Item 1. Financial Statements

CIENA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

			Quarter Ended												Six Months Ended
			May 3,						April 27,						May 3,						April 27,
			2025						2024						2025						2024
Revenue:
Products			$	898,581					$	701,316					$	1,753,366					$	1,537,093
Services			227,297						209,510						444,772						411,442
Total revenue			1,125,878						910,826						2,198,138						1,948,535
Cost of goods sold:
Products			549,984						415,732						1,040,788						882,204
Services			123,056						106,433						232,691						210,708
Total cost of goods sold			673,040						522,165						1,273,479						1,092,912
Gross profit			452,838						388,661						924,659						855,623
Operating expenses:
Research and development			214,868						195,380						407,531						382,649
Selling and marketing			139,683						124,071						276,187						252,229
General and administrative			56,952						49,573						110,854						104,256
Significant asset impairments and restructuring costs			1,948						15,655						3,492						20,626
Amortization of intangible assets			6,545						7,947						13,090						15,199
Total operating expenses			419,996						392,626						811,154						774,959
Income (loss) from operations			32,842						(3,965)						113,505						80,664
Interest and other income, net			7,871						11,797						19,449						22,447
Interest expense			(21,697)						(23,861)						(44,615)						(47,637)
Loss on extinguishment and modification of debt			—						—						(729)						—
Income (loss) before income taxes			19,016						(16,029)						87,610						55,474
Provision for income taxes			10,047						820						34,069						22,776
Net income (loss)			$	8,969					$	(16,849)					$	53,541					$	32,698
Basic net income (loss) per common share			$	0.06					$	(0.12)					$	0.38					$	0.23
Diluted net income (loss) per potential common share			$	0.06					$	(0.12)					$	0.37					$	0.22
Weighted average basic common shares outstanding			142,503						144,914						142,704						145,104
Weighted average dilutive potential common shares outstanding			144,972						144,914						145,470						146,059

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

CIENA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

(unaudited)

			Quarter Ended												Six Months Ended
			May 3,						April 27,						May 3,						April 27,
			2025						2024						2025						2024
Net income (loss)			$	8,969					$	(16,849)					$	53,541					$	32,698
Unrealized loss on available-for-sale securities, net of tax			(55)						(1,178)						(399)						(282)
Unrealized gain (loss) on foreign currency forward contracts, net of tax			11,170						(2,548)						6,685						4,608
Unrealized gain (loss) on interest rate swaps, net of tax			(8,835)						13,539						(6,882)						4,065
Change in cumulative translation adjustments			25,414						(6,676)						7,711						7,647
Other comprehensive income			27,694						3,137						7,115						16,038
Total comprehensive income (loss)			$	36,663					$	(13,712)					$	60,656					$	48,736

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

CIENA CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

(unaudited)

			May 3, 2025						November 2, 2024
ASSETS
Current assets:
Cash and cash equivalents			$	949,771					$	934,863
Short-term investments			304,177						316,343
Accounts receivable, net of allowance for credit losses of $9.8 million and $9.9 million as of May 3, 2025 and November 2, 2024, respectively.			929,799						908,597
Inventories, net			874,326						820,430
Prepaid expenses and other			506,252						564,183
Total current assets			3,564,325						3,544,416
Long-term investments			92,121						80,920
Equipment, building, furniture and fixtures, net			349,349						337,722
Operating right-of-use assets			38,655						27,417
Goodwill			444,805						444,707
Other intangible assets, net			147,459						165,020
Deferred tax asset, net			863,571						886,441
Other long-term assets			159,081						154,694
Total assets			$	5,659,366					$	5,641,337
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable			$	419,077					$	423,401
Accrued liabilities and other short-term obligations			381,398						393,905
Deferred revenue			221,835						156,379
Operating lease liabilities			13,170						14,455
Current portion of long-term debt			11,580						11,700
Total current liabilities			1,047,060						999,840
Long-term deferred revenue			83,239						81,240
Other long-term obligations			188,809						185,938
Long-term operating lease liabilities			35,103						25,107
Long-term debt, net			1,528,776						1,533,074
Total liabilities			2,882,987						2,825,199
Commitments and contingencies (Note 18)
Stockholders’ equity:
Preferred stock – par value $0.01; 20,000,000 shares authorized; zero shares issued and outstanding			—						—
Common stock – par value $0.01; 290,000,000 shares authorized; 141,686,082 and 142,656,116 shares issued and outstanding			1,417						1,427
Additional paid-in capital			6,054,464						6,154,869
Accumulated other comprehensive loss			(39,596)						(46,711)
Accumulated deficit			(3,239,906)						(3,293,447)
Total stockholders’ equity			2,776,379						2,816,138
Total liabilities and stockholders’ equity			$	5,659,366					$	5,641,337

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

CIENA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands) (unaudited)

