | 144,829,938 |
Common stock, shares issued (in shares) | 144,426,873 | 144,829,938 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 27, 2024 | Jul. 29, 2023 | |
Cash flows provided by (used in) operating activities: | ||
Net income | $ 46,928 | $ 163,628 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements | 68,997 | 69,213 |
Share-based compensation expense | 115,433 | 95,405 |
Amortization of intangible assets | 30,675 | 36,274 |
Deferred taxes | (19,909) | (64,005) |
Provision for inventory excess and obsolescence | 35,400 | 18,767 |
Provision for warranty | 14,708 | 18,860 |
Gain on equity investments, net | 0 | (26,368) |
Other | 11,968 | 13,694 |
Changes in assets and liabilities: | ||
Accounts receivable | 92,421 | (80,399) |
Inventories | 78,220 | (262,345) |
Prepaid expenses and other | (221,823) | 72,062 |
Operating lease right-of-use assets | 8,963 | 11,003 |
Accounts payable, accruals and other obligations | (112,352) | (133,880) |
Deferred revenue | 28,833 | 57,547 |
Short- and long-term operating lease liabilities | (13,290) | (16,596) |
Net cash provided by (used in) operating activities | 165,172 | (27,140) |
Cash flows used in investing activities: | ||
Payments for equipment, furniture, fixtures and intellectual property | (53,098) | (83,422) |
Purchases of investments | (197,303) | (119,240) |
Proceeds from sales and maturities of investments | 114,899 | 150,646 |
Settlement of foreign currency forward contracts, net | (362) | (3,272) |
Purchase of equity investment | (21,682) | 0 |
Acquisition of business, net of cash acquired | 0 | (230,048) |
Net cash used in investing activities | (157,546) | (285,336) |
Cash flows provided by (used in) financing activities: | ||
Proceeds from issuance of term loan, net | 0 | 497,500 |
Payment of long-term debt | (5,850) | (6,448) |
Payment of debt issuance costs | (2,554) | (5,422) |
Payment of finance lease obligations | (3,004) | (2,830) |
Shares repurchased for tax withholdings on vesting of stock unit awards | (33,450) | (29,794) |
Repurchases of common stock - repurchase program, net | (125,816) | (57,736) |
Proceeds from issuance of common stock | 34,292 | 31,276 |
Net cash provided by (used in) financing activities | (136,382) | 426,546 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,499 | 9,501 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (127,257) | 123,571 |
Cash, cash equivalents and restricted cash at beginning of period | 1,010,786 | 994,378 |
Cash, cash equivalents and restricted cash at end of period | 883,529 | 1,117,949 |
Supplemental disclosure of cash flow information | ||
Cash paid during the period for interest, net | 64,999 | 56,709 |
Cash paid during the period for income taxes, net | 41,736 | 68,058 |
Operating lease payments | 14,672 | 18,038 |
Non-cash investing and financing activities | ||
Purchase of equipment in accounts payable | 35,316 | 4,579 |
Repurchase of common stock in accrued liabilities from repurchase program, net | 1,762 | 3,500 |
Operating right-of-use assets subject to lease liability | 5,326 | 9,771 |
Gain on equity investments, net | $ 0 | $ 26,368 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in-Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance (in shares) at Oct. 29, 2022 | 148,412,943 | ||||
Equity - beginning balance at Oct. 29, 2022 | $ 2,712,861 | $ 1,484 | $ 6,390,252 | $ (46,645) | $ (3,632,230) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 163,628 | 163,628 | |||
Other comprehensive income (loss) | 34,867 | 34,867 | |||
Repurchase of common stock - repurchase program, net (in shares) | (1,441,435) | ||||
Repurchase of common stock - repurchase program, net | (61,236) | $ (14) | (61,222) | ||
Issuance of shares from employee equity plans (in shares) | 2,429,069 | ||||
Issuance of shares from employee equity plans | 31,276 | $ 24 | 31,252 | ||
Share-based compensation expense | 95,405 | 95,405 | |||
Shares repurchased for tax withholdings on vesting of stock unit awards (in shares) | (628,064) | ||||
Shares repurchased for tax withholdings on vesting of stock unit awards | (29,794) | $ (6) | (29,788) | ||
Ending balance (in shares) at Jul. 29, 2023 | 148,772,513 | ||||
Equity- ending balance at Jul. 29, 2023 | $ 2,947,007 | $ 1,488 | 6,425,899 | (11,778) | (3,468,602) |
Beginning balance (in shares) at Oct. 28, 2023 | 144,829,938 | 144,829,938 | |||
Equity - beginning balance at Oct. 28, 2023 | $ 2,848,361 | $ 1,448 | 6,262,083 | (37,767) | (3,377,403) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 46,928 | 46,928 | |||
Other comprehensive income (loss) | (2,425) | (2,425) | |||
Repurchase of common stock - repurchase program, net (in shares) | (2,415,438) | ||||
Repurchase of common stock - repurchase program, net | (118,267) | $ (24) | (118,243) | ||
Issuance of shares from employee equity plans (in shares) | 2,730,328 | ||||
Issuance of shares from employee equity plans | 34,292 | $ 27 | 34,265 | ||
Share-based compensation expense | 115,433 | 115,433 | |||
Shares repurchased for tax withholdings on vesting of stock unit awards (in shares) | (717,955) | ||||
Shares repurchased for tax withholdings on vesting of stock unit awards | $ (33,450) | $ (7) | (33,443) | ||
Ending balance (in shares) at Jul. 27, 2024 | 144,426,873 | 144,426,873 | |||
Equity- ending balance at Jul. 27, 2024 | $ 2,890,872 | $ 1,444 | $ 6,260,095 | $ (40,192) | $ (3,330,475) |
INTERIM FINANCIAL STATEMENTS
INTERIM FINANCIAL STATEMENTS | 9 Months Ended |
Jul. 27, 2024 | |
Quarterly Financial Data [Abstract] | |
INTERIM FINANCIAL STATEMENTS | INTERIM FINANCIAL STATEMENTS The interim financial statements included herein for Ciena Corporation and its wholly owned subsidiaries (“Ciena”) have been prepared by Ciena, without audit, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires Ciena to make judgments, assumptions, and estimates that affect the amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Among other things, these estimates form the basis for judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates under different assumptions or conditions. To the extent that there are material differences between Ciena’s estimates and actual results, Ciena’s consolidated financial statements will be affected. In the opinion of management, the financial statements included in this report reflect all normal recurring adjustments that Ciena considers necessary for the fair statement of the results of operations of Ciena for the interim periods covered and of the financial position of Ciena at the date of the interim balance sheets. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to SEC rules and regulations. The Condensed Consolidated Balance Sheet as of October 28, 2023 was derived from audited financial statements, but does not include all disclosures required by GAAP. However, Ciena believes that the disclosures are adequate to understand the information presented herein. The operating results for interim periods are not necessarily indicative of the operating results for the entire year. These financial statements should be read in conjunction with Ciena’s audited consolidated financial statements and the notes thereto included in Ciena’s Annual Report on Form 10-K for the fiscal year ended October 28, 2023 (the “2023 Annual Report”). |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Jul. 27, 2024 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Except for the changes in certain policies described below, there have been no material changes to Ciena’s significant accounting policies, compared to the accounting policies described in Note 1, Ciena Corporation and Significant Accounting Policies and Estimates, in Notes to Consolidated Financial Statements in Item 8 of Part II of the 2023 Annual Report. Newly Issued Accounting Standards - Effective In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-08 (“ASU 2021-08”), Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers to improve the accounting for acquired revenue contracts with customers in a business combination to address recognition of an acquired contract liability and payment terms and their effect on subsequent revenue recognized by the acquirer. ASU 2021-08 was effective for Ciena beginning in the first quarter of fiscal 2024 without any material impact on its consolidated financial position, results of operations and related disclosures. Newly Issued Accounting Standards - Not Yet Effective In November 2023, the FASB issued ASU No. 2023-07 (“ASU 2023-07”), Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 on a retrospective basis. Early adoption is permitted. Ciena is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU No. 2023-09 (“ASU 2023-09”), Income Taxes (Topic 740): Improvement to Income Tax Disclosures to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024; however, early adoption is permitted. ASU 2023-09 allows for adoption using either a prospective or retrospective method. Ciena is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures. In March 2024, the SEC adopted final rules under SEC Release No. 33-11275, The Enhancement and Standardization of Climate Related Disclosures for Investors , which will require registrants to provide certain climate-related information in their registration statements and annual reports. The rules will require information about a registrant's climate-related risks that are reasonably likely to have a material impact on its business, results of operations, or financial condition. The required information about climate-related risks will also include disclosure of a registrant's greenhouse gas emissions. In addition, the rules will require registrants to present certain climate-related financial metrics in their audited financial statements. Disclosures will be required prospectively, with information for prior periods required only to the extent it was previously disclosed in an SEC filing. Ciena is currently evaluating the impact of these final rules on its consolidated financial statements and related disclosures. On April 12, 2024, the final rules were indefinitely delayed pending the completion of judicial review in consolidated proceedings in the U.S. Court of Appeals, Eighth Circuit. |
REVENUE
REVENUE | 9 Months Ended |
Jul. 27, 2024 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Disaggregation of Revenue Ciena’s disaggregated revenue as presented below depicts the nature, amount, and timing of revenue for similar groupings of Ciena’s products and services. The sales cycle, contractual obligations, customer requirements, and go-to-market strategies may differ across Ciena’s product lines, resulting in different economic risk profiles for each line. The tables below set forth Ciena’s disaggregated revenue for the periods indicated (in thousands): Quarter Ended July 27, 2024 Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services Total Product lines: Optical Networking $ 606,845 $ — $ — $ — $ 606,845 Routing and Switching 92,692 — — — 92,692 Platform Software and Services — 83,212 — — 83,212 Blue Planet Automation Software and Services — — 25,791 — 25,791 Maintenance Support and Training — — — 74,344 74,344 Installation and Deployment — — — 46,484 46,484 Consulting and Network Design — — — 12,940 12,940 Total revenue by product line $ 699,537 $ 83,212 $ 25,791 $ 133,768 $ 942,308 Timing of revenue recognition: Products and services at a point in time $ 699,537 $ 18,766 $ 11,614 $ 9,833 $ 739,750 Services transferred over time — 64,446 14,177 123,935 202,558 Total revenue by timing of revenue recognition $ 699,537 $ 83,212 $ 25,791 $ 133,768 $ 942,308 Quarter Ended July 29, 2023 Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services Total Product lines: Optical Networking $ 718,997 $ — $ — $ — $ 718,997 Routing and Switching 127,563 — — — 127,563 Platform Software and Services — 78,880 — — 78,880 Blue Planet Automation Software and Services — — 13,167 — 13,167 Maintenance Support and Training — — — 72,887 72,887 Installation and Deployment — — — 46,840 46,840 Consulting and Network Design — — — 9,552 9,552 Total revenue by product line $ 846,560 $ 78,880 $ 13,167 $ 129,279 $ 1,067,886 Timing of revenue recognition: Products and services at a point in time $ 846,560 $ 15,980 $ 2,832 $ 11,886 $ 877,258 Services transferred over time — 62,900 10,335 117,393 190,628 Total revenue by timing of revenue recognition $ 846,560 $ 78,880 $ 13,167 $ 129,279 $ 1,067,886 Nine Months Ended July 27, 2024 Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services Total Product lines: Optical Networking $ 1,862,917 $ — $ — $ — $ 1,862,917 Routing and Switching 320,113 — — — 320,113 Platform Software and Services — 258,402 — — 258,402 Blue Planet Automation Software and Services — — 54,167 — 54,167 Maintenance Support and Training — — — 225,869 225,869 Installation and Deployment — — — 132,993 132,993 Consulting and Network Design — — — 36,382 36,382 Total revenue by product line $ 2,183,030 $ 258,402 $ 54,167 $ 395,244 $ 2,890,843 Timing of revenue recognition: Products and services at a point in time $ 2,183,030 $ 69,149 $ 15,530 $ 29,904 $ 2,297,613 Services transferred over time — 189,253 38,637 365,340 593,230 Total revenue by timing of revenue recognition $ 2,183,030 $ 258,402 $ 54,167 $ 395,244 $ 2,890,843 Nine months ended July 29, 2023 Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services Total Product lines: Optical Networking $ 2,239,180 $ — $ — $ — $ 2,239,180 Routing and Switching 377,378 — — — 377,378 Platform Software and Services — 221,768 — — 221,768 Blue Planet Automation Software and Services — — 49,139 — 49,139 Maintenance Support and Training — — — 213,938 213,938 Installation and Deployment — — — 120,901 120,901 Consulting and Network Design — — — 34,758 34,758 Total revenue by product line $ 2,616,558 $ 221,768 $ 49,139 $ 369,597 $ 3,257,062 Timing of revenue recognition: Products and services at a point in time $ 2,616,558 $ 48,290 $ 14,143 $ 36,553 $ 2,715,544 Services transferred over time — 173,478 34,996 333,044 541,518 Total revenue by timing of revenue recognition $ 2,616,558 $ 221,768 $ 49,139 $ 369,597 $ 3,257,062 Ciena reports its sales geographically using the following markets: (i) the United States, Canada, the Caribbean and Latin America (“Americas”); (ii) Europe, Middle East and Africa (“EMEA”); and (iii) Asia Pacific, Japan and India (“APAC”). Within each geographic area, Ciena maintains specific teams or personnel that focus on a particular region, country, customer or market vertical. These teams include sales management, account salespersons, and sales engineers, as well as services professionals and commercial management personnel. The following table reflects Ciena’s geographic distribution of revenue based principally on the relevant location for Ciena’s delivery of products and performance of services. For the periods indicated, Ciena’s geographic distribution of revenue was as follows (in thousands): Quarter Ended Nine Months Ended July 27, July 29, July 27, July 29, 2024 2023 2024 2023 Geographic distribution: Americas $ 718,605 $ 749,479 $ 2,099,680 $ 2,308,934 EMEA 135,009 152,834 498,212 479,053 APAC 88,694 165,573 292,951 469,075 Total revenue by geographic distribution $ 942,308 $ 1,067,886 $ 2,890,843 $ 3,257,062 Ciena’s revenue includes $676.0 million and $685.8 million of United States revenue for the third quarter of fiscal 2024 and 2023, respectively. For th e nine months ended July 27, 2024 and July 29, 2023 , United States revenue was $2.0 billion and $2.1 billion, respectively. No