			Six Months Ended
			May 3,						April 27,
			2025						2024
Cash flows provided by operating activities:
Net income			$	53,541					$	32,698
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements			49,771						46,016
Share-based compensation expense			88,767						78,075
Amortization of intangible assets			17,555						20,726
Deferred taxes			(10,470)						(8,946)
Provision for inventory excess and obsolescence			23,431						23,152
Provision for warranty			10,714						8,629
Other			(6,355)						11,509
Changes in assets and liabilities:
Accounts receivable			(20,857)						155,107
Inventories			(76,904)						5,346
Prepaid expenses and other			84,144						(37,441)
Operating lease right-of-use assets			5,580						6,111
Accounts payable, accruals and other obligations			(16,755)						(56,064)
Deferred revenue			66,493						48,641
Short- and long-term operating lease liabilities			(7,986)						(9,010)
Net cash provided by operating activities			260,669						324,549
Cash flows used in investing activities:
Payments for equipment, furniture, fixtures and intellectual property			(55,622)						(33,500)
Purchases of investments			(159,102)						(171,131)
Proceeds from sales and maturities of investments			164,837						83,013
Settlement of foreign currency forward contracts, net			2,441						(828)
Purchase of equity investment			—						(16,256)
Net cash used in investing activities			(47,446)						(138,702)
Cash flows used in financing activities:
Proceeds from modification of debt, net			19,175						—
Cash paid for extinguishment of debt			(19,175)						—
Payment of long-term debt			(5,790)						(2,925)
Payment of debt issuance costs			(12)						(2,554)
Payment of finance lease obligations			(2,110)						(1,989)
Shares repurchased for tax withholdings on vesting of stock unit awards			(42,266)						(22,428)
Repurchases of common stock - repurchase program, net			(168,197)						(94,817)
Proceeds from issuance of common stock			17,132						16,876
Net cash used in financing activities			(201,243)						(107,837)
Effect of exchange rate changes on cash, cash equivalents and restricted cash			2,937						2,659
Net increase in cash, cash equivalents and restricted cash			14,917						80,669
Cash, cash equivalents and restricted cash at beginning of period			935,026						1,010,786
Cash, cash equivalents and restricted cash at end of period			$	949,943					$	1,091,455
Supplemental disclosure of cash flow information
Cash paid during the period for interest, net			$	43,200					$	45,782
Cash paid during the period for income taxes, net			$	55,466					$	29,193
Operating lease payments			$	8,812					$	9,964
Non-cash investing and financing activities
Purchase of equipment in accounts payable			$	12,545					$	6,365
Repurchase of common stock in accrued liabilities from repurchase program, net			$	2,023					$	3,859
Operating right-of-use assets subject to lease liability			$	16,351					$	3,639

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

CIENA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(in thousands, except share data)

(unaudited)

			Common Stock Shares						Par Value						Additional Paid-in-Capital						Accumulated Other Comprehensive Loss						Accumulated Deficit						Total Stockholders’ Equity
Balance at November 2, 2024			142,656,116						$	1,427					$	6,154,869					$	(46,711)					$	(3,293,447)					$	2,816,138
Net income			—						—						—						—						53,541						53,541
Other comprehensive income			—						—						—						7,115						—						7,115
Repurchase of common stock - repurchase program, net			(2,242,455)						(22)						(164,026)						—						—						(164,048)
Issuance of shares from employee equity plans			1,827,185						18						17,114						—						—						17,132
Share-based compensation expense			—						—						88,767						—						—						88,767
Shares repurchased for tax withholdings on vesting of stock unit awards			(554,764)						(6)						(42,260)						—						—						(42,266)
Balance at May 3, 2025			141,686,082						$	1,417					$	6,054,464					$	(39,596)					$	(3,239,906)					$	2,776,379

			Common Stock Shares						Par Value						Additional Paid-in-Capital						Accumulated Other Comprehensive Loss						Accumulated Deficit						Total Stockholders’ Equity
Balance at October 28, 2023			144,829,938						$	1,448					$	6,262,083					$	(37,767)					$	(3,377,403)					$	2,848,361
Net income			—						—						—						—						32,698						32,698
Other comprehensive income			—						—						—						16,038						—						16,038
Repurchase of common stock - repurchase program, net			(1,816,529)						(18)						(89,346)						—						—						(89,364)
Issuance of shares from employee equity plans			1,667,555						17						16,859						—						—						16,876
Share-based compensation expense			—						—						78,075						—						—						78,075
Shares repurchased for tax withholdings on vesting of stock unit awards			(481,763)						(5)						(22,423)						—						—						(22,428)
Balance at April 27, 2024			144,199,201						$	1,442					$	6,245,248					$	(21,729)					$	(3,344,705)					$	2,880,256

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

CIENA CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

(1) INTERIM FINANCIAL STATEMENTS

The interim financial statements for Ciena Corporation and its wholly owned subsidiaries (“Ciena”) included herein 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 November 2, 2024 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 November 2, 2024 (the “2024 Annual Report”).

Ciena has a 52 or 53-week fiscal year, with quarters ending on the Saturday nearest to the last day of January, April, July, and October, respectively, of each year. Fiscal 2025 is a 52-week fiscal year. Fiscal 2024 was a 53-week fiscal year with the additional week occurring in the fourth quarter.

(2) SIGNIFICANT ACCOUNTING POLICIES

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 2024 Annual Report.