other country accounted for 10% or more of total revenue for the periods indicated in the above table. For the periods indicated, the only customers that accounted for at least 10% of Ciena’s revenue were as follows (in thousands): Quarter Ended Nine Months Ended July 27, July 29, July 27, July 29, 2024 2023 2024 2023 Cloud Provider $ 137,184 $ 124,897 $ 331,631 $ 369,678 AT&T 113,082 n/a 324,787 357,382 Total $ 250,266 $ 124,897 $ 656,418 $ 727,060 _____________________________________ n/a Denotes revenue representing less than 10% of total revenue for the period AT&T purchased products and services from each of Ciena’s operating segments for each of the periods presented. The cloud provider noted in the above table purchased products from each of Ciena’s operating segments excluding Blue Planet ® Automation Software and Services for each of the periods presented. A description of each of Ciena’s operating segments is set forth below: • Networking Platforms revenue reflects sales of Ciena’s Optical Networking and Routing and Switching product lines. • Optical Networking - includes the 6500 Packet-Optical Platform, the Waveserver® modular interconnect system, the 6500 Reconfigurable Line System (RLS), the 5400 family of Packet-Optical Platforms, and the Coherent ELS open line system. This product line also includes the WaveLogic 5 Nano (WL5n) 100G-400G coherent pluggable transceivers. • Routing and Switching - includes the 3000 family of service delivery platforms and the 5000 family of service aggregation. This product line also includes the 6500 Packet Transport System (PTS), which combines packet switching, control plane operation, and integrated optics, the 8100 Coherent IP networking platforms, the 8700 Packetwave Platform, virtualization software and Ciena’s WaveRouter ® product. This product line also includes SD-Edge software and passive optical network (PON) routing and switching portfolio products. The Networking Platforms segment also includes sales of operating system software and enhanced software features embedded in each of the product lines above. Revenue from this segment is included in product revenue on the Condensed Consolidated Statements of Operations. Operating system software and enhanced software features embedded in Ciena hardware are each considered distinct performance obligations for which the revenue is generally recognized upfront at a point in time upon transfer of control. • Platform Software and Services offerings provide domain control management, analytics, data and planning tools and applications to assist customers in managing their networks, including by creating more efficient operations and providing more visibility into their networks. Ciena’s platform software includes its Navigator Network Control Suite TM (“Navigator NCS”) domain controller solution, its suite of Navigator NCS applications, previously referred to as “Manage, Control and Plan (MCP),” its OneControl Unified Management System, and planning tools and legacy software solutions that support Ciena’s installed base of network solutions. Platform software-related services revenue includes sales of subscription, installation, support, and consulting services related to Ciena’s software platforms, operating system software and enhanced software features embedded in each of the Networking Platforms product lines above. Revenue from the software portion of this segment is included in product revenue on the Condensed Consolidated Statements of Operations. Revenue from services portions of this segment is included in services revenue on the Condensed Consolidated Statements of Operations. • Blue Planet Automation Software and Services is a comprehensive, cloud native, and standards-based software portfolio, together with related services, that enables customers to realize digital transformation through the automation of the services lifecycle. Ciena’s Blue Planet Automation Platform includes multi-domain service orchestration (MDSO), inventory management (BPI), route optimization and analysis (ROA), multi-cloud orchestration (MCO), and unified assurance and analytics (UAA). Services revenue includes sales of subscription, installation, support, consulting and design services related to Ciena’s Blue Planet Automation Platform. Revenue from the software portion of this segment is included in product revenue on the Condensed Consolidated Statements of Operations. Revenue from services portions of this segment is included in services revenue on the Condensed Consolidated Statements of Operations. Ciena’s software platform revenue typically reflects either perpetual or term-based software licenses, and these sales are considered distinct performance obligations where revenue is generally recognized upfront at a point in time upon transfer of control. Revenue from software subscription and support is recognized ratably over the period during which the services are performed. Revenue from professional services for solution customization, software and solution support services, consulting and design, and build-operate-transfer services relating to Ciena’s software offerings is recognized over time with Ciena applying the input method to determine the amount of revenue to be recognized in a given period. • Global Services revenue reflects sales of a broad range of Ciena’s services for maintenance support and training, installation and deployment, and consulting and network design activities. Revenue from this segment is included in services revenue on the Condensed Consolidated Statements of Operations. Ciena’s Global Services are considered a distinct performance obligation where revenue is generally recognized over time. Revenue from maintenance support is recognized ratably over the period during which the services are performed. Revenue from installation and deployment services and consulting and network design services is recognized over time with Ciena applying the input method to determine the amount of revenue to be recognized in a given period. Revenue from training services is generally recognized at a point in time upon completion of the service. Contract Balances The following table provides information about receivables, contract assets and contract liabilities (deferred revenue) from contracts with customers as of the dates indicated (in thousands): Balance at July 27, 2024 Balance at October 28, 2023 Accounts receivable, net $ 899,877 $ 1,003,876 Contract assets for unbilled accounts receivable, net $ 142,769 $ 150,312 Deferred revenue $ 257,085 $ 228,460 Ciena’s contract assets represent unbilled accounts receivable, net where transfer of a product or service has occurred but invoicing is conditional upon completion of future performance obligations. These amounts are primarily related to installation and deployment and professional services arrangements where transfer of control has occurred, but Ciena has not yet invoiced the customer. Contract assets are included in prepaid expenses and other in the Condensed Consolidated Balance Sheets. See Note 10 below. Deferred revenue represents contract liabilities and consists of advanced payments against non-cancelable customer orders received prior to revenue recognition. Ciena recognized approximately $130.5 million and $119.8 million of revenue during the first nine months of fiscal 2024 and 2023, respectively, that was included in the deferred revenue balance as of October 28, 2023 and October 29, 2022, respectively. Revenue recognized due to changes in transaction price from performance obligations satisfied or partially satisfied in previous peri ods was immaterial duri ng the nine months ended July 27, 2024 and July 29, 2023. Capitalized Contract Acquisition Costs Capitalized contract acquisition costs consist of deferred sales commissions, and were $25.5 million and $30.2 million as of July 27, 2024 and October 28, 2023, respectively. Capitalized contract acquisition costs were included in (i) prepaid expenses and other, and (ii) other long-term assets. The amortization expense associated with these costs was $22.9 million and $26.0 million during the first nine months of fiscal 2024 and 2023, respectively, and was included in selling and marketing expense on the Condensed Consolidated Statements of Operations. Remaining Performance Obligations Remaining Performance Obligations (“RPO”) are comprised of non-cancelable customer purchase orders for products and services that are awaiting transfer of control for revenue recognition under the applicable contract terms. As of July 27, 2024, the aggregate amount of RPO was $1.6 billion. As of July 27, 2024, Ciena expects approximately 78% of the RPO balance to be recognized as revenue within the next 12 months. |
SIGNIFICANT ASSET IMPAIRMENT AN
SIGNIFICANT ASSET IMPAIRMENT AND RESTRUCTURING COSTS | 9 Months Ended |
Jul. 27, 2024 | |
Restructuring and Related Activities [Abstract] | |
SIGNIFICANT ASSET IMPAIRMENT AND RESTRUCTURING COSTS | SIGNIFICANT ASSET IMPAIRMENT AND RESTRUCTURING COSTS Restructuring Costs Ciena has undertaken a number of restructuring activities intended to reduce expense and to align its workforce and costs with market opportunities, product development, and business strategies. The following table sets forth the restructuring activity and balance of the restructuring liability accounts, which are included in accrued liabilities and other short-term obligations on the Condensed Consolidated Balance Sheets, for the nine months ended July 27, 2024 (in thousands): Workforce Other restructuring activities Total Balance at October 28, 2023 $ 1,913 $ — $ 1,913 Charges 13,708 (1) 8,279 (2) 21,987 Cash payments (14,379) (8,279) (22,658) Balance at July 27, 2024 $ 1,242 $ — $ 1,242 Current restructuring liabilities $ 1,242 $ — $ 1,242 (1) Reflects a global workforce reduction of approximately 390 employees during the nine months ended July 27, 2024 as part of a business optimization strategy to improve gross margin, constrain operating expense and redesign certain business processes. (2) Primarily represents costs related to restructured real estate facilities and the redesign of certain business processes associated with Ciena’s supply chain and distribution structure reorganization. The following table sets forth the restructuring activity and balance of the restructuring liability accounts, which are included in accrued liabilities and other short-term obligations on the Condensed Consolidated Balance Sheets for the nine months ended July 29, 2023 (in thousands): Workforce Other restructuring activities Total Balance at October 29, 2022 $ 1,215 $ 4,620 $ 5,835 Charges 4,509 (1) 12,116 (2) 16,625 Cash payments (4,920) (16,736) (21,656) Balance at July 29, 2023 $ 804 $ — $ 804 Current restructuring liabilities $ 804 $ — $ 804 (1) Reflects employee costs associated with workforce reductions during the nine months ended July 29, 2023 as part of a business optimization strategy to improve gross margin, constrain operating expense, and redesign certain business processes. (2) Primarily represents costs related to restructured real estate facilities and the redesign of certain business processes associated with Ciena’s supply chain and distribution structure reorganization. |
INTEREST AND OTHER INCOME, NET
INTEREST AND OTHER INCOME, NET | 9 Months Ended |
Jul. 27, 2024 | |
Other Income and Expenses [Abstract] | |
INTEREST AND OTHER INCOME, NET | INTEREST AND OTHER INCOME, NET The components of interest and other income, net, are as follows for the periods indicated (in thousands): Quarter Ended Nine Months Ended July 27, July 29, July 27, July 29, 2024 2023 2024 2023 Interest income $ 15,876 $ 12,835 $ 46,309 $ 30,365 Gains (losses) on non-hedge designated foreign currency forward contracts 519 1,679 2,517 (2,885) Foreign currency exchange losses (1,611) (4,031) (11,215) (2,927) Gain (loss) on equity investments, net — (87) — 26,368 Other (771) (209) (1,151) (210) Interest and other income, net $ 14,013 $ 10,187 $ 36,460 $ 50,711 During the first quarter of fiscal 2023, the acquisition of Tibit Communications, Inc. (“Tibit”) by Ciena triggered the remeasurement of Ciena’s previously held investment in Tibit to fair value, which resulted in Ciena recognizing a gain on its equity investment of $26.5 million. Ciena Corporation, as the U.S. parent entity, uses the U.S. Dollar as its functional currency; however, some of its foreign branch offices and subsidiaries use local currencies as their functional currencies . During the first nine months of fiscal 2024 and fiscal 2023, Ciena recorded $11.2 million and $2.9 million, respectively, in foreign currency exchange rate losses a s a result of monetary assets and liabilities that were transacted in a currency other than Ciena’s functional currency. The related remeasurement adjustments were recorded in interest and other income, net, on the Condensed Consolidated Statements of Operations. From time to time, Ciena uses foreign currency forwards to hedge this type of balance sheet exposure. These forwards are not designated as hedges for accounting purposes, and any net gain or loss associated with these derivatives is reported in interest and other income, net, on the Condensed Consolidated Statements of Operations. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jul. 27, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESThe effective tax rate for the third quarter and nine months ended July 27, 2024 was lower than the effective tax rate for the third quarter and nine months ended July 29, 2023, primarily due to the reduction in the amount of research and development expenses capitalized with respect to foreign subsidiaries. |
CASH EQUIVALENT, SHORT-TERM AND
CASH EQUIVALENT, SHORT-TERM AND LONG-TERM INVESTMENTS | 9 Months Ended |
Jul. 27, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