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 Ciena’s fiscal 2025 Annual Report on Form 10-K on a retrospective basis. Early adoption is permitted. Ciena is currently evaluating the impact of this ASU on its segment 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 November 2024, the FASB issued ASU No. 2024-03 (“ASU 2024-03”), Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40), to improve financial reporting by requiring that public business entities disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027; however, early adoption is permitted. ASU 2024-03 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.

**(3)**REVENUE

Segment and Product Line Disaggregation of Revenue

Ciena’s disaggregated segment and product line revenue as presented below depicts the nature, amount, and timing of revenue and cash flows for similar groupings of Ciena’s various offerings. The sales cycle, contractual obligations, customer requirements, and go-to-market strategies may differ for each of its product categories, resulting in different economic risk profiles for each category. 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. See Note 17 below.

The tables below set forth Ciena’s disaggregated revenue for the periods indicated (in thousands):

			Quarter Ended May 3, 2025
			Networking Platforms						Platform Software and Services						Blue Planet Automation Software and Services						Global Services						Total
Product lines:
Optical Networking			$	773,592					$	—					$	—					$	—					$	773,592
Routing and Switching			92,723						—						—						—						92,723
Platform Software and Services			—						85,441						—						—						85,441
Blue Planet Automation Software and Services			—						—						27,951						—						27,951
Maintenance Support and Training			—						—						—						79,442						79,442
Installation and Deployment			—						—						—						58,174						58,174
Consulting and Network Design			—						—						—						8,555						8,555
Total revenue by product line			$	866,315					$	85,441					$	27,951					$	146,171					$	1,125,878
Timing of revenue recognition:
Products and services at a point in time			$	866,315					$	22,048					$	10,511					$	7,844					$	906,718
Services transferred over time			—						63,393						17,440						138,327						219,160
Total revenue by timing of revenue recognition			$	866,315					$	85,441					$	27,951					$	146,171					$	1,125,878

			Quarter Ended April 27, 2024
			Networking Platforms						Platform Software and Services						Blue Planet Automation Software and Services						Global Services						Total
Product lines:
Optical Networking			$	560,224					$	—					$	—					$	—					$	560,224
Routing and Switching			116,034						—						—						—						116,034
Platform Software and Services			—						85,445						—						—						85,445
Blue Planet Automation Software and Services			—						—						14,434						—						14,434
Maintenance Support and Training			—						—						—						77,410						77,410
Installation and Deployment			—						—						—						43,785						43,785
Consulting and Network Design			—						—						—						13,494						13,494
Total revenue by product line			$	676,258					$	85,445					$	14,434					$	134,689					$	910,826
Timing of revenue recognition:
Products and services at a point in time			$	676,258					$	22,689					$	2,848					$	10,432					$	712,227
Services transferred over time			—						62,756						11,586						124,257						198,599
Total revenue by timing of revenue recognition			$	676,258					$	85,445					$	14,434					$	134,689					$	910,826

			Six Months Ended May 3, 2025
			Networking Platforms						Platform Software and Services						Blue Planet Automation Software and Services						Global Services						Total
Product lines:
Optical Networking			$	1,501,566					$	—					$	—					$	—					$	1,501,566
Routing and Switching			185,892						—						—						—						185,892
Platform Software and Services			—						180,508						—						—						180,508
Blue Planet Automation Software and Services			—						—						53,982						—						53,982
Maintenance Support and Training			—						—						—						154,014						154,014
Installation and Deployment			—						—						—						105,857						105,857
Consulting and Network Design			—						—						—						16,319						16,319
Total revenue by product line			$	1,687,458					$	180,508					$	53,982					$	276,190					$	2,198,138
Timing of revenue recognition:
Products and services at a point in time			$	1,687,458					$	50,979					$	20,937					$	13,977					$	1,773,351
Services transferred over time			—						129,529						33,045						262,213						424,787
Total revenue by timing of revenue recognition			$	1,687,458					$	180,508					$	53,982					$	276,190					$	2,198,138

			Six Months Ended April 27, 2024
			Networking Platforms						Platform Software and Services						Blue Planet Automation Software and Services						Global Services						Total
Product lines:
Optical Networking			$	1,256,072					$	—					$	—					$	—					$	1,256,072
Routing and Switching			227,421						—						—						—						227,421
Platform Software and Services			—						175,190						—						—						175,190
Blue Planet Automation Software and Services			—						—						28,376						—						28,376
Maintenance Support and Training			—						—						—						151,525						151,525
Installation and Deployment			—						—						—						86,509						86,509
Consulting and Network Design			—						—						—						23,442						23,442
Total revenue by product line			$	1,483,493					$	175,190					$	28,376					$	261,476					$	1,948,535
Timing of revenue recognition:
Products and services at a point in time			$	1,483,493					$	50,383					$	3,916					$	20,071					$	1,557,863
Services transferred over time			—						124,807						24,460						241,405						390,672
Total revenue by timing of revenue recognition			$	1,483,493					$	175,190					$	28,376					$	261,476					$	1,948,535

• 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® system, the 6500 Reconfigurable Line System (RLS), coherent pluggable transceivers, and other optical networking products.

• Routing and Switching - includes the 3000 and 5000 series of service delivery and aggregation platforms, the 8100 Coherent IP networking platforms, virtualization software, and passive optical network and other routing and switching portfolio products.