CASH EQUIVALENT, SHORT-TERM AND LONG-TERM INVESTMENTS | CASH EQUIVALENT, SHORT-TERM AND LONG-TERM INVESTMENTS As of the dates indicated, investments classified as available-for-sale are comprised of the following (in thousands): July 27, 2024 Amortized Cost Gross Unrealized Gross Unrealized Estimated Fair U.S. government obligations $ 260,879 $ 250 $ (119) $ 261,010 Corporate debt securities 57,791 64 (19) 57,836 Time deposits 96,127 7 — 96,134 $ 414,797 $ 321 $ (138) $ 414,980 Included in cash equivalents $ 85,337 $ — $ — $ 85,337 Included in short-term investments 217,761 158 (109) 217,810 Included in long-term investments 111,699 163 (29) 111,833 $ 414,797 $ 321 $ (138) $ 414,980 October 28, 2023 Amortized Cost Gross Unrealized Gross Unrealized Estimated Fair U.S. government obligations $ 170,260 $ 28 $ (379) $ 169,909 Corporate debt securities 59,683 1 (115) 59,569 Time deposits 138,830 4 (5) 138,829 $ 368,773 $ 33 $ (499) $ 368,307 Included in cash equivalents $ 129,276 $ — $ — $ 129,276 Included in short-term investments 105,042 4 (293) 104,753 Included in long-term investments 134,455 29 (206) 134,278 $ 368,773 $ 33 $ (499) $ 368,307 The following table summarizes the final legal maturities of debt investments as of July 27, 2024 (in thousands): Amortized Estimated Less than one year $ 303,098 $ 303,147 Due in 1-2 years 111,699 111,833 $ 414,797 $ 414,980 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Jul. 27, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS As of the dates indicated, the following tables summarize the assets and liabilities that are recorded at fair value on a recurring basis (in thousands): July 27, 2024 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 427,818 $ — $ — $ 427,818 Bond mutual fund 160,513 — — 160,513 Time deposits 96,134 — — 96,134 Deferred compensation plan assets 15,590 — — 15,590 U.S. government obligations — 261,010 — 261,010 Corporate debt securities — 57,836 — 57,836 Foreign currency forward contracts — 1,232 — 1,232 Interest rate swaps — 12,316 — 12,316 Total assets measured at fair value $ 700,055 $ 332,394 $ — $ 1,032,449 Liabilities: Foreign currency forward contracts $ — $ 7,271 $ — $ 7,271 Total liabilities measured at fair value $ — $ 7,271 $ — $ 7,271 October 28, 2023 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 661,101 $ — $ — $ 661,101 Bond mutual fund 104,171 — — 104,171 Time deposits 138,829 — — 138,829 Deferred compensation plan assets 11,456 — — 11,456 U.S. government obligations — 169,909 — 169,909 Corporate debt securities — 59,569 — 59,569 Foreign currency forward contracts — 1,119 — 1,119 Interest rate swaps — 24,953 — 24,953 Total assets measured at fair value $ 915,557 $ 255,550 $ — $ 1,171,107 Liabilities: Foreign currency forward contracts $ — $ 14,509 $ — $ 14,509 Total liabilities measured at fair value $ — $ 14,509 $ — $ 14,509 As of the dates indicated, the assets and liabilities above are presented on Ciena’s Condensed Consolidated Balance Sheets as follows (in thousands): July 27, 2024 Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 669,655 $ 4,013 $ — $ 673,668 Short-term investments 14,810 203,000 — 217,810 Prepaid expenses and other — 1,232 — 1,232 Long-term investments — 111,833 — 111,833 Other long-term assets 15,590 12,316 — 27,906 Total assets measured at fair value $ 700,055 $ 332,394 $ — $ 1,032,449 Liabilities: Accrued liabilities and other short-term obligations $ — $ 7,271 $ — $ 7,271 Total liabilities measured at fair value $ — $ 7,271 $ — $ 7,271 October 28, 2023 Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 891,788 $ 2,760 $ — $ 894,548 Short-term investments 12,313 92,440 — 104,753 Prepaid expenses and other — 1,119 — 1,119 Long-term investments — 134,278 — 134,278 Other long-term assets 11,456 24,953 — 36,409 Total assets measured at fair value $ 915,557 $ 255,550 $ — $ 1,171,107 Liabilities: Accrued liabilities and other short-term obligations $ — $ 14,509 $ — $ 14,509 Total liabilities measured at fair value $ — $ 14,509 $ — $ 14,509 Ciena did not have any transfers between Level 1 and Level 2 fair value measurements during the periods presented. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Jul. 27, 2024 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES As of the dates indicated, inventories are comprised of the following (in thousands): July 27, October 28, Raw materials $ 612,768 $ 664,797 Work-in-process 44,364 55,242 Finished goods 313,977 314,168 Deferred cost of goods sold 35,983 66,634 Gross inventories 1,007,092 1,100,841 Reserve for inventory excess and obsolescence (69,693) (50,003) Inventories, net $ 937,399 $ 1,050,838 Ciena has been expanding its manufacturing capacity and had been accumulating raw materials inventory of components that are available, in some cases with expanded lead times, in an effort to prepare Ciena to produce finished goods more quickly upon the easing of supply constraints for certain common components. During the first nine months of fiscal 2024 Ciena reduced its raw materials inventory of components due to the consumption of raw materials in excess of purchases. Ciena makes estimates about future customer demand for its products when establishing the appropriate reserve for excess and obsolete inventory. For the periods presented, future demand was calculated using both customer backlog and future forecasted sales. Generally, Ciena’s customers may cancel or change their orders with limited advance notice, or they may decide not to accept its products and services, although instances of both cancellation and non-acceptance are rare. Ciena writes down its inventory for estimated obsolescence or unmarketable inventory by an amount equal to the difference between the cost of inventory and the estimated net realizable value based on assumptions about future demand, which are affected by changes in Ciena’s strategic direction, discontinuance of a product or introduction of newer versions of products, declines in the sales of or forecasted demand for certain products, and general market conditions. During the first nine months of fiscal 2024, Ciena recorded a provision for inventory excess and obsolescence of $35.4 million, primarily related to a decrease in the forecasted demand for certain Networking Platforms products. Deductions from the provision for excess and obsolete inventory relate primarily to disposal activities. |
PREPAID EXPENSES AND OTHER
PREPAID EXPENSES AND OTHER | 9 Months Ended |
Jul. 27, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER | PREPAID EXPENSES AND OTHER As of the dates indicated, prepaid expenses and other are comprised of the following (in thousands): July 27, October 28, Cash advances to contract manufacturers (1) $ 182,886 $ — Contract assets for unbilled accounts receivable, net 142,769 150,312 Prepaid VAT and other taxes 112,997 96,724 Prepaid expenses 53,950 58,954 Product demonstration equipment, net (2) 43,854 40,682 Other non-trade receivables 42,482 33,408 Capitalized contract acquisition costs 18,033 23,326 Deferred deployment expense 1,805 1,170 Foreign currency forward contracts 1,232 1,118 $ 600,008 $ 405,694 (1) Amount reflects refundable cash advances to a third-party contract manufacturer for potential future inventory purchases and transition and logistic costs for future asset relocation. Ciena has initiated a strategic reengineering and realignment of its supply chain, including changes to its systems, processes, partners and people, and this cash advance assists in facilitating such activities. (2) Depreciation of product demonstration equipment was $6.1 million during the first nine months of fiscal 2024 and $5.9 million during the first nine months of fiscal 2023. For further discussion on contract assets and capitalized contract acquisition costs, see Note 3 above. |
OTHER BALANCE SHEET DETAILS
OTHER BALANCE SHEET DETAILS | 9 Months Ended |
Jul. 27, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
OTHER BALANCE SHEET DETAILS | OTHER BALANCE SHEET DETAILS As of the dates indicated, other long-term assets are comprised of the following (in thousands): July 27, October 28, Maintenance spares inventory, net $ 68,100 $ 54,042 Equity investments (1) 21,730 48 Deferred compensation plan assets 15,590 11,456 Forward starting interest rate swaps 12,316 24,953 Capitalized contract acquisition costs 7,423 6,879 Cloud computing arrangements (2) 6,946 8,589 Deferred debt issuance costs, net 1,806 1,956 Restricted cash 164 168 Other 11,438 8,362 $ 145,513 $ 116,453 (1) Increase is due to an equity investment in a privately held technology company d uring fiscal 2024. (2) Amortization of cloud computing arrangements was $3.4 million and $1.9 million during the first nine months of fiscal 2024 and fiscal 2023, respectively. As of the dates indicated, accrued liabilities and other short-term obligations are comprised of the following (in thousands): July 27, October 28, Compensation, payroll related tax and benefits $ 120,889 $ 159,530 Warranty 49,933 57,089 Vacation 31,419 29,503 Interest payable 8,806 4,514 Foreign currency forward contracts 7,271 14,509 Income taxes payable 6,537 16,341 Finance lease liabilities 4,306 3,953 Other 118,077 145,980 $ 347,238 $ 431,419 The following table summarizes the activity in Ciena’s accrued warranty for the periods indicated (in thousands): Beginning Balance Current Period Provisions Settlements Ending Balance Nine Months Ended July 29, 2023 $ 45,503 18,860 (14,859) $ 49,504 Nine Months Ended July 27, 2024 $ 57,089 14,708 (21,864) $ 49,933 As of the dates indicated, deferred revenue is comprised of the following (in thousands): July 27, October 28, Products $ 20,081 $ 28,353 Services 237,004 200,107 Total deferred revenue 257,085 228,460 Less current portion (179,457) (154,419) Long-term deferred revenue $ 77,628 $ 74,041 |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended |
Jul. 27, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS Foreign Currency Derivatives Ciena conducts business globally in numerous currencies, and thus is exposed to adverse foreign currency exchange rate changes. To hedge this exposure, Ciena enters into foreign currency contracts. Ciena does not enter into such contracts for speculative purposes. As of July 27, 2024 and October 28, 2023, Ciena had forward contracts to hedge its foreign exchange exposure in order to reduce variability in certain currencies for expenses principally related to research and development activities. The notional amount of these contracts was approximately $286.2 million and $367.3 million as of July 27, 2024 and October 28, 2023, respectively. These foreign exchange contracts have maturities of 24 months or less and have been designated as cash flow hedges. As of July 27, 2024 and October 28, 2023, Ciena had forward contracts designated as net investment hedges to minimize the effect of foreign exchange rate movements on its net investments in foreign operations. In April 2024, Ciena terminated a portion of its existing net investment hedges for a cash loss of $0.6 million, which was recorded to Other Comprehensive Income (Loss). Ciena replaced its terminated net investment hedges with new net investment hedges. The notional amount of these contracts was approximately $65.7 million and $48.0 million as of July 27, 2024 and October 28, 2023, respectively. These foreign exchange contracts have maturities of 36 months or less and have been designated as net investment hedges. As of July 27, 2024 and October 28, 2023, Ciena had forward contracts in place to hedge its foreign exchange exposure in order to reduce the variability in various currencies of certain balance sheet items. The notional amount of these contracts was approximately $142.6 million and $226.3 million as of July 27, 2024 and October 28, 2023, respectively. These foreign exchange contracts have maturities of 12 months or less and have not been designated as hedges for accounting purposes. Interest Rate Derivatives Ciena is exposed to floating rates of interest on its term loan borrowings (see Note 13 below) and has hedged such risk by entering into floating-to-fixed interest rate swap arrangements. In April 2022, Ciena entered into forward starting interest rate swaps to fix the Secured Overnight Financing Rate (“SOFR”) for the first $350.0 million of its floating rate debt at 2.968% from September 2023 through September 2025 (“2025 interest rate swaps”) . The total notional amount of the 2025 interest swaps was $350.0 million as of July 27, 2024 and October 28, 2023. In January 2023, Ciena entered into interest rate swaps to fix SOFR for an additional $350.0 million of its floating rate debt at 3.47% through January 2028. The total notional amount of these interest rate swaps in effect as of July 27, 2024 and October 28, 2023 was $350.0 million. In December 2023, Ciena entered into forward starting interest rate swaps to fix SOFR for an additional $350.0 million of its floating rate debt at 3.287% from September 2025 through December 2028 (“2028 forward starting interest rate swaps”). The total notional amount of the 2028 forward starting interest rate swaps effective September 2025 was $350.0 million as of July 27, 2024. Ciena expects the variable rate payments to be received under the terms of these interest rate swaps to offset exactly the forecasted variable rate payments on the equivalent notional amount of the 2030 New Term Loan (as defined in Note 13 below). These derivative contracts have been designated as cash flow hedges. Other information regarding Ciena’s derivatives is immaterial for separate financial statement presentation. See Note 5 and Note 8 above. |
SHORT-TERM AND LONG-TERM DEBT
SHORT-TERM AND LONG-TERM DEBT | 9 Months Ended |
Jul. 27, 2024 | |
Debt Disclosure [Abstract] | |
SHORT-TERM AND LONG-TERM DEBT | SHORT-TERM AND LONG-TERM DEBT Outstanding Term Loan Payable 2030 New Term Loan On October 24, 2023, Ciena entered into an Incremental Amendment Agreement to its Credit Agreement to which Ciena incurred a new tranche of senior secured term loans in an aggregate principal amount of $1.2 billion maturing on October 24, 2030 (the “2030 New Term Loan”) and a new senior secured revolving credit facility of $300.0 million (the “Revolving Credit Facility”). The 2030 New Term Loan requires Ciena to make installment payments of $2.9 million quarterly, or $11.7 million annually, with the remaining balance payable at maturity. The net carrying value of the 2030 New Term Loan was comprised of the following as of the date indicated (in thousands): July 27, 2024 October 28, 2023 Principal Balance Unamortized Discount Deferred Debt Issuance Costs Net Carrying Value Net Carrying Value 2030 New Term Loan $ 1,164,150 $ (4,560) $ (5,830) $ 1,153,760 $ 1,159,371 Deferred debt issuance costs that were deducted from the carrying amount of the 2030 New Term Loan totaled $5.8 million as of July 27, 2024 and $5.5 million at October 28, 2023. Deferred debt issuance costs are amortized using the straight-line method, which approximates the effect of the effective interest rate, through the maturity of the 2030 New Term Loan. The amortization of deferred debt issuance costs for the 2030 New Term Loan is included in interest expense and was approximately $0.7 million during the first nine months of fiscal 2024. As of July 27, 2024, the estimated fair value of the 2030 New Term Loan was $1.2 billion. The 2030 New Term Loan is categorized as Level 2 in the fair value hierarchy. Ciena estimated the fair value of its 2030 New Term Loan using a market approach based on observable inputs, such as current market transactions involving comparable securities. Refinanced Term Loans The proceeds of the 2030 New Term Loan, net of original issuance discount, was used to repay in full $1.2 billion of outstanding principal of the 2025 Term Loan (as defined below) and the 2030 Term Loan (as defined below), together the Refinanced Term Loans, including accrued interest. 2025 Term Loan On January 19, 2023, pursuant to the Incremental Agreement (as defined below) to the Credit Agreement, the Credit Agreement was amended to replace the London Interbank Offered Rate (LIBOR) with SOFR for Ciena’s senior secured term loan maturing on September 28, 2025 (the “2025 Term Loan”) in response to pending impact of FASB Accounting Standards Codification 848, Reference Rate Reform. Deferred debt issuance costs are amortized using the straight-line method, which approximates the effect of the effective interest rate method, through the maturity of the 2025 Term Loan. The amortization of deferred debt issuance costs for the 2025 Term Loan is included in interest expense, and was $0.5 million for the first nine months of fiscal 2023. 2030 Term Loan On January 19, 2023, Ciena entered into an Incremental Joinder and Amendment Agreement (the “Incremental Agreement”) to its Credit Agreement, dated July 15, 2014, as amended, by and among Ciena, the lenders party thereto and Bank of America, N.A., as administrative agent, pursuant to which Ciena incurred a new tranche of senior secured term loans in an aggregate principal amount of $500.0 million and maturing on January 19, 2030 (the “2030 Term Loan”). Net of original issue discount and debt issuance costs, the $492.3 million in proceeds from the 2030 Term Loan were used for general corporate purposes. Deferred debt issuance costs are amortized using the straight-line method, which approximates the effect of the effective interest rate method, through the maturity of the 2030 Term Loan. The amortization of deferred debt issuance costs for the 2030 Term Loan is included in interest expense, and was $0.4 million for the first nine months of fiscal 2023. Outstanding Senior Notes Payable 2030 Notes On January 18, 2022, Ciena entered into an indenture among Ciena, as issuer, certain domestic subsidiaries of Ciena, as guarantors, and U.S. Bank National Association, as trustee, pursuant to which Ciena issued $400.0 million in aggregate principal amount of 4.00% fixed-rate senior notes due 2030 (the “2030 Notes”). The net carrying value of the 2030 Notes was comprised of the following as of the dates indicated (in thousands): July 27, 2024 October 28, 2023 Principal Balance Deferred Debt Issuance Costs Net Carrying Value Net Carrying Value 2030 Notes $ 400,000 $ (3,745) $ 396,255 $ 395,735 Deferred debt issuance costs that were deducted from the carrying amount of the 2030 Notes totaled $3.7 million as of July 27, 2024 and $4.3 million as of October 28, 2023. Deferred debt issuance costs are amortized using the straight-line method, which approximates the effect of the effective interest rate, through the maturity of the 2030 Notes. The amortization of deferred debt issuance costs for the 2030 Notes is included in interest expense, and was approximately $0.5 million during both the first nine months of fiscal 2024 and fiscal 2023 . As of July 27, 2024, the estimated fair value of the 2030 Notes was $367.0 million. The 2030 Notes are categorized as Level 2 in the fair value hierarchy. Ciena estimated the fair value of its 2030 Notes using a market approach based on observable inputs, such as current market transactions involving comparable securities. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Jul. 27, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in accumulated balances of other comprehensive income (“AOCI”), net of tax, for the nine months ended July 27, 2024 (in thousands): Unrealized Gain (Loss) on Available-for-sale Securities Foreign Currency Forward Contracts Interest Rate Swaps Cumulative Total Balance at October 28, 2023 $ (372) $ (8,156) $ 18,962 $ (48,201) $ (37,767) Other comprehensive gain (loss) before reclassifications 493 (112) 1,728 2,961 5,070 Amounts reclassified from AOCI — 3,848 (11,343) — (7,495) Balance at July 27, 2024 $ 121 $ (4,420) $ 9,347 $ (45,240) $ (40,192) The following table summarizes the changes in AOCI, net of tax, for the nine months ended July 29, 2023 (in thousands): Unrealized Gain (Loss) on Available-for-sale Securities Foreign Currency Forward Contracts Interest Rate Swaps Cumulative Total Balance at October 29, 2022 $ (2,965) $ (10,197) $ 9,397 $ (42,880) $ (46,645) Other comprehensive gain before reclassifications 2,075 17,070 11,763 17,981 48,889 Amounts reclassified from AOCI — (7,756) (6,266) — (14,022) Balance at July 29, 2023 $ (890) $ (883) $ 14,894 $ (24,899) $ (11,778) All amounts reclassified from AOCI, related to settlements on foreign currency forward contracts designated as cash flow hedges, impacted research and development expense on the Condensed Consolidated Statements of Operations. All amounts reclassified from AOCI, related to settlements on interest rate swaps designated as cash flow hedges, impacted interest and other income, net, on the Condensed Consolidated Statements of Operations. |
EARNINGS_PER SHARE CALCULATION
EARNINGS PER SHARE CALCULATION | 9 Months Ended |
Jul. 27, 2024 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE CALCULATION | EARNINGS PER SHARE CALCULATION Basic net income per common share (“Basic EPS”) is computed using the weighted average number of common shares outstanding. Diluted net income per potential common share (“Diluted EPS”) is computed using the weighted average number of the following, in each case, to the extent that the effect is not anti-dilutive: (i) common shares outstanding; (ii) shares issuable upon vesting of stock unit awards; and (iii) shares issuable under Ciena’s employee stock purchase plan and upon exercise of outstanding stock options, using the treasury stock method. The following table presents the calculation of Basic and Diluted EPS for the periods indicated (in thousands, except per share amounts): Quarter Ended Nine Months Ended July 27, July 29, July 27, July 29, 2024 2023 2024 2023 Net income $ 14,230 $ 29,733 $ 46,928 $ 163,628 Basic weighted average shares outstanding 144,394 149,690 144,876 149,472 Effect of dilutive potential common shares 967 287 919 395 Diluted weighted average shares 145,361 149,977 145,795 149,867 Basic EPS $ 0.10 $ 0.20 $ 0.32 $ 1.09 Diluted EPS $ 0.10 $ 0.20 $ 0.32 $ 1.09 Antidilutive employee share-based awards, excluded 690 3,383 1,286 2,567 |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 9 Months Ended |
Jul. 27, 2024 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | STOCKHOLDERS’ EQUITY Stock Repurchase Program On December 9, 2021, Ciena announced that its Board of Directors authorized a program to repurchase up to $1.0 billion of its common stock. Under this program, during the first nine months of fiscal 2024, Ciena repurchased an additional 2.4 million shares of its common stock for an aggregate purchase price of approximately $118.0 million which equates to an average price of $48.86 per share. As of July 27, 2024, Ciena (i) has repurchased 16.5 million shares for an aggregate purchase price of $868.0 million at an average price of $52.54 per share and (ii) has an aggregate of $132.0 million authorized and remaining under its stock repurchase program. Ciena is required to allocate the purchase price for the shares of Ciena’s stock repurchased as a reduction of common stock and additional paid-in capital. Stock Repurchases Related to Stock Unit Award Tax Withholdings Ciena repurchases shares of its common stock to satisfy employee tax withholding obligations due on vesting of stock unit awards. The related purchase price of $33.4 million for the shares of Ciena’s stock repurchased during the first nine months of fiscal 2024 is reflected as a reduction to stockholders’ equity. Ciena is required to allocate the purchase price of the repurchased shares as a reduction of common stock and additional paid-in capital. |
SHARE-BASED COMPENSATION EXPENS
SHARE-BASED COMPENSATION EXPENSE | 9 Months Ended |
Jul. 27, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION EXPENSE | SHARE-BASED COMPENSATION EXPENSE At Ciena’s 2024 Annual Meeting of Stockholders on March 21, 2024, Ciena’s stockholders approved an amendment to the Ciena Corporation 2017 Omnibus Incentive Plan (the “2017 Plan”), effective as of such date, to (i) increase the number of shares available for issuance thereunder by 10.1 million shares, and (ii) increase the recoupment period for misconduct relating to accounting restatements from 12 months to three years. As of July 27, 2024, the total number of shares authorized for issuance under the 2017 Plan is 31.2 million and approximately 10.9 million shares remained available for issuance thereunder. The following table summarizes share-based compensation expense for the periods indicated (in thousands): Quarter Ended Nine Months Ended July 27, July 29, July 27, July 29, 2024 2023 2024 2023 Products $ 1,660 $ 1,118 $ 4,738 $ 3,324 Services 3,122 2,687 9,486 7,643 Share-based compensation expense included in cost of goods sold 4,782 3,805 14,224 10,967 Research and development 13,118 10,954 40,064 30,919 Selling and marketing 10,315 8,770 31,786 25,949 General and administrative 9,257 9,377 29,211 27,313 Share-based compensation expense included in operating expense 32,690 29,101 101,061 84,181 Share-based compensation expense capitalized in inventory, net (114) 127 148 257 Total share-based compensation expense $ 37,358 $ 33,033 $ 115,433 $ 95,405 As of July 27, 2024, total unrecognized share-based compensation expense was approximately $251.9 million , which relates to unvested stock unit awards and is expected to be recognized over a weighted-average period of 1.4 years. |
SEGMENTS AND ENTITY-WIDE DISCLO
SEGMENTS AND ENTITY-WIDE DISCLOSURES | 9 Months Ended |
Jul. 27, 2024 | |
Segment Reporting [Abstract] | |
SEGMENTS AND ENTITY-WIDE DISCLOSURES | SEGMENTS AND ENTITY-WIDE DISCLOSURES Segment Reporting Ciena has the following operating segments for reporting purposes: (i) Networking Platforms; (ii) Platform Software and Services; (iii) Blue Planet Automation Software and Services; and (iv) Global Services. Ciena's long-lived assets, including equipment, building, furniture and fixtures, right-of-use (“ROU”) assets, finite-lived intangible assets, and maintenance spares, are not reviewed by Ciena's chief operating decision maker for purposes of evaluating performance and allocating resources. As of July 27, 2024, equipment, building, furniture and fixtures, net, totaled $299.2 million, and operating ROU assets totaled $28.7 million both of which support asset groups within Ciena’s four operating segments and unallocated selling and general and administrative activities. As of July 27, 2024, finite-lived intangible assets, goodwill, and maintenance spares are assigned to asset groups within the following segments (in thousands): July 27, 2024 Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services Total Other intangible assets, net $ 166,067 — 8,907 — $ 174,974 Goodwill $ 199,551 156,191 89,049 — $ 444,791 Maintenance spares, net $ — — — 68,100 $ 68,100 Segment Profit (Loss) Segment profit (loss) is determined based on internal performance measures used by Ciena’s chief executive officer to assess the performance of each operating segment in a given period. In connection with that assessment, the chief executive officer excludes the following items: selling and marketing costs; general and administrative costs; significant asset impairments and restructuring costs; amortization of intangible assets; acquisition and integration costs; interest and other income, net; interest expense; and provision for income taxes. The table below sets forth Ciena’s segment profit (loss) and the reconciliation to net income for the periods indicated (in thousands): Quarter Ended Nine Months Ended July 27, July 29, July 27, July 29, 2024 2023 2024 2023 Segment profit (loss): Networking Platforms $ 106,870 $ 171,380 $ 387,211 $ 588,281 Platform Software and Services 53,131 49,691 165,171 136,028 Blue Planet Automation Software and Services 4,705 (12,072) (10,127) (30,044) Global Services 50,351 50,550 145,776 137,190 Total segment profit 215,057 259,549 688,031 831,455 Less: Non-performance operating expenses Selling and marketing 121,520 118,266 373,749 367,156 General and administrative 58,248 49,349 162,504 151,184 Significant asset impairments and restructuring costs 1,361 4,174 21,987 16,625 Amortization of intangible assets 7,185 9,487 22,384 26,773 Acquisition and integration costs — 59 — 3,474 Add: Other non-performance financial items Interest and other income, net 14,013 10,187 36,460 50,711 Interest expense (24,401) (24,060) (72,038) (63,819) Less: Provision for income taxes 2,125 34,608 24,901 89,507 Net income $ 14,230 $ 29,733 $ 46,928 $ 163,628 Entity-Wide Reporting The following table reflects Ciena’s geographic distribution of equipment, building, furniture and fixtures, net, and operating ROU assets, with any country accounting for at least 10% of total equipment, building, furniture and fixtures, net, and operating ROU assets specifically identified. Equipment, building, furniture and fixtures, net, and operating ROU assets attributable to geographic regions outside of the United States and Canada are reflected as “Other International.” For the periods indicated, Ciena’s geographic distribution of equipment, building, furniture and fixtures, net, and operating ROU assets was as follows (in thousands): July 27, October 28, Canada $ 248,024 $ 229,707 United States 46,781 46,933 Other International 33,073 38,647 Total $ 327,878 $ 315,287 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jul. 27, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Tax Contingencies Ciena is subject to various tax liabilities arising in the ordinary course of business. Ciena does not expect that the ultimate settlement of these tax liabilities will have a material effect on its results of operations, financial position, or cash flows. Litigation Ciena is subject to various legal proceedings, claims, and other matters arising in the ordinary course of business, including those that relate to employment, commercial, tax, and other regulatory matters. Ciena is also subject to intellectual property related claims, including claims against third parties that may involve contractual indemnification obligations on the part of Ciena. Ciena does not expect that the ultimate costs to resolve such matters will have a material effect on its results of operations, financial position, or cash flows. Purchase Order Obligations Ciena has certain advanced orders for supply of certain long lead time components. As of July 27, 2024, Ciena had $1.5 billion in outstanding purchase order commitments to contract manufacturers and component suppliers for inventory. In certain instances, Ciena is permitted to cancel, reschedule or adjust these orders. Consequently, only a portion of this amount relates to firm, non-cancelable and unconditional obligations. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 27, 2024 | Jul. 29, 2023 | Jul. 27, 2024 | Jul. 29, 2023 | |
Pay vs Performance Disclosure | ||||
Net income | $ 14,230 | $ 29,733 | $ 46,928 | $ 163,628 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jul. 27, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Jul. 27, 2024 | |
Accounting Policies [Abstract] | |