Revenue from this segment is included in product revenue on the Condensed Consolidated Statements of Operations.

• Platform Software and Services revenue reflects sales of Ciena’s Platform Software and Platform Services.

• Platform Software - includes Ciena’s Navigator Network Control SuiteTM domain controller solution and its applications, and legacy software solutions.

• Platform Services - 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 revenue reflects sales of Blue Planet Automation Software and Blue Planet Services.

• Blue Planet Automation Software - includes inventory management, orchestration, route optimization and analysis, and unified assurance and analytics software.

• Blue Planet Services - includes sales of subscription, installation, support, consulting and design services related to the 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 the services portions of this segment is included in services revenue on the Condensed Consolidated Statements of Operations.

• 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.

Revenue Recognition

• Revenue from the Networking Platforms segment includes, in addition to the products described above, sales of operating system software and enhanced software features embedded therein, which are each considered distinct performance obligations for which the revenue is generally recognized upfront at a point in time upon transfer of control.

• Revenue from software platforms 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 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 generally 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.

For additional information on Ciena’s revenue recognition policy, see Notes to Consolidated Financial Statements in Item 8 of Part II of the 2024 Annual Report.

Geographic Disaggregation of Revenue

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												Six Months Ended
						May 3,						April 27,						May 3,						April 27,
						2025						2024						2025						2024
Geographic distribution:
Americas						$	833,822					$	662,877					$	1,629,454					$	1,381,075
EMEA						191,585						155,791						349,501						363,203
APAC						100,471						92,158						219,183						204,257
Total revenue by geographic distribution						$	1,125,878					$	910,826					$	2,198,138					$	1,948,535

Ciena’s revenue includes $797.5 million and $618.8 million of U.S. revenue for the second quarter of fiscal 2025 and 2024, respectively. For the six months ended May 3, 2025 and April 27, 2024, U.S. revenue was $1.6 billion and $1.3 billion, respectively. No other country accounted for 10% or more of total revenue for the periods indicated in the above table.

Ciena’s revenue includes $151.3 million and $320.2 million from a cloud provider for the second quarter and six months ended May 3, 2025, respectively, and such customer did not account for 10% or more of total revenue for the second quarter or six months ended April 27, 2024. Revenue also includes $117.4 million and $228.4 million from AT&T for the second quarter and six months ended May 3, 2025, respectively, and $125.5 million and $211.7 million for the second quarter and six months ended April 27, 2024, respectively. These customers purchased products from the Networking Platforms, Platform Software and Services, and Global Services operating segments for the periods presented. No other customer accounted for 10% or more of total revenue for the periods presented.

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 May 3, 2025						Balance at November 2, 2024
Accounts receivable, net						$	929,799					$	908,597
Contract assets for unbilled accounts receivable, net						$	151,769					$	127,919
Deferred revenue						$	305,074					$	237,619

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.

Contract liabilities consist of deferred revenue and represent advanced payments against non-cancelable customer orders received prior to revenue recognition. Ciena recognized approximately $111.3 million and $105.3 million of revenue during the first six months of fiscal 2025 and 2024, respectively, that was included in the deferred revenue balance as of November 2, 2024 and October 28, 2023, respectively. Revenue recognized due to changes in transaction price from performance obligations satisfied or partially satisfied in previous periods was immaterial during the six months ended May 3, 2025 and April 27, 2024.

As of the dates indicated, deferred revenue is comprised of the following (in thousands):

			May 3, 2025						November 2, 2024
Products			$	31,651					$	19,017
Services			273,423						218,602
Total deferred revenue			305,074						237,619
Less current portion			(221,835)						(156,379)
Long-term deferred revenue			$	83,239					$	81,240

Capitalized Contract Acquisition Costs

Capitalized contract acquisition costs consist of deferred sales commissions and were $29.3 million and $28.4 million as of May 3, 2025 and November 2, 2024, 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 $16.7 million and $14.9 million during the first six months of fiscal 2025 and 2024, 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 May 3, 2025, the aggregate amount of RPO was $1.7 billion. As of May 3, 2025, Ciena expects approximately 79% of the RPO balance to be recognized as revenue within the next 12 months.

**(4)**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 six months ended May 3, 2025 (in thousands):

			Workforce reduction						Other restructuring activities						Total
Balance at November 2, 2024			$	1,927					$	—					$	1,927
Charges			1,589						1,903			(1)			3,492
Cash payments			(2,840)						(1,903)						(4,743)
Balance at May 3, 2025			$	676					$	—					$	676
Current restructuring liabilities			$	676					$	—					$	676

(1) Primarily represents costs related to restructured real estate facilities.

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 six months ended April 27, 2024 (in thousands):

			Workforce reduction						Other restructuring activities						Total
Balance at October 28, 2023			$	1,913					$	—					$	1,913
Charges			13,984			(1)			6,642			(2)			20,626
Cash payments			(7,147)						(6,642)						(13,789)
Balance at April 27, 2024			$	8,750					$	—					$	8,750
Current restructuring liabilities			$	8,750					$	—					$	8,750

(1) Reflects a global workforce reduction of approximately 360 employees during the six months ended April 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.