Newly Issued Accounting Standards - Effective and Not Yet Effective | Newly Issued Accounting Standards - Effective In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-08 (“ASU 2021-08”), Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers to improve the accounting for acquired revenue contracts with customers in a business combination to address recognition of an acquired contract liability and payment terms and their effect on subsequent revenue recognized by the acquirer. ASU 2021-08 was effective for Ciena beginning in the first quarter of fiscal 2024 without any material impact on its consolidated financial position, results of operations and related disclosures. Newly Issued Accounting Standards - Not Yet Effective In November 2023, the FASB issued ASU No. 2023-07 (“ASU 2023-07”), Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 on a retrospective basis. Early adoption is permitted. Ciena is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU No. 2023-09 (“ASU 2023-09”), Income Taxes (Topic 740): Improvement to Income Tax Disclosures to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024; however, early adoption is permitted. ASU 2023-09 allows for adoption using either a prospective or retrospective method. Ciena is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures. In March 2024, the SEC adopted final rules under SEC Release No. 33-11275, The Enhancement and Standardization of Climate Related Disclosures for Investors , which will require registrants to provide certain climate-related information in their registration statements and annual reports. The rules will require information about a registrant's climate-related risks that are reasonably likely to have a material impact on its business, results of operations, or financial condition. The required information about climate-related risks will also include disclosure of a registrant's greenhouse gas emissions. In addition, the rules will require registrants to present certain climate-related financial metrics in their audited financial statements. Disclosures will be required prospectively, with information for prior periods required only to the extent it was previously disclosed in an SEC filing. Ciena is currently evaluating the impact of these final rules on its consolidated financial statements and related disclosures. On April 12, 2024, the final rules were indefinitely delayed pending the completion of judicial review in consolidated proceedings in the U.S. Court of Appeals, Eighth Circuit. |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Jul. 27, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The tables below set forth Ciena’s disaggregated revenue for the periods indicated (in thousands): Quarter Ended July 27, 2024 Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services Total Product lines: Optical Networking $ 606,845 $ — $ — $ — $ 606,845 Routing and Switching 92,692 — — — 92,692 Platform Software and Services — 83,212 — — 83,212 Blue Planet Automation Software and Services — — 25,791 — 25,791 Maintenance Support and Training — — — 74,344 74,344 Installation and Deployment — — — 46,484 46,484 Consulting and Network Design — — — 12,940 12,940 Total revenue by product line $ 699,537 $ 83,212 $ 25,791 $ 133,768 $ 942,308 Timing of revenue recognition: Products and services at a point in time $ 699,537 $ 18,766 $ 11,614 $ 9,833 $ 739,750 Services transferred over time — 64,446 14,177 123,935 202,558 Total revenue by timing of revenue recognition $ 699,537 $ 83,212 $ 25,791 $ 133,768 $ 942,308 Quarter Ended July 29, 2023 Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services Total Product lines: Optical Networking $ 718,997 $ — $ — $ — $ 718,997 Routing and Switching 127,563 — — — 127,563 Platform Software and Services — 78,880 — — 78,880 Blue Planet Automation Software and Services — — 13,167 — 13,167 Maintenance Support and Training — — — 72,887 72,887 Installation and Deployment — — — 46,840 46,840 Consulting and Network Design — — — 9,552 9,552 Total revenue by product line $ 846,560 $ 78,880 $ 13,167 $ 129,279 $ 1,067,886 Timing of revenue recognition: Products and services at a point in time $ 846,560 $ 15,980 $ 2,832 $ 11,886 $ 877,258 Services transferred over time — 62,900 10,335 117,393 190,628 Total revenue by timing of revenue recognition $ 846,560 $ 78,880 $ 13,167 $ 129,279 $ 1,067,886 Nine Months Ended July 27, 2024 Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services Total Product lines: Optical Networking $ 1,862,917 $ — $ — $ — $ 1,862,917 Routing and Switching 320,113 — — — 320,113 Platform Software and Services — 258,402 — — 258,402 Blue Planet Automation Software and Services — — 54,167 — 54,167 Maintenance Support and Training — — — 225,869 225,869 Installation and Deployment — — — 132,993 132,993 Consulting and Network Design — — — 36,382 36,382 Total revenue by product line $ 2,183,030 $ 258,402 $ 54,167 $ 395,244 $ 2,890,843 Timing of revenue recognition: Products and services at a point in time $ 2,183,030 $ 69,149 $ 15,530 $ 29,904 $ 2,297,613 Services transferred over time — 189,253 38,637 365,340 593,230 Total revenue by timing of revenue recognition $ 2,183,030 $ 258,402 $ 54,167 $ 395,244 $ 2,890,843 Nine months ended July 29, 2023 Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services Total Product lines: Optical Networking $ 2,239,180 $ — $ — $ — $ 2,239,180 Routing and Switching 377,378 — — — 377,378 Platform Software and Services — 221,768 — — 221,768 Blue Planet Automation Software and Services — — 49,139 — 49,139 Maintenance Support and Training — — — 213,938 213,938 Installation and Deployment — — — 120,901 120,901 Consulting and Network Design — — — 34,758 34,758 Total revenue by product line $ 2,616,558 $ 221,768 $ 49,139 $ 369,597 $ 3,257,062 Timing of revenue recognition: Products and services at a point in time $ 2,616,558 $ 48,290 $ 14,143 $ 36,553 $ 2,715,544 Services transferred over time — 173,478 34,996 333,044 541,518 Total revenue by timing of revenue recognition $ 2,616,558 $ 221,768 $ 49,139 $ 369,597 $ 3,257,062 For the periods indicated, Ciena’s geographic distribution of revenue was as follows (in thousands): Quarter Ended Nine Months Ended July 27, July 29, July 27, July 29, 2024 2023 2024 2023 Geographic distribution: Americas $ 718,605 $ 749,479 $ 2,099,680 $ 2,308,934 EMEA 135,009 152,834 498,212 479,053 APAC 88,694 165,573 292,951 469,075 Total revenue by geographic distribution $ 942,308 $ 1,067,886 $ 2,890,843 $ 3,257,062 For the periods indicated, the only customers that accounted for at least 10% of Ciena’s revenue were as follows (in thousands): Quarter Ended Nine Months Ended July 27, July 29, July 27, July 29, 2024 2023 2024 2023 Cloud Provider $ 137,184 $ 124,897 $ 331,631 $ 369,678 AT&T 113,082 n/a 324,787 357,382 Total $ 250,266 $ 124,897 $ 656,418 $ 727,060 _____________________________________ n/a Denotes revenue representing less than 10% of total revenue for the period |
Schedule of Contract Balances | The following table provides information about receivables, contract assets and contract liabilities (deferred revenue) from contracts with customers as of the dates indicated (in thousands): Balance at July 27, 2024 Balance at October 28, 2023 Accounts receivable, net $ 899,877 $ 1,003,876 Contract assets for unbilled accounts receivable, net $ 142,769 $ 150,312 Deferred revenue $ 257,085 $ 228,460 As of the dates indicated, deferred revenue is comprised of the following (in thousands): July 27, October 28, Products $ 20,081 $ 28,353 Services 237,004 200,107 Total deferred revenue 257,085 228,460 Less current portion (179,457) (154,419) Long-term deferred revenue $ 77,628 $ 74,041 |
SIGNIFICANT ASSET IMPAIRMENT _2
SIGNIFICANT ASSET IMPAIRMENT AND RESTRUCTURING COSTS (Tables) | 9 Months Ended |
Jul. 27, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Activity and Balance of the Restructuring Liability Accounts | The following table sets forth the restructuring activity and balance of the restructuring liability accounts, which are included in accrued liabilities and other short-term obligations on the Condensed Consolidated Balance Sheets, for the nine months ended July 27, 2024 (in thousands): Workforce Other restructuring activities Total Balance at October 28, 2023 $ 1,913 $ — $ 1,913 Charges 13,708 (1) 8,279 (2) 21,987 Cash payments (14,379) (8,279) (22,658) Balance at July 27, 2024 $ 1,242 $ — $ 1,242 Current restructuring liabilities $ 1,242 $ — $ 1,242 (1) Reflects a global workforce reduction of approximately 390 employees during the nine months ended July 27, 2024 as part of a business optimization strategy to improve gross margin, constrain operating expense and redesign certain business processes. (2) Primarily represents costs related to restructured real estate facilities and the redesign of certain business processes associated with Ciena’s supply chain and distribution structure reorganization. The following table sets forth the restructuring activity and balance of the restructuring liability accounts, which are included in accrued liabilities and other short-term obligations on the Condensed Consolidated Balance Sheets for the nine months ended July 29, 2023 (in thousands): Workforce Other restructuring activities Total Balance at October 29, 2022 $ 1,215 $ 4,620 $ 5,835 Charges 4,509 (1) 12,116 (2) 16,625 Cash payments (4,920) (16,736) (21,656) Balance at July 29, 2023 $ 804 $ — $ 804 Current restructuring liabilities $ 804 $ — $ 804 (1) Reflects employee costs associated with workforce reductions during the nine months ended July 29, 2023 as part of a business optimization strategy to improve gross margin, constrain operating expense, and redesign certain business processes. (2) Primarily represents costs related to restructured real estate facilities and the redesign of certain business processes associated with Ciena’s supply chain and distribution structure reorganization. |
INTEREST AND OTHER INCOME, NET
INTEREST AND OTHER INCOME, NET (Tables) | 9 Months Ended |
Jul. 27, 2024 | |
Other Income and Expenses [Abstract] | |
Schedule of Interest and Other Income, Net | The components of interest and other income, net, are as follows for the periods indicated (in thousands): Quarter Ended Nine Months Ended July 27, July 29, July 27, July 29, 2024 2023 2024 2023 Interest income $ 15,876 $ 12,835 $ 46,309 $ 30,365 Gains (losses) on non-hedge designated foreign currency forward contracts 519 1,679 2,517 (2,885) Foreign currency exchange losses (1,611) (4,031) (11,215) (2,927) Gain (loss) on equity investments, net — (87) — 26,368 Other (771) (209) (1,151) (210) Interest and other income, net $ 14,013 $ 10,187 $ 36,460 $ 50,711 |
CASH EQUIVALENT, SHORT-TERM A_2
CASH EQUIVALENT, SHORT-TERM AND LONG-TERM INVESTMENTS (Tables) | 9 Months Ended |
Jul. 27, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-Sale Securities Reconciliation | As of the dates indicated, investments classified as available-for-sale are comprised of the following (in thousands): July 27, 2024 Amortized Cost Gross Unrealized Gross Unrealized Estimated Fair U.S. government obligations $ 260,879 $ 250 $ (119) $ 261,010 Corporate debt securities 57,791 64 (19) 57,836 Time deposits 96,127 7 — 96,134 $ 414,797 $ 321 $ (138) $ 414,980 Included in cash equivalents $ 85,337 $ — $ — $ 85,337 Included in short-term investments 217,761 158 (109) 217,810 Included in long-term investments 111,699 163 (29) 111,833 $ 414,797 $ 321 $ (138) $ 414,980 October 28, 2023 Amortized Cost Gross Unrealized Gross Unrealized Estimated Fair U.S. government obligations $ 170,260 $ 28 $ (379) $ 169,909 Corporate debt securities 59,683 1 (115) 59,569 Time deposits 138,830 4 (5) 138,829 $ 368,773 $ 33 $ (499) $ 368,307 Included in cash equivalents $ 129,276 $ — $ — $ 129,276 Included in short-term investments 105,042 4 (293) 104,753 Included in long-term investments 134,455 29 (206) 134,278 $ 368,773 $ 33 $ (499) $ 368,307 |
Schedule of Legal Maturities of Debt Investments | The following table summarizes the final legal maturities of debt investments as of July 27, 2024 (in thousands): Amortized Estimated Less than one year $ 303,098 $ 303,147 Due in 1-2 years 111,699 111,833 $ 414,797 $ 414,980 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Jul. 27, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of the Fair Value of Assets and Liabilities Recorded on a Recurring Basis | As of the dates indicated, the following tables summarize the assets and liabilities that are recorded at fair value on a recurring basis (in thousands): July 27, 2024 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 427,818 $ — $ — $ 427,818 Bond mutual fund 160,513 — — 160,513 Time deposits 96,134 — — 96,134 Deferred compensation plan assets 15,590 — — 15,590 U.S. government obligations — 261,010 — 261,010 Corporate debt securities — 57,836 — 57,836 Foreign currency forward contracts — 1,232 — 1,232 Interest rate swaps — 12,316 — 12,316 Total assets measured at fair value $ 700,055 $ 332,394 $ — $ 1,032,449 Liabilities: Foreign currency forward contracts $ — $ 7,271 $ — $ 7,271 Total liabilities measured at fair value $ — $ 7,271 $ — $ 7,271 October 28, 2023 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 661,101 $ — $ — $ 661,101 Bond mutual fund 104,171 — — 104,171 Time deposits 138,829 — — 138,829 Deferred compensation plan assets 11,456 — — 11,456 U.S. government obligations — 169,909 — 169,909 Corporate debt securities — 59,569 — 59,569 Foreign currency forward contracts — 1,119 — 1,119 Interest rate swaps — 24,953 — 24,953 Total assets measured at fair value $ 915,557 $ 255,550 $ — $ 1,171,107 Liabilities: Foreign currency forward contracts $ — $ 14,509 $ — $ 14,509 Total liabilities measured at fair value $ — $ 14,509 $ — $ 14,509 |
Schedule of Assets and Liabilities as Presented on Ciena's Condensed Consolidated Balance Sheets | As of the dates indicated, the assets and liabilities above are presented on Ciena’s Condensed Consolidated Balance Sheets as follows (in thousands): July 27, 2024 Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 669,655 $ 4,013 $ — $ 673,668 Short-term investments 14,810 203,000 — 217,810 Prepaid expenses and other — 1,232 — 1,232 Long-term investments — 111,833 — 111,833 Other long-term assets 15,590 12,316 — 27,906 Total assets measured at fair value $ 700,055 $ 332,394 $ — $ 1,032,449 Liabilities: Accrued liabilities and other short-term obligations $ — $ 7,271 $ — $ 7,271 Total liabilities measured at fair value $ — $ 7,271 $ — $ 7,271 October 28, 2023 Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 891,788 $ 2,760 $ — $ 894,548 Short-term investments 12,313 92,440 — 104,753 Prepaid expenses and other — 1,119 — 1,119 Long-term investments — 134,278 — 134,278 Other long-term assets 11,456 24,953 — 36,409 Total assets measured at fair value $ 915,557 $ 255,550 $ — $ 1,171,107 Liabilities: Accrued liabilities and other short-term obligations $ — $ 14,509 $ — $ 14,509 Total liabilities measured at fair value $ — $ 14,509 $ — $ 14,509 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Jul. 27, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | As of the dates indicated, inventories are comprised of the following (in thousands): July 27, October 28, Raw materials $ 612,768 $ 664,797 Work-in-process 44,364 55,242 Finished goods 313,977 314,168 Deferred cost of goods sold 35,983 66,634 Gross inventories 1,007,092 1,100,841 Reserve for inventory excess and obsolescence (69,693) (50,003) Inventories, net $ 937,399 $ 1,050,838 |
PREPAID EXPENSES AND OTHER (Tab
PREPAID EXPENSES AND OTHER (Tables) | 9 Months Ended |
Jul. 27, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other | As of the dates indicated, prepaid expenses and other are comprised of the following (in thousands): July 27, October 28, Cash advances to contract manufacturers (1) $ 182,886 $ — Contract assets for unbilled accounts receivable, net 142,769 150,312 Prepaid VAT and other taxes 112,997 96,724 Prepaid expenses 53,950 58,954 Product demonstration equipment, net (2) 43,854 40,682 Other non-trade receivables 42,482 33,408 Capitalized contract acquisition costs 18,033 23,326 Deferred deployment expense 1,805 1,170 Foreign currency forward contracts 1,232 1,118 $ 600,008 $ 405,694 (1) Amount reflects refundable cash advances to a third-party contract manufacturer for potential future inventory purchases and transition and logistic costs for future asset relocation. Ciena has initiated a strategic reengineering and realignment of its supply chain, including changes to its systems, processes, partners and people, and this cash advance assists in facilitating such activities. (2) Depreciation of product demonstration equipment was $6.1 million during the first nine months of fiscal 2024 and $5.9 million during the first nine months of fiscal 2023. |
OTHER BALANCE SHEET DETAILS (Ta
OTHER BALANCE SHEET DETAILS (Tables) | 9 Months Ended |
Jul. 27, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Other Long-term Assets | As of the dates indicated, other long-term assets are comprised of the following (in thousands): July 27, October 28, Maintenance spares inventory, net $ 68,100 $ 54,042 Equity investments (1) 21,730 48 Deferred compensation plan assets 15,590 11,456 Forward starting interest rate swaps 12,316 24,953 Capitalized contract acquisition costs 7,423 6,879 Cloud computing arrangements (2) 6,946 8,589 Deferred debt issuance costs, net 1,806 1,956 Restricted cash 164 168 Other 11,438 8,362 $ 145,513 $ 116,453 (1) Increase is due to an equity investment in a privately held technology company d uring fiscal 2024. (2) Amortization of cloud computing arrangements was $3.4 million and $1.9 million during the first nine months of fiscal 2024 and fiscal 2023, respectively. |
Schedule of Accrued Liabilities | As of the dates indicated, accrued liabilities and other short-term obligations are comprised of the following (in thousands): July 27, October 28, Compensation, payroll related tax and benefits $ 120,889 $ 159,530 Warranty 49,933 57,089 Vacation 31,419 29,503 Interest payable 8,806 4,514 Foreign currency forward contracts 7,271 14,509 Income taxes payable 6,537 16,341 Finance lease liabilities 4,306 3,953 Other 118,077 145,980 $ 347,238 $ 431,419 |
Schedule of Accrued Warranties | The following table summarizes the activity in Ciena’s accrued warranty for the periods indicated (in thousands): Beginning Balance Current Period Provisions Settlements Ending Balance Nine Months Ended July 29, 2023 $ 45,503 18,860 (14,859) $ 49,504 Nine Months Ended July 27, 2024 $ 57,089 14,708 (21,864) $ 49,933 |
Schedule of Contract Balances | The following table provides information about receivables, contract assets and contract liabilities (deferred revenue) from contracts with customers as of the dates indicated (in thousands): Balance at July 27, 2024 Balance at October 28, 2023 Accounts receivable, net $ 899,877 $ 1,003,876 Contract assets for unbilled accounts receivable, net $ 142,769 $ 150,312 Deferred revenue $ 257,085 $ 228,460 As of the dates indicated, deferred revenue is comprised of the following (in thousands): July 27, October 28, Products $ 20,081 $ 28,353 Services 237,004 200,107 Total deferred revenue 257,085 228,460 Less current portion (179,457) (154,419) Long-term deferred revenue $ 77,628 $ 74,041 |
SHORT-TERM AND LONG-TERM DEBT (
SHORT-TERM AND LONG-TERM DEBT (Tables) | 9 Months Ended |
Jul. 27, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Convertible Notes | The net carrying value of the 2030 New Term Loan was comprised of the following as of the date indicated (in thousands): July 27, 2024 October 28, 2023 Principal Balance Unamortized Discount Deferred Debt Issuance Costs Net Carrying Value Net Carrying Value 2030 New Term Loan $ 1,164,150 $ (4,560) $ (5,830) $ 1,153,760 $ 1,159,371 The net carrying value of the 2030 Notes was comprised of the following as of the dates indicated (in thousands): July 27, 2024 October 28, 2023 Principal Balance Deferred Debt Issuance Costs Net Carrying Value Net Carrying Value 2030 Notes $ 400,000 $ (3,745) $ 396,255 $ 395,735 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Jul. 27, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | The following table summarizes the changes in accumulated balances of other comprehensive income (“AOCI”), net of tax, for the nine months ended July 27, 2024 (in thousands): Unrealized Gain (Loss) on Available-for-sale Securities Foreign Currency Forward Contracts Interest Rate Swaps Cumulative Total Balance at October 28, 2023 $ (372) $ (8,156) $ 18,962 $ (48,201) $ (37,767) Other comprehensive gain (loss) before reclassifications 493 (112) 1,728 2,961 5,070 Amounts reclassified from AOCI — 3,848 (11,343) — (7,495) Balance at July 27, 2024 $ 121 $ (4,420) $ 9,347 $ (45,240) $ (40,192) The following table summarizes the changes in AOCI, net of tax, for the nine months ended July 29, 2023 (in thousands): Unrealized Gain (Loss) on Available-for-sale Securities Foreign Currency Forward Contracts Interest Rate Swaps Cumulative Total Balance at October 29, 2022 $ (2,965) $ (10,197) $ 9,397 $ (42,880) $ (46,645) Other comprehensive gain before reclassifications 2,075 17,070 11,763 17,981 48,889 Amounts reclassified from AOCI — (7,756) (6,266) — (14,022) Balance at July 29, 2023 $ (890) $ (883) $ 14,894 $ (24,899) $ (11,778) |
EARNINGS_PER SHARE CALCULATION
EARNINGS PER SHARE CALCULATION (Tables) | 9 Months Ended |
Jul. 27, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Numerator and Denominator of Basic and Diluted Earnings Per Share | The following table presents the calculation of Basic and Diluted EPS for the periods indicated (in thousands, except per share amounts): Quarter Ended Nine Months Ended July 27, July 29, July 27, July 29, 2024 2023 2024 2023 Net income $ 14,230 $ 29,733 $ 46,928 $ 163,628 Basic weighted average shares outstanding 144,394 149,690 144,876 149,472 Effect of dilutive potential common shares 967 287 919 395 Diluted weighted average shares 145,361 149,977 145,795 149,867 Basic EPS $ 0.10 $ 0.20 $ 0.32 $ 1.09 Diluted EPS $ 0.10 $ 0.20 $ 0.32 $ 1.09 Antidilutive employee share-based awards, excluded 690 3,383 1,286 2,567 |
SHARE-BASED COMPENSATION EXPE_2
SHARE-BASED COMPENSATION EXPENSE (Tables) | 9 Months Ended |
Jul. 27, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
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 July 27, July 29, July 27, July 29, 2024 2023 2024 2023 Products $ 1,660 $ 1,118 $ 4,738 $ 3,324 Services 3,122 2,687 9,486 7,643 Share-based compensation expense included in cost of goods sold 4,782 3,805 14,224 10,967 Research and development 13,118 10,954 40,064 30,919 Selling and marketing 10,315 8,770 31,786 25,949 General and administrative 9,257 9,377 29,211 27,313 Share-based compensation expense included in operating expense 32,690 29,101 101,061 84,181 Share-based compensation expense capitalized in inventory, net (114) 127 148 257 Total share-based compensation expense $ 37,358 $ 33,033 $ 115,433 $ 95,405 |
SEGMENTS AND ENTITY-WIDE DISC_2
SEGMENTS AND ENTITY-WIDE DISCLOSURES (Tables) | 9 Months Ended |
Jul. 27, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Reconciliation of Assets From Segment to Consolidated | As of July 27, 2024, finite-lived intangible assets, goodwill, and maintenance spares are assigned to asset groups within the following segments (in thousands): July 27, 2024 Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services Total Other intangible assets, net $ 166,067 — 8,907 — $ 174,974 Goodwill $ 199,551 156,191 89,049 — $ 444,791 Maintenance spares, net $ — — — 68,100 $ 68,100 |
Schedule of Segment Profit (Loss) and the Reconciliation to Consolidated Net Income (Loss) | The table below sets forth Ciena’s segment profit (loss) and the reconciliation to net income for the periods indicated (in thousands): Quarter Ended Nine Months Ended July 27, July 29, July 27, July 29, 2024 2023 2024 2023 Segment profit (loss): Networking Platforms $ 106,870 $ 171,380 $ 387,211 $ 588,281 Platform Software and Services 53,131 49,691 165,171 136,028 Blue Planet Automation Software and Services 4,705 (12,072) (10,127) (30,044) Global Services 50,351 50,550 145,776 137,190 Total segment profit 215,057 259,549 688,031 831,455 Less: Non-performance operating expenses Selling and marketing 121,520 118,266 373,749 367,156 General and administrative 58,248 49,349 162,504 151,184 Significant asset impairments and restructuring costs 1,361 4,174 21,987 16,625 Amortization of intangible assets 7,185 9,487 22,384 26,773 Acquisition and integration costs — 59 — 3,474 Add: Other non-performance financial items Interest and other income, net 14,013 10,187 36,460 50,711 Interest expense (24,401) (24,060) (72,038) (63,819) Less: Provision for income taxes 2,125 34,608 24,901 89,507 Net income $ 14,230 $ 29,733 $ 46,928 $ 163,628 |
Schedule of Ciena's Geographic Distribution of Revenue and Long-Lived Assets | For the periods indicated, Ciena’s geographic distribution of equipment, building, furniture and fixtures, net, and operating ROU assets was as follows (in thousands): July 27, October 28, Canada $ 248,024 $ 229,707 United States 46,781 46,933 Other International 33,073 38,647 Total $ 327,878 $ 315,287 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 27, 2024 | Jul. 29, 2023 | Jul. 27, 2024 | Jul. 29, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 942,308 | $ 1,067,886 | $ 2,890,843 | $ 3,257,062 |
Products and services at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 739,750 | 877,258 | 2,297,613 | 2,715,544 |
Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 202,558 | 190,628 | 593,230 | 541,518 |
Networking Platforms | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 699,537 | 846,560 | 2,183,030 | 2,616,558 |
Networking Platforms | Products and services at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 699,537 | 846,560 | 2,183,030 | 2,616,558 |
Networking Platforms | Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Platform Software and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 83,212 | 78,880 | 258,402 | 221,768 |
Platform Software and Services | Products and services at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 18,766 | 15,980 | 69,149 | 48,290 |
Platform Software and Services | Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 64,446 | 62,900 | 189,253 | 173,478 |
Blue Planet Automation Software and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 25,791 | 13,167 | 54,167 | 49,139 |
Blue Planet Automation Software and Services | Products and services at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 11,614 | 2,832 | 15,530 | 14,143 |
Blue Planet Automation Software and Services | Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 14,177 | 10,335 | 38,637 | 34,996 |
Global Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 133,768 | 129,279 | 395,244 | 369,597 |
Global Services | Products and services at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 9,833 | 11,886 | 29,904 | 36,553 |
Global Services | Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 123,935 | 117,393 | 365,340 | 333,044 |
Optical Networking | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 606,845 | 718,997 | 1,862,917 | 2,239,180 |
Optical Networking | Networking Platforms | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 606,845 | 718,997 | 1,862,917 | 2,239,180 |
Optical Networking | Platform Software and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Optical Networking | Blue Planet Automation Software and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Optical Networking | Global Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Routing and Switching | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 92,692 | 127,563 | 320,113 | 377,378 |
Routing and Switching | Networking Platforms | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 92,692 | 127,563 | 320,113 | 377,378 |
Routing and Switching | Platform Software and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Routing and Switching | Blue Planet Automation Software and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Routing and Switching | Global Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Platform Software and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 83,212 | 78,880 | 258,402 | 221,768 |
Platform Software and Services | Networking Platforms | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Platform Software and Services | Platform Software and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 83,212 | 78,880 | 258,402 | 221,768 |
Platform Software and Services | Blue Planet Automation Software and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Platform Software and Services | Global Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Blue Planet Automation Software and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 25,791 | 13,167 | 54,167 | 49,139 |
Blue Planet Automation Software and Services | Networking Platforms | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Blue Planet Automation Software and Services | Platform Software and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Blue Planet Automation Software and Services | Blue Planet Automation Software and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 25,791 | 13,167 | 54,167 | 49,139 |
Blue Planet Automation Software and Services | Global Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Maintenance Support and Training | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 74,344 | 72,887 | 225,869 | 213,938 |
Maintenance Support and Training | Networking Platforms | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Maintenance Support and Training | Platform Software and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Maintenance Support and Training | Blue Planet Automation Software and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Maintenance Support and Training | Global Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 74,344 | 72,887 | 225,869 | 213,938 |
Installation and Deployment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 46,484 | 46,840 | 132,993 | 120,901 |
Installation and Deployment | Networking Platforms | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Installation and Deployment | Platform Software and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Installation and Deployment | Blue Planet Automation Software and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Installation and Deployment | Global Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 46,484 | 46,840 | 132,993 | 120,901 |
Consulting and Network Design | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 12,940 | 9,552 | 36,382 | 34,758 |
Consulting and Network Design | Networking Platforms | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Consulting and Network Design | Platform Software and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Consulting and Network Design | Blue Planet Automation Software and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Consulting and Network Design | Global Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 12,940 | $ 9,552 | $ 36,382 | $ 34,758 |
REVENUE - Geographical Distribu
REVENUE - Geographical Distribution of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 27, 2024 | Jul. 29, 2023 | Jul. 27, 2024 | Jul. 29, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 942,308 | $ 1,067,886 | $ 2,890,843 | $ 3,257,062 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 718,605 | 749,479 | 2,099,680 | 2,308,934 |
EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 135,009 | 152,834 | 498,212 | 479,053 |
APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 88,694 | $ 165,573 | $ 292,951 | $ 469,075 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 27, 2024 | Jul. 29, 2023 | Jul. 27, 2024 | Jul. 29, 2023 | Oct. 28, 2023 | |
Disaggregation of Revenue [Line Items] | |||||
Total revenue | $ 942,308 | $ 1,067,886 | $ 2,890,843 | $ 3,257,062 | |
Revenue recognized that was previously deferred | 130,500 | 119,800 | |||
Capitalized contract acquisition costs | 25,500 | 25,500 | $ 30,200 | ||
Amortization of capitalized contract acquisition costs | 22,900 | 26,000 | |||
Remaining performance obligation | $ 1,600,000 | $ 1,600,000 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-28 | |||||
Disaggregation of Revenue [Line Items] | |||||
Percentage of remaining performance obligation | 78% | 78% | |||
Period of remaining performance obligation | 12 months | 12 months | |||
United States | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue | $ 676,000 | $ 685,800 | $ 2,000,000 | $ 2,100,000 |