**(5)**INTEREST AND OTHER INCOME, NET

The components of interest and other income, net, are as follows for the periods indicated (in thousands):

			Quarter Ended												Six Months Ended
			May 3,						April 27,						May 3,						April 27,
			2025						2024						2025						2024
Interest income			$	13,435					$	15,255					$	27,145					$	30,433
Gains (losses) on non-hedge designated foreign currency forward contracts(1)			536						(1,114)						(2,337)						1,998
Foreign currency exchange losses(2)			(4,243)						(411)						(3,003)						(9,604)
Other			(1,857)						(1,933)						(2,356)						(380)
Interest and other income, net			$	7,871					$	11,797					$	19,449					$	22,447

(1) Ciena has forward contracts in place to hedge its foreign exchange exposure in order to reduce the variability in various currencies of certain balance sheet items. 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.

(2) 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. The related remeasurement adjustments were recorded in interest and other income, net, on the Condensed Consolidated Statements of Operations.

**(6)**INCOME TAXES

The effective tax rate for the second quarter of fiscal 2025 was higher than the effective tax rate for the second quarter of fiscal 2024, primarily due to a change in valuation allowance and interest expense related to previously recorded uncertain tax positions.

The effective tax rate for the first six months of fiscal 2025 was lower than the effective tax rate for the first six months of fiscal 2024, primarily due to an income tax benefit for share-based compensation expense.

For the six months ended May 3, 2025, the impact of the 15% global minimum tax, referred to as Pillar Two, was not material to the consolidated financial statements.

**(7)**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):

			May 3, 2025
			Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Estimated Fair Value
U.S. government obligations			$	272,552					$	500					$	(28)					$	273,024
Corporate debt securities			122,049						130						(58)						122,121
Time deposits			125,479						1						(2)						125,478
			$	520,080					$	631					$	(88)					$	520,623
Included in cash equivalents			$	124,325					$	—					$	—					$	124,325
Included in short-term investments			303,798						412						(33)						304,177
Included in long-term investments			91,957						219						(55)						92,121
			$	520,080					$	631					$	(88)					$	520,623

			November 2, 2024
			Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Estimated Fair Value
U.S. government obligations			$	285,492					$	751					$	(62)					$	286,181
Corporate debt securities			111,103						137						(97)						111,143
Time deposits			92,803						4						(3)						92,804
			$	489,398					$	892					$	(162)					$	490,128
Included in cash equivalents			$	92,865					$	—					$	—					$	92,865
Included in short-term investments			315,654						734						(45)						316,343
Included in long-term investments			80,879						158						(117)						80,920
			$	489,398					$	892					$	(162)					$	490,128

The following table summarizes the final legal maturities of debt investments as of May 3, 2025 (in thousands):

			Amortized Cost						Estimated Fair Value
Less than one year			$	428,123					$	428,502
Due in 1-2 years			91,957						92,121
			$	520,080					$	520,623

**(8)**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):

			May 3, 2025
			Level 1						Level 2						Level 3						Total
Assets:
Money market funds			$	584,853					$	—					$	—					$	584,853
Bond mutual fund			115,236						—						—						115,236
Time deposits			125,478						—						—						125,478
Deferred compensation plan assets			18,003						—						—						18,003
U.S. government obligations			—						273,024						—						273,024
Corporate debt securities			—						122,121						—						122,121
Foreign currency forward contracts			—						8,165						—						8,165
Interest rate swaps			—						2,421						—						2,421
Total assets measured at fair value			$	843,570					$	405,731					$	—					$	1,249,301
Liabilities:
Foreign currency forward contracts			$	—					$	5,054					$	—					$	5,054
Interest rate swaps			—						44						—						44
Total liabilities measured at fair value			$	—					$	5,098					$	—					$	5,098

			November 2, 2024
			Level 1						Level 2						Level 3						Total
Assets:
Money market funds			$	636,097					$	—					$	—					$	636,097
Bond mutual fund			112,703						—						—						112,703
Time deposits			92,804						—						—						92,804
Deferred compensation plan assets			16,519						—						—						16,519
U.S. government obligations			—						286,181						—						286,181
Corporate debt securities			—						111,143						—						111,143
Foreign currency forward contracts			—						2,149						—						2,149
Interest rate swaps			—						11,777						—						11,777
Total assets measured at fair value			$	858,123					$	411,250					$	—					$	1,269,373
Liabilities:
Foreign currency forward contracts			$	—					$	9,155					$	—					$	9,155
Total liabilities measured at fair value			$	—					$	9,155					$	—					$	9,155

As of the dates indicated, the assets and liabilities above are presented on Ciena’s Condensed Consolidated Balance Sheets as follows (in thousands):

			May 3, 2025
			Level 1						Level 2						Level 3						Total
Assets:
Cash equivalents			$	822,388					$	2,026					$	—					$	824,414
Short-term investments			3,179						300,998						—						304,177
Prepaid expenses and other			—						8,165						—						8,165
Long-term investments			—						92,121						—						92,121
Other long-term assets			18,003						2,421						—						20,424
Total assets measured at fair value			$	843,570					$	405,731					$	—					$	1,249,301
Liabilities:
Accrued liabilities and other short-term obligations			$	—					$	5,054					$	—					$	5,054
Other long-term obligations			—						44						—						44
Total liabilities measured at fair value			$	—					$	5,098					$	—					$	5,098