REVENUE - Revenue by Major Cust
REVENUE - Revenue by Major Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 27, 2024 | Jul. 29, 2023 | Jul. 27, 2024 | Jul. 29, 2023 | |
Revenue, Major Customer [Line Items] | ||||
Total revenue | $ 942,308 | $ 1,067,886 | $ 2,890,843 | $ 3,257,062 |
Cloud Provider | Revenue | Customer Concentration Risk | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenue | 137,184 | 124,897 | 331,631 | 369,678 |
AT&T | Revenue | Customer Concentration Risk | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenue | 113,082 | 324,787 | 357,382 | |
Total | Revenue | Customer Concentration Risk | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenue | $ 250,266 | $ 124,897 | $ 656,418 | $ 727,060 |
REVENUE - Contract Balances (De
REVENUE - Contract Balances (Details) - USD ($) $ in Thousands | Jul. 27, 2024 | Oct. 28, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 899,877 | $ 1,003,876 |
Contract assets for unbilled accounts receivable, net | 142,769 | 150,312 |
Deferred revenue | $ 257,085 | $ 228,460 |
SIGNIFICANT ASSET IMPAIRMENT _3
SIGNIFICANT ASSET IMPAIRMENT AND RESTRUCTURING COSTS - Schedule of Restructuring Liabilities (Details) $ in Thousands | 9 Months Ended | |
Jul. 27, 2024 USD ($) employee | Jul. 29, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | $ 1,913 | $ 5,835 |
Charges | 21,987 | 16,625 |
Cash payments | (22,658) | (21,656) |
Balance at end of period | 1,242 | 804 |
Current restructuring liabilities | 1,242 | 804 |
Workforce reduction | ||
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | 1,913 | 1,215 |
Charges | 13,708 | 4,509 |
Cash payments | (14,379) | (4,920) |
Balance at end of period | 1,242 | 804 |
Current restructuring liabilities | $ 1,242 | 804 |
Number of employee reduction | employee | 390 | |
Other restructuring activities | ||
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | $ 0 | 4,620 |
Charges | 8,279 | 12,116 |
Cash payments | (8,279) | (16,736) |
Balance at end of period | 0 | 0 |
Current restructuring liabilities | $ 0 | $ 0 |
INTEREST AND OTHER INCOME, NE_2
INTEREST AND OTHER INCOME, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 27, 2024 | Jul. 29, 2023 | Jan. 28, 2023 | Jul. 27, 2024 | Jul. 29, 2023 | |
Other Income and Expenses [Abstract] | |||||
Interest income | $ 15,876 | $ 12,835 | $ 46,309 | $ 30,365 | |
Gains (losses) on non-hedge designated foreign currency forward contracts | 519 | 1,679 | 2,517 | (2,885) | |
Foreign currency exchange losses | (1,611) | (4,031) | (11,215) | (2,927) | |
Gain (loss) on equity investments, net | 0 | (87) | $ 26,500 | 0 | 26,368 |
Other | (771) | (209) | (1,151) | (210) | |
Interest and other income, net | $ 14,013 | $ 10,187 | $ 36,460 | $ 50,711 |
INTEREST AND OTHER INCOME, NE_3
INTEREST AND OTHER INCOME, NET - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 27, 2024 | Jul. 29, 2023 | Jan. 28, 2023 | Jul. 27, 2024 | Jul. 29, 2023 | |
Other Income and Expenses [Abstract] | |||||
Gain (loss) on equity investments, net | $ 0 | $ (87) | $ 26,500 | $ 0 | $ 26,368 |
Foreign currency exchange losses | (1,611) | (4,031) | (11,215) | (2,927) | |
Gains (losses) on non-hedge designated foreign currency forward contracts | $ 519 | $ 1,679 | $ 2,517 | $ (2,885) |
CASH EQUIVALENT, SHORT-TERM A_3
CASH EQUIVALENT, SHORT-TERM AND LONG-TERM INVESTMENTS - Schedule of Short-term and Long-term Investments (Details) - USD ($) $ in Thousands | Jul. 27, 2024 | Oct. 28, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 414,797 | $ 368,773 |
Gross Unrealized Gains | 321 | 33 |
Gross Unrealized Losses | (138) | (499) |
Estimated Fair Value | 414,980 | 368,307 |
Cash equivalents | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 85,337 | 129,276 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 85,337 | 129,276 |
Short-term investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 217,761 | 105,042 |
Gross Unrealized Gains | 158 | 4 |
Gross Unrealized Losses | (109) | (293) |
Estimated Fair Value | 217,810 | 104,753 |
Included in long-term investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 111,699 | 134,455 |
Gross Unrealized Gains | 163 | 29 |
Gross Unrealized Losses | (29) | (206) |
Estimated Fair Value | 111,833 | 134,278 |
U.S. government obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 260,879 | 170,260 |
Gross Unrealized Gains | 250 | 28 |
Gross Unrealized Losses | (119) | (379) |
Estimated Fair Value | 261,010 | 169,909 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 57,791 | 59,683 |
Gross Unrealized Gains | 64 | 1 |
Gross Unrealized Losses | (19) | (115) |
Estimated Fair Value | 57,836 | 59,569 |
Time deposits | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 96,127 | 138,830 |
Gross Unrealized Gains | 7 | 4 |
Gross Unrealized Losses | 0 | (5) |
Estimated Fair Value | $ 96,134 | $ 138,829 |
CASH EQUIVALENT, SHORT-TERM A_4
CASH EQUIVALENT, SHORT-TERM AND LONG-TERM INVESTMENTS - Legal Maturities of Debt Investments (Details) - USD ($) $ in Thousands | Jul. 27, 2024 | Oct. 28, 2023 |
Amortized Cost | ||
Less than one year | $ 303,098 | |
Due in 1-2 years | 111,699 | |
Amortized Cost | 414,797 | $ 368,773 |
Estimated Fair Value | ||
Less than one year | 303,147 | |
Due in 1-2 years | 111,833 | |
Estimated Fair Value | $ 414,980 | $ 368,307 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Value Measurements (Details) - USD ($) $ in Thousands | Jul. 27, 2024 | Oct. 28, 2023 |
Assets: | ||
Debt securities available for sale | $ 414,980 | $ 368,307 |
Corporate debt securities | ||
Assets: | ||
Debt securities available for sale | 57,836 | 59,569 |
Fair value, Measurements, Recurring | ||
Assets: | ||
Deferred compensation plan assets | 15,590 | 11,456 |
Total assets measured at fair value | 1,032,449 | 1,171,107 |
Liabilities: | ||
Total liabilities measured at fair value | 7,271 | 14,509 |
Fair value, Measurements, Recurring | Foreign Currency Forward Contracts | ||
Assets: | ||
Derivative assets | 1,232 | 1,119 |
Liabilities: | ||
Derivative liability | 7,271 | 14,509 |
Fair value, Measurements, Recurring | Interest rate swaps | ||
Assets: | ||
Derivative assets | 12,316 | 24,953 |
Fair value, Measurements, Recurring | Bond mutual fund | ||
Assets: | ||
Debt securities available for sale | 160,513 | 104,171 |
Fair value, Measurements, Recurring | U.S. government obligations | ||
Assets: | ||
Debt securities available for sale | 261,010 | 169,909 |
Fair value, Measurements, Recurring | Corporate debt securities | ||
Assets: | ||
Debt securities available for sale | 57,836 | 59,569 |
Level 1 | Fair value, Measurements, Recurring | ||
Assets: | ||
Deferred compensation plan assets | 15,590 | 11,456 |
Total assets measured at fair value | 700,055 | 915,557 |
Liabilities: | ||
Total liabilities measured at fair value | 0 | 0 |
Level 1 | Fair value, Measurements, Recurring | Foreign Currency Forward Contracts | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liability | 0 | 0 |
Level 1 | Fair value, Measurements, Recurring | Interest rate swaps | ||
Assets: | ||
Derivative assets | 0 | 0 |
Level 1 | Fair value, Measurements, Recurring | Bond mutual fund | ||
Assets: | ||
Debt securities available for sale | 160,513 | 104,171 |
Level 1 | Fair value, Measurements, Recurring | U.S. government obligations | ||
Assets: | ||
Debt securities available for sale | 0 | 0 |
Level 1 | Fair value, Measurements, Recurring | Corporate debt securities | ||
Assets: | ||
Debt securities available for sale | 0 | 0 |
Level 2 | Fair value, Measurements, Recurring | ||
Assets: | ||
Deferred compensation plan assets | 0 | 0 |
Total assets measured at fair value | 332,394 | 255,550 |
Liabilities: | ||
Total liabilities measured at fair value | 7,271 | 14,509 |
Level 2 | Fair value, Measurements, Recurring | Foreign Currency Forward Contracts | ||
Assets: | ||
Derivative assets | 1,232 | 1,119 |
Liabilities: | ||
Derivative liability | 7,271 | 14,509 |
Level 2 | Fair value, Measurements, Recurring | Interest rate swaps | ||
Assets: | ||
Derivative assets | 12,316 | 24,953 |
Level 2 | Fair value, Measurements, Recurring | Bond mutual fund | ||
Assets: | ||
Debt securities available for sale | 0 | 0 |
Level 2 | Fair value, Measurements, Recurring | U.S. government obligations | ||
Assets: | ||
Debt securities available for sale | 261,010 | 169,909 |
Level 2 | Fair value, Measurements, Recurring | Corporate debt securities | ||
Assets: | ||
Debt securities available for sale | 57,836 | 59,569 |
Level 3 | Fair value, Measurements, Recurring | ||
Assets: | ||
Deferred compensation plan assets | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Liabilities: | ||
Total liabilities measured at fair value | 0 | 0 |
Level 3 | Fair value, Measurements, Recurring | Foreign Currency Forward Contracts | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liability | 0 | 0 |
Level 3 | Fair value, Measurements, Recurring | Interest rate swaps | ||
Assets: | ||
Derivative assets | 0 | 0 |
Level 3 | Fair value, Measurements, Recurring | Bond mutual fund | ||
Assets: | ||
Debt securities available for sale | 0 | 0 |
Level 3 | Fair value, Measurements, Recurring | U.S. government obligations | ||
Assets: | ||
Debt securities available for sale | 0 | 0 |
Level 3 | Fair value, Measurements, Recurring | Corporate debt securities | ||
Assets: | ||
Debt securities available for sale | 0 | 0 |
Money market funds | Fair value, Measurements, Recurring | ||
Assets: | ||
Cash equivalents | 427,818 | 661,101 |
Money market funds | Level 1 | Fair value, Measurements, Recurring | ||
Assets: | ||
Cash equivalents | 427,818 | 661,101 |
Money market funds | Level 2 | Fair value, Measurements, Recurring | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Money market funds | Level 3 | Fair value, Measurements, Recurring | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Time deposits | Fair value, Measurements, Recurring | ||
Assets: | ||
Cash equivalents | 96,134 | 138,829 |
Time deposits | Level 1 | Fair value, Measurements, Recurring | ||
Assets: | ||
Cash equivalents | 96,134 | 138,829 |
Time deposits | Level 2 | Fair value, Measurements, Recurring | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Time deposits | Level 3 | Fair value, Measurements, Recurring | ||
Assets: | ||
Cash equivalents | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Conde
FAIR VALUE MEASUREMENTS - Condensed Consolidated Balance Sheet (Details) - Fair value, Measurements, Recurring - USD ($) $ in Thousands | Jul. 27, 2024 | Oct. 28, 2023 |
Assets: | ||
Total assets measured at fair value | $ 1,032,449 | $ 1,171,107 |
Liabilities: | ||
Total liabilities measured at fair value | 7,271 | 14,509 |
Level 1 | ||
Assets: | ||
Total assets measured at fair value | 700,055 | 915,557 |
Liabilities: | ||
Total liabilities measured at fair value | 0 | 0 |
Level 2 | ||
Assets: | ||
Total assets measured at fair value | 332,394 | 255,550 |
Liabilities: | ||
Total liabilities measured at fair value | 7,271 | 14,509 |
Level 3 | ||
Assets: | ||
Total assets measured at fair value | 0 | 0 |
Liabilities: | ||
Total liabilities measured at fair value | 0 | 0 |
Cash equivalents | ||
Assets: | ||
Cash equivalents | 673,668 | 894,548 |
Cash equivalents | Level 1 | ||
Assets: | ||
Cash equivalents | 669,655 | 891,788 |
Cash equivalents | Level 2 | ||
Assets: | ||
Cash equivalents | 4,013 | 2,760 |
Cash equivalents | Level 3 | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Short-term investments | ||
Assets: | ||
Short-term investments | 217,810 | 104,753 |
Short-term investments | Level 1 | ||
Assets: | ||
Short-term investments | 14,810 | 12,313 |
Short-term investments | Level 2 | ||
Assets: | ||
Short-term investments | 203,000 | 92,440 |
Short-term investments | Level 3 | ||
Assets: | ||
Short-term investments | 0 | 0 |
Prepaid expenses and other | ||
Assets: | ||
Other assets | 1,232 | 1,119 |
Prepaid expenses and other | Level 1 | ||
Assets: | ||
Other assets | 0 | 0 |
Prepaid expenses and other | Level 2 | ||
Assets: | ||
Other assets | 1,232 | 1,119 |
Prepaid expenses and other | Level 3 | ||
Assets: | ||
Other assets | 0 | 0 |
Long-term investments | ||
Assets: | ||
Long-term investments | 111,833 | 134,278 |
Long-term investments | Level 1 | ||
Assets: | ||
Long-term investments | 0 | 0 |
Long-term investments | Level 2 | ||
Assets: | ||
Long-term investments | 111,833 | 134,278 |
Long-term investments | Level 3 | ||
Assets: | ||
Long-term investments | 0 | 0 |
Other long-term assets | ||
Assets: | ||
Other assets | 27,906 | 36,409 |
Other long-term assets | Level 1 | ||
Assets: | ||
Other assets | 15,590 | 11,456 |
Other long-term assets | Level 2 | ||
Assets: | ||
Other assets | 12,316 | 24,953 |
Other long-term assets | Level 3 | ||
Assets: | ||
Other assets | 0 | 0 |
Accrued liabilities and other short-term obligations | ||
Liabilities: | ||
Accrued liabilities and other short-term obligations | 7,271 | 14,509 |
Accrued liabilities and other short-term obligations | Level 1 | ||
Liabilities: | ||
Accrued liabilities and other short-term obligations | 0 | 0 |
Accrued liabilities and other short-term obligations | Level 2 | ||
Liabilities: | ||
Accrued liabilities and other short-term obligations | 7,271 | 14,509 |
Accrued liabilities and other short-term obligations | Level 3 | ||
Liabilities: | ||
Accrued liabilities and other short-term obligations | $ 0 | $ 0 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Jul. 27, 2024 | Jul. 29, 2023 | Oct. 28, 2023 | |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 612,768 | $ 664,797 | |
Work-in-process | 44,364 | 55,242 | |
Finished goods | 313,977 | 314,168 | |
Deferred cost of goods sold | 35,983 | 66,634 | |
Gross inventories | 1,007,092 | 1,100,841 | |
Reserve for inventory excess and obsolescence | (69,693) | (50,003) | |
Inventories, net | 937,399 | $ 1,050,838 | |
Provision for inventory excess and obsolescence | $ 35,400 | $ 18,767 |
PREPAID EXPENSES AND OTHER (Det
PREPAID EXPENSES AND OTHER (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Jul. 27, 2024 | Jul. 29, 2023 | Oct. 28, 2023 | |
Capitalized Contract Cost [Line Items] | |||
Cash advances to contract manufacturers | $ 182,886 | $ 0 | |
Prepaid VAT and other taxes | 112,997 | 96,724 | |
Prepaid expenses | 53,950 | 58,954 | |
Product demonstration equipment, net | 43,854 | 40,682 | |
Other non-trade receivables | 42,482 | 33,408 | |
Deferred deployment expense | 1,805 | 1,170 | |
Foreign currency forward contracts | 1,232 | 1,118 | |
Prepaid expenses and other | 600,008 | 405,694 | |
Depreciation of product demonstration equipment | 6,100 | $ 5,900 | |
Contract assets for unbilled accounts receivable, net | |||
Capitalized Contract Cost [Line Items] | |||
Capitalized contract costs | 142,769 | 150,312 | |
Capitalized contract acquisition costs | |||
Capitalized Contract Cost [Line Items] | |||
Capitalized contract costs | $ 18,033 | $ 23,326 |
OTHER BALANCE SHEET DETAILS - O
OTHER BALANCE SHEET DETAILS - Other Long Term Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Jul. 27, 2024 | Jul. 29, 2023 | Oct. 28, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |||
Maintenance spares inventory, net | $ 68,100 | $ 54,042 | |
Equity investments | 21,730 | 48 | |
Deferred compensation plan assets | 15,590 | 11,456 | |
Forward starting interest rate swaps | 12,316 | 24,953 | |
Capitalized contract acquisition costs | 7,423 | 6,879 | |
Cloud computing arrangements | 6,946 | 8,589 | |
Deferred debt issuance costs, net | 1,806 | 1,956 | |
Restricted cash | 164 | 168 | |