			November 2, 2024
			Level 1						Level 2						Level 3						Total
Assets:
Cash equivalents			$	832,239					$	9,426					$	—					$	841,665
Short-term investments			9,365						306,978						—						316,343
Prepaid expenses and other			—						2,149						—						2,149
Long-term investments			—						80,920						—						80,920
Other long-term assets			16,519						11,777						—						28,296
Total assets measured at fair value			$	858,123					$	411,250					$	—					$	1,269,373
Liabilities:
Accrued liabilities and other short-term obligations			$	—					$	9,155					$	—					$	9,155
Total liabilities measured at fair value			$	—					$	9,155					$	—					$	9,155

Ciena did not have any transfers between Level 1 and Level 2 fair value measurements during the periods presented.

(9) INVENTORIES

As of the dates indicated, inventories are comprised of the following (in thousands):

			May 3, 2025						November 2, 2024
Raw materials			$	646,991					$	542,785
Work-in-process			35,317						32,219
Finished goods			273,376						324,697
Deferred cost of goods sold			36,663						27,902
Gross inventories			992,347						927,603
Reserve for inventory excess and obsolescence			(118,021)						(107,173)
Inventories, net			$	874,326					$	820,430

During the first six months of fiscal 2025, Ciena recorded a provision for inventory excess and obsolescence of $23.4 million, primarily related to a decrease in the forecasted demand for certain Networking Platforms products. Deductions from the reserve for excess and obsolete inventory relate primarily to sales and disposal activities.

(10) DERIVATIVE INSTRUMENTS

Foreign Currency Derivatives

Ciena conducts business globally in many currencies, and thus is exposed to foreign currency exchange rate changes. To limit this exposure, Ciena enters into foreign currency contracts. Ciena does not enter into such contracts for speculative purposes.

As of May 3, 2025 and November 2, 2024, 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 $349.2 million and $257.0 million as of May 3, 2025 and November 2, 2024, respectively. These foreign exchange contracts have maturities of 24 months or less and have been designated as cash flow hedges.

As of May 3, 2025 and November 2, 2024, 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. The notional amount of these contracts was approximately $65.1 million and $65.4 million as of May 3, 2025 and November 2, 2024, respectively. These foreign exchange contracts have maturities of 36 months or less and have been designated as net investment hedges.

As of May 3, 2025 and November 2, 2024, 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 $140.9 million and $201.2 million as of May 3, 2025 and November 2, 2024, 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 12 below) and has hedged such risk by entering into floating-to-fixed interest rate swap arrangements (“interest rate swaps”).

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 rate swaps was $350.0 million as of May 3, 2025 and November 2, 2024.

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 was $350.0 million as of May 3, 2025 and November 2, 2024.

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 May 3, 2025 and November 2, 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 Refinanced 2030 Term Loan (as defined in Note 12 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.

(11) LEASES

Operating leases included on the Condensed Consolidated Balance Sheets for the fiscal periods indicated were as follows (in thousands):

			Classification						Balance at May 3, 2025						Balance at November 2, 2024
Operating leases:
Operating ROU Assets			Operating right-of-use assets						$	38,655					$	27,417
Operating lease liabilities			Operating lease liabilities and Long-term operating lease liabilities						$	48,273					$	39,562

Ciena added two new 10-year operating leases to its portfolio in the second quarter of fiscal 2025. The addition of these two operating leases increased both operating right-of-use (“ROU”) assets and lease liabilities for fiscal 2025.

(12) SHORT-TERM AND LONG-TERM DEBT

Outstanding Term Loan Payable

Refinanced 2030 Term Loan

Pursuant to a Credit Agreement, dated July 15, 2014, as amended (the “Credit Agreement”), by and among Ciena Corporation, the lenders party thereto and Bank of America, N.A., as administrative agent (the “Administrative Agent”), Ciena maintained a senior secured term loan with an outstanding aggregate principal amount, as of January 17, 2025, of approximately $1.16 billion and maturing on October 24, 2030 (the “2030 Term Loan”).

On January 17, 2025, Ciena Corporation, as borrower, and Ciena Communications, Inc., Ciena Government Solutions, Inc., Ciena Communications International, LLC and Blue Planet Software, Inc., as guarantors, entered into a Refinancing

Amendment to Credit Agreement with the lenders party thereto and the Administrative Agent (the “Amendment”), pursuant to which Ciena incurred a new single tranche of senior secured term loans in an aggregate principal amount of approximately $1.16 billion (the “Refinanced 2030 Term Loan”). The proceeds of the Refinanced 2030 Term Loan, together with cash on hand, were used to refinance in full the 2030 Term Loan, including accrued interest, and pay transaction fees and expenses. The Amendment amends the Credit Agreement and provides that the Refinanced 2030 Term Loan will, among other things:

• mature on October 24, 2030;