Other | 11,438 | 8,362 | |
Total | 145,513 | $ 116,453 | |
Amortization of cloud computing arrangements | $ 3,400 | $ 1,900 | |
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Total | Total |
OTHER BALANCE SHEET DETAILS - A
OTHER BALANCE SHEET DETAILS - Accrued Liabilities and Other Short-term Obligations (Details) - USD ($) $ in Thousands | Jul. 27, 2024 | Oct. 28, 2023 | Jul. 29, 2023 | Oct. 29, 2022 |
Balance Sheet Related Disclosures [Abstract] | ||||
Compensation, payroll related tax and benefits | $ 120,889 | $ 159,530 | ||
Warranty | 49,933 | 57,089 | $ 49,504 | $ 45,503 |
Vacation | 31,419 | 29,503 | ||
Interest payable | 6,537 | 16,341 | ||
Foreign currency forward contracts | 7,271 | 14,509 | ||
Income taxes payable | 8,806 | 4,514 | ||
Finance lease liabilities | 4,306 | 3,953 | ||
Other | 118,077 | 145,980 | ||
Accrued liabilities and other short-term obligations | $ 347,238 | $ 431,419 | ||
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued liabilities and other short-term obligations | Accrued liabilities and other short-term obligations |
OTHER BALANCE SHEET DETAILS -_2
OTHER BALANCE SHEET DETAILS - Accrued Warranty (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 27, 2024 | Jul. 29, 2023 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning Balance | $ 57,089 | $ 45,503 |
Current Period Provisions | 14,708 | 18,860 |
Settlements | (21,864) | (14,859) |
Ending Balance | $ 49,933 | $ 49,504 |
OTHER BALANCE SHEET DETAILS - D
OTHER BALANCE SHEET DETAILS - Deferred Revenue (Details) - USD ($) $ in Thousands | Jul. 27, 2024 | Oct. 28, 2023 |
Disaggregation of Revenue [Line Items] | ||
Total deferred revenue | $ 257,085 | $ 228,460 |
Less current portion | (179,457) | (154,419) |
Long-term deferred revenue | 77,628 | 74,041 |
Products | ||
Disaggregation of Revenue [Line Items] | ||
Total deferred revenue | 20,081 | 28,353 |
Services | ||
Disaggregation of Revenue [Line Items] | ||
Total deferred revenue | $ 237,004 | $ 200,107 |
DERIVATIVE INSTRUMENTS (Details
DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | ||||
Apr. 27, 2024 | Jul. 27, 2024 | Dec. 31, 2023 | Oct. 28, 2023 | Jan. 31, 2023 | Apr. 30, 2022 | |
Unrealized gain (loss) on foreign currency forward contracts, net of tax | Not Designated as Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Derivative asset, notional amount | $ 142.6 | $ 226.3 | ||||
Derivative maturity (in months) | 12 months | |||||
Unrealized gain (loss) on foreign currency forward contracts, net of tax | Cash Flow Hedging | Designated as Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Derivative asset, notional amount | $ 286.2 | 367.3 | ||||
Derivative maturity (in months) | 24 months | |||||
Unrealized gain (loss) on foreign currency forward contracts, net of tax | Net Investment Hedges | Designated as Hedging Instrument | INDIA | ||||||
Derivative [Line Items] | ||||||
Derivative asset, notional amount | $ 65.7 | 48 | ||||
Derivative maturity (in months) | 36 months | |||||
Net investment hedges for a cash loss | $ 0.6 | |||||
Unrealized gain (loss) on interest rate swaps, net of tax | Cash Flow Hedging | Designated as Hedging Instrument | 2025 Term Loan | Secured Debt | ||||||
Derivative [Line Items] | ||||||
Derivative asset, notional amount | $ 350 | 350 | $ 350 | |||
Derivative, fixed interest rate | 2.968% | |||||
Unrealized gain (loss) on interest rate swaps, net of tax | Cash Flow Hedging | Designated as Hedging Instrument | 2030 Term Loan | Secured Debt | ||||||
Derivative [Line Items] | ||||||
Derivative asset, notional amount | 350 | $ 350 | $ 350 | |||
Derivative, fixed interest rate | 3.47% | |||||
Unrealized gain (loss) on interest rate swaps, net of tax | Cash Flow Hedging | Designated as Hedging Instrument | 2030 New Term Loan | Secured Debt | ||||||
Derivative [Line Items] | ||||||
Derivative asset, notional amount | $ 350 | $ 350 | ||||
Derivative, fixed interest rate | 3.287% |
SHORT-TERM AND LONG-TERM DEBT -
SHORT-TERM AND LONG-TERM DEBT - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |||||
Oct. 24, 2023 | Jan. 19, 2023 | Jul. 27, 2024 | Jul. 29, 2023 | Oct. 28, 2023 | Jan. 18, 2022 | |
Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of debt | $ 1,200,000 | |||||
2030 New Term Loan | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | 1,200,000 | $ 1,164,150 | ||||
Installment payment | 2,900 | |||||
Annual payments | 11,700 | |||||
Amortization of debt issuance costs | 700 | |||||
Fair value of debt | 1,200,000 | |||||
2030 New Term Loan | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Deferred debt issuance costs | 5,800 | $ 5,500 | ||||
The Credit Facility | Line of Credit | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 300,000 | |||||
2025 Term Loan | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Amortization of debt issuance costs | $ 500 | |||||
2030 Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Amortization of debt issuance costs | 400 | |||||
Debt instrument, face amount | $ 500,000 | |||||
Proceeds from issuance of debt | $ 492,300 | |||||
2030 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Deferred debt issuance costs | 367,000 | |||||
2030 Notes | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | 400,000 | |||||
2030 Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Deferred debt issuance costs | 3,700 | $ 4,300 | ||||
Amortization of debt issuance costs | $ 500 | $ 500 | ||||
Debt instrument, face amount | $ 400,000 | |||||
Debt instrument, interest rate, stated percentage | 4% |
SHORT-TERM AND LONG-TERM DEBT_2
SHORT-TERM AND LONG-TERM DEBT - Net Carrying Values of Term Loans (Details) - Secured Debt - USD ($) $ in Thousands | Jul. 27, 2024 | Oct. 28, 2023 | Oct. 24, 2023 |
2030 New Term Loan | |||
Debt Instrument [Line Items] | |||
Principal Balance | $ 1,164,150 | $ 1,200,000 | |
Unamortized Discount | (4,560) | ||
Deferred Debt Issuance Costs | (5,830) | ||
Net Carrying Value | 1,153,760 | $ 1,159,371 | |
2030 Notes | |||
Debt Instrument [Line Items] | |||
Principal Balance | 400,000 | ||
Deferred Debt Issuance Costs | (3,745) | ||
Net Carrying Value | $ 396,255 | $ 395,735 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 27, 2024 | Jul. 29, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Equity - beginning balance | $ 2,848,361 | $ 2,712,861 |
Equity- ending balance | 2,890,872 | 2,947,007 |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Equity - beginning balance | (37,767) | (46,645) |
Other comprehensive gain (loss) before reclassifications | 5,070 | 48,889 |
Amounts reclassified from AOCI | (7,495) | (14,022) |
Equity- ending balance | (40,192) | (11,778) |
Available-for-sale Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Equity - beginning balance | (372) | (2,965) |
Other comprehensive gain (loss) before reclassifications | 493 | 2,075 |
Amounts reclassified from AOCI | 0 | 0 |
Equity- ending balance | 121 | (890) |
Unrealized Gain (Loss) Derivatives | Foreign Currency Forward Contracts | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Equity - beginning balance | (8,156) | (10,197) |
Other comprehensive gain (loss) before reclassifications | (112) | 17,070 |
Amounts reclassified from AOCI | 3,848 | (7,756) |
Equity- ending balance | (4,420) | (883) |
Unrealized Gain (Loss) Derivatives | Interest Rate Swaps | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Equity - beginning balance | 18,962 | 9,397 |
Other comprehensive gain (loss) before reclassifications | 1,728 | 11,763 |
Amounts reclassified from AOCI | (11,343) | (6,266) |
Equity- ending balance | 9,347 | 14,894 |
Cumulative Translation Adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Equity - beginning balance | (48,201) | (42,880) |
Other comprehensive gain (loss) before reclassifications | 2,961 | 17,981 |
Amounts reclassified from AOCI | 0 | 0 |
Equity- ending balance | $ (45,240) | $ (24,899) |
EARNINGS_PER SHARE CALCULATIO_2
EARNINGS PER SHARE CALCULATION (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 27, 2024 | Jul. 29, 2023 | Jul. 27, 2024 | Jul. 29, 2023 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 14,230 | $ 29,733 | $ 46,928 | $ 163,628 |
Basic weighted average shares outstanding (in shares) | 144,394 | 149,690 | 144,876 | 149,472 |
Effect of dilutive potential common shares (in shares) | 967 | 287 | 919 | 395 |
Dilutive weighted average shares (in shares) | 145,361 | 149,977 | 145,795 | 149,867 |
Basic EPS (in dollars per share) | $ 0.10 | $ 0.20 | $ 0.32 | $ 1.09 |
Diluted EPS (in dollars per share) | $ 0.10 | $ 0.20 | $ 0.32 | $ 1.09 |
Antidilutive employee share-based awards, excluded (in shares) | 690 | 3,383 | 1,286 | 2,567 |
STOCKHOLDERS_ EQUITY (Details)
STOCKHOLDERS’ EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 9 Months Ended | ||
Jul. 27, 2024 | Jul. 29, 2023 | Dec. 09, 2021 | |
Equity [Abstract] | |||
Stock repurchase program authorized amount | $ 1,000,000 | ||
Repurchase of common stock under the stock repurchase program (in shares) | 2.4 | ||
Repurchase of common stock under the stock repurchase program (in shares) | $ 118,000 | ||
Repurchase of common stock under the stock repurchase program (in dollars per share) | $ 48.86 | ||
Aggregate shares repurchased (in shares) | 16.5 | ||
Aggregate shares repurchased | $ 868,000 | ||
Aggregate average price of shares repurchased (in dollars per share) | $ 52.54 | ||
Authorized funds remaining under stock repurchase program | $ 132,000 | ||
Shares repurchased for tax withholdings on vesting of restricted stock units | $ 33,450 | $ 29,794 |
SHARE-BASED COMPENSATION EXPE_3
SHARE-BASED COMPENSATION EXPENSE - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 27, 2024 | Mar. 21, 2024 | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized share-based compensation | $ 251.9 | |
Weighted-average period for recognition of share-based compensation (in years) | 1 year 4 months 24 days | |
Two Thousand Seventeen Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized (in shares) | 31,200,000 | 10,100,000 |
Number of shares available for issuance thereafter (in shares) | 10,900,000 |
SHARE-BASED COMPENSATION EXPE_4
SHARE-BASED COMPENSATION EXPENSE - Schedule of Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 27, 2024 | Jul. 29, 2023 | Jul. 27, 2024 | Jul. 29, 2023 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense capitalized in inventory, net | $ (114) | $ 127 | $ 148 | $ 257 |
Total share-based compensation expense | 37,358 | 33,033 | 115,433 | 95,405 |
Share-based compensation expense included in cost of goods sold | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense included in operating expense | 4,782 | 3,805 | 14,224 | 10,967 |
Products | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense included in operating expense | 1,660 | 1,118 | 4,738 | 3,324 |
Services | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense included in operating expense | 3,122 | 2,687 | 9,486 | 7,643 |
Share-based compensation expense included in operating expense | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense included in operating expense | 32,690 | 29,101 | 101,061 | 84,181 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense included in operating expense | 13,118 | 10,954 | 40,064 | 30,919 |
Selling and marketing | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense included in operating expense | 10,315 | 8,770 | 31,786 | 25,949 |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense included in operating expense | $ 9,257 | $ 9,377 | $ 29,211 | $ 27,313 |
SEGMENTS AND ENTITY-WIDE DISC_3
SEGMENTS AND ENTITY-WIDE DISCLOSURES - Narrative (Details) $ in Thousands | 9 Months Ended | |
Jul. 27, 2024 USD ($) segment | Oct. 28, 2023 USD ($) | |
Segment Reporting [Abstract] | ||
Equipment, building, furniture and fixtures, net | $ 299,161 | $ 280,147 |
Operating right-of-use assets | $ 28,717 | $ 35,140 |
Number of operating segments | segment | 4 |
SEGMENTS AND ENTITY-WIDE DISC_4
SEGMENTS AND ENTITY-WIDE DISCLOSURES - Other Intangibles Assets, Goodwill and Maintenance Spares (Details) - USD ($) $ in Thousands | Jul. 27, 2024 | Oct. 28, 2023 |
Segment Reporting Information [Line Items] | ||
Other intangible assets, net | $ 174,974 | |
Goodwill | 444,791 | $ 444,765 |
Maintenance spares, net | 68,100 | $ 54,042 |
Networking Platforms | ||
Segment Reporting Information [Line Items] | ||
Other intangible assets, net | 166,067 | |
Goodwill | 199,551 | |
Maintenance spares, net | 0 | |
Platform Software and Services | ||
Segment Reporting Information [Line Items] | ||
Other intangible assets, net | 0 | |
Goodwill | 156,191 | |
Maintenance spares, net | 0 | |
Blue Planet Automation Software and Services | ||
Segment Reporting Information [Line Items] | ||
Other intangible assets, net | 8,907 | |
Goodwill | 89,049 | |
Maintenance spares, net | 0 | |
Global Services | ||
Segment Reporting Information [Line Items] | ||
Other intangible assets, net | 0 | |
Goodwill | 0 | |
Maintenance spares, net | $ 68,100 |
SEGMENTS AND ENTITY-WIDE DISC_5
SEGMENTS AND ENTITY-WIDE DISCLOSURES - Revenue, Profit (Loss) and Net Income (Loss) Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 27, 2024 | Jul. 29, 2023 | Jul. 27, 2024 | Jul. 29, 2023 | |
Less: Non-performance operating expenses | ||||
Selling and marketing | $ 121,520 | $ 118,266 | $ 373,749 | $ 367,156 |
General and administrative | 58,248 | 49,349 | 162,504 | 151,184 |
Significant asset impairments and restructuring costs | 1,361 | 4,174 | 21,987 | 16,625 |
Amortization of intangible assets | 7,185 | 9,487 | 22,384 | 26,773 |
Acquisition and integration costs | 0 | 59 | 0 | 3,474 |
Add: Other non-performance financial items | ||||
Interest and other income, net | 14,013 | 10,187 | 36,460 | 50,711 |
Interest expense | (24,401) | (24,060) | (72,038) | (63,819) |
Less: Provision for income taxes | 2,125 | 34,608 | 24,901 | 89,507 |
Net income | 14,230 | 29,733 | 46,928 | 163,628 |
Operating Segments | ||||
Add: Other non-performance financial items | ||||
Net income | 215,057 | 259,549 | 688,031 | 831,455 |
Operating Segments | Networking Platforms | ||||
Add: Other non-performance financial items | ||||
Net income | 106,870 | 171,380 | 387,211 | 588,281 |
Operating Segments | Platform Software and Services | ||||
Add: Other non-performance financial items | ||||
Net income | 53,131 | 49,691 | 165,171 | 136,028 |
Operating Segments | Blue Planet Automation Software and Services | ||||
Add: Other non-performance financial items | ||||
Net income | 4,705 | (12,072) | (10,127) | (30,044) |
Operating Segments | Global Services | ||||
Add: Other non-performance financial items | ||||
Net income | $ 50,351 | $ 50,550 | $ 145,776 | $ 137,190 |
SEGMENTS AND ENTITY-WIDE DISC_6
SEGMENTS AND ENTITY-WIDE DISCLOSURES - Geographic Distribution of Equipment, Building, Furniture and Fixtures (Details) - USD ($) $ in Thousands | Jul. 27, 2024 | Oct. 28, 2023 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Equipment, building, furniture and fixtures, net | $ 327,878 | $ 315,287 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Equipment, building, furniture and fixtures, net | 248,024 | 229,707 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Equipment, building, furniture and fixtures, net | 46,781 | 46,933 |
Other International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Equipment, building, furniture and fixtures, net | $ 33,073 | $ 38,647 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Billions | Jul. 27, 2024 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase obligation | $ 1.5 |