• amortize in equal quarterly installments in aggregate amounts equal to approximately 0.25% of the principal amount of the Refinanced 2030 Term Loan as of the Closing Date, with the balance payable at maturity;

• be subject to mandatory prepayment upon the occurrence of certain specified events substantially similar to the 2030 Term Loan, including upon the occurrence of certain specified events such as asset sales, debt issuances, and receipt of annual Excess Cash Flow (as defined in the Credit Agreement);

• bear interest, at Ciena’s election, at a per annum rate equal to (a) SOFR (subject to a floor of 0.00%) plus an applicable margin of 1.75%, or (b) a base rate (subject to a floor of 1.00%) plus an applicable margin of 0.75%;

• be repayable at any time at Ciena’s election, provided that repayment of the Refinanced 2030 Term Loan with proceeds of certain indebtedness prior to July 17, 2025 will require a prepayment premium of 1% of the aggregate principal amount of such prepayment; and

• except as described above or otherwise set forth in the Amendment, have substantially identical terms as the 2030 Term Loan.

Except as amended by the Amendment, the remaining terms of the Credit Agreement remain in full force and effect.

The net carrying value of the Ciena’s term loans were comprised of the following as of the date indicated (in thousands):

						May 3, 2025																								November 2, 2024
						Principal Balance						Unamortized Discount						Deferred Debt Issuance Costs						Net Carrying Value						Net Carrying Value
Refinanced 2030 Term Loan						$	1,152,510					$	(3,921)					$	(5,006)					$	1,143,583					$	—
2030 Term Loan						$	—					$	—					$	—					$	—					$	1,148,347

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 term loans. The amortization of deferred debt issuance costs for the term loans is included in interest expense and was approximately $0.5 million during both the first six months of fiscal 2025 and fiscal 2024.

As of May 3, 2025, the estimated fair value of the Refinanced 2030 Term Loan was $1.14 billion. Ciena’s term loan is categorized as Level 2 in the fair value hierarchy. Ciena estimated the fair value of its term loan using a market approach based on observable inputs, such as current market transactions involving comparable securities.

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):

						May 3, 2025																		November 2, 2024
						Principal Balance						Deferred Debt Issuance Costs						Net Carrying Value						Net Carrying Value
2030 Notes						$	400,000					$	(3,227)					$	396,773					$	396,427

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 $0.3 million during both the first six months of fiscal 2025 and fiscal 2024.

As of May 3, 2025, the estimated fair value of the 2030 Notes was $370.0 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.

**(13)**ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table summarizes the changes in accumulated balances of other comprehensive income (“AOCI”), net of tax, for the six months ended May 3, 2025 (in thousands):

			Unrealized Gain (Loss) on
			Available-for-sale Securities						Foreign Currency Forward Contracts												Interest Rate Swaps						Cumulative Translation Adjustment						Total
Balance at November 2, 2024			$	798					$	(4,880)											$	8,668					$	(51,297)					$	(46,711)
Other comprehensive gain (loss) before reclassifications			(399)						3,247												(2,548)						7,711						8,011
Amounts reclassified from AOCI			—						3,438												(4,334)						—						(896)
Balance at May 3, 2025			$	399					$	1,805											$	1,786					$	(43,586)					$	(39,596)

The following table summarizes the changes in AOCI, net of tax, for the six months ended April 27, 2024 (in thousands):

			Unrealized Gain (Loss) on
			Available-for-sale Securities						Foreign Currency Forward Contracts						Interest Rate Swaps						Cumulative Translation Adjustment						Total
Balance at October 28, 2023			$	(372)					$	(8,156)					$	18,962					$	(48,201)					$	(37,767)
Other comprehensive gain (loss) before reclassifications			(282)						2,812						11,681						7,647						21,858
Amounts reclassified from AOCI			—						1,796						(7,616)						—						(5,820)
Balance at April 27, 2024			$	(654)					$	(3,548)					$	23,027					$	(40,554)					$	(21,729)

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.

(14) EARNINGS (LOSS) PER SHARE CALCULATION

Basic net income (loss) per common share (“Basic EPS”) is computed using the weighted average number of common shares outstanding. Diluted net income (loss) 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, using the treasury stock method.

The following table presents the calculation of Basic EPS and Diluted EPS for the periods indicated (in thousands, except per share amounts):

			Quarter Ended												Six Months Ended
			May 3,						April 27,						May 3,						April 27,
			2025						2024						2025						2024
Net income (loss)			$	8,969					$	(16,849)					$	53,541					$	32,698
Basic weighted average shares outstanding			142,503						144,914						142,704						145,104
Effect of dilutive potential common shares			2,469						—						2,766						955
Diluted weighted average shares			144,972						144,914						145,470						146,059
Basic EPS			$	0.06					$	(0.12)					$	0.38					$	0.23
Diluted EPS			$	0.06					$	(0.12)					$	0.37					$	0.22
Antidilutive employee share-based awards, excluded			1,630						2,030						1,310						1,584

(15) STOCKHOLDERS’ EQUITY

Stock Repurchase Program

On October 2, 2024, Ciena announced that its Board of Directors authorized a three-year program to repurchase up to $1.0 billion of its common stock, commencing in fiscal 2025 and continuing through the end of fiscal 2027.

During the first six months of fiscal 2025, Ciena repurchased approximately 2.2 million shares of its common stock for an aggregate purchase price of approximately $163.5 million, which equates to an average price of $72.89 per share. As of May 3, 2025, Ciena has an aggregate of $836.5 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 $42.3 million for the shares of Ciena’s stock repurchased during the first six months of fiscal 2025 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.

(16) SHARE-BASED COMPENSATION EXPENSE

The following table summarizes share-based compensation expense for the periods indicated (in thousands):

			Quarter Ended												Six Months Ended
			May 3,						April 27,						May 3,						April 27,
			2025						2024						2025						2024
Products			$	2,033					$	1,760					$	3,783					$	3,078
Services			3,980						3,344						7,385						6,364
Share-based compensation expense included in cost of goods sold			6,013						5,104						11,168						9,442
Research and development			17,021						14,066						31,258						26,946
Selling and marketing			13,649						11,166						25,246						21,471
General and administrative			11,341						9,875						21,168						19,954
Share-based compensation expense included in operating expense			42,011						35,107						77,672						68,371
Share-based compensation expense capitalized in inventory, net			(64)						37						(73)						262
Total share-based compensation expense			$	47,960					$	40,248					$	88,767					$	78,075

As of May 3, 2025, total unrecognized share-based compensation expense was approximately $312.0 million, which relates to unvested stock unit awards and is expected to be recognized over a weighted-average period of 1.4 years.

(17) 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.

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; interest and other income, net; interest expense; loss on extinguishment and modification of debt; and provision for income taxes.

The table below sets forth Ciena’s segment profit (loss) and the reconciliation to net income (loss) for the periods presented (in thousands):

			Quarter Ended												Six Months Ended
			May 3,						April 27,						May 3,						April 27,
			2025						2024						2025						2024
Segment profit (loss):
Networking Platforms			$	133,712					$	96,566					$	300,791					$	280,341
Platform Software and Services			50,423						54,037						113,548						112,041
Blue Planet Automation Software and Services			4,291						(7,763)						8,867						(14,832)
Global Services			49,544						50,441						93,922						95,424
Total segment profit			237,970						193,281						517,128						472,974
Less: Non-performance operating expenses
Selling and marketing			139,683						124,071						276,187						252,229
General and administrative			56,952						49,573						110,854						104,256
Significant asset impairments and restructuring costs			1,948						15,655						3,492						20,626
Amortization of intangible assets			6,545						7,947						13,090						15,199
Add: Other non-performance financial items
Interest and other income, net			7,871						11,797						19,449						22,447
Interest expense			(21,697)						(23,861)						(44,615)						(47,637)
Loss on extinguishment and modification of debt			—						—						(729)						—
Less: Provision for income taxes			10,047						820						34,069						22,776
Net income (loss)			$	8,969					$	(16,849)					$	53,541					$	32,698

Entity-Wide Reporting

Ciena's long-lived assets, including equipment, building, furniture and fixtures, operating 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 May 3, 2025, equipment, building, furniture and fixtures, net, totaled $349.3 million, and operating ROU assets totaled $38.7 million both of which support asset groups within Ciena’s four operating segments and unallocated selling and general and administrative activities. As of May 3, 2025, finite-lived intangible assets, goodwill, and maintenance spares are assigned to asset groups within the following segments (in thousands):

			May 3, 2025
			Networking Platforms						Platform Software and Services						Blue Planet Automation Software and Services						Global Services						Total
Other intangible assets, net			$	144,673					—						2,786						—						$	147,459
Goodwill			$	199,565					156,191						89,049						—						$	444,805
Maintenance spares, net			$	—					—						—						88,507						$	88,507

The following table represents Ciena’s geographic distribution of equipment, building, furniture and fixtures, net and operating ROU assets, specifically identifying any country that accounts for at least 10% of the total of these assets. Assets attributable to geographic regions not identified 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):

			May 3, 2025						November 2, 2024
Canada			$	296,820					$	283,760
United States			45,447						49,195
Other International			45,737						32,184
Total			$	388,004					$	365,139

(18) COMMITMENTS AND CONTINGENCIES

Tax Contingencies

Ciena is subject to various tax contingencies arising in the ordinary course of business. Ciena does not expect that the ultimate settlement of these contingencies will have a material effect on its 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 Obligations

Ciena has certain advanced commitments for supply of certain long lead time components. As of May 3, 2025, Ciena had $1.8 billion in outstanding purchase commitments to contract manufacturers and component suppliers for inventory. In certain instances, Ciena is permitted to cancel, reschedule or adjust these commitments. Consequently, only a portion of this amount relates to firm, non-cancelable and unconditional obligations.

(19) SUBSEQUENT EVENTS

Stock Repurchase Program

From the end of the second quarter of fiscal 2025 through May 30, 2025, Ciena repurchased 318,958 shares of its common stock for an aggregate purchase price of $25.1 million at an average price of $78.63 per share, inclusive of repurchases pending settlement under its current stock repurchase program. As of May 30, 2025, Ciena has an aggregate of $811.5 million of authorized funds remaining under this repurchase program.