Company Quick10K Filing
Quick10K
Ciena
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$35.22 156 $5,490
10-Q 2019-04-30 Quarter: 2019-04-30
10-Q 2019-01-31 Quarter: 2019-01-31
10-K 2018-10-31 Annual: 2018-10-31
10-Q 2018-07-31 Quarter: 2018-07-31
10-Q 2018-04-30 Quarter: 2018-04-30
10-Q 2018-01-31 Quarter: 2018-01-31
10-K 2017-10-31 Annual: 2017-10-31
10-Q 2017-07-31 Quarter: 2017-07-31
10-Q 2017-04-30 Quarter: 2017-04-30
10-Q 2017-01-31 Quarter: 2017-01-31
10-K 2016-10-31 Annual: 2016-10-31
10-Q 2016-07-31 Quarter: 2016-07-31
10-Q 2016-04-30 Quarter: 2016-04-30
10-Q 2016-01-31 Quarter: 2016-01-31
10-K 2015-10-31 Annual: 2015-10-31
10-Q 2015-08-01 Quarter: 2015-08-01
10-Q 2015-05-02 Quarter: 2015-05-02
10-Q 2015-01-31 Quarter: 2015-01-31
10-K 2014-11-01 Annual: 2014-11-01
10-Q 2014-07-31 Quarter: 2014-07-31
10-Q 2014-04-30 Quarter: 2014-04-30
10-Q 2014-01-31 Quarter: 2014-01-31
8-K 2019-06-06 Earnings, Exhibits
8-K 2019-03-05 Earnings, Exhibits
8-K 2018-12-13 Earnings, Other Events, Exhibits
8-K 2018-10-18 Officers, Exhibits
8-K 2018-09-28 Enter Agreement, Off-BS Arrangement, Other Events, Exhibits
8-K 2018-09-20 Other Events, Exhibits
8-K 2018-09-05 Other Events, Exhibits
8-K 2018-08-30 Earnings, Exhibits
8-K 2018-06-13 Officers
8-K 2018-05-31 Earnings, Other Events, Exhibits
8-K 2018-04-12 Other Events, Exhibits
8-K 2018-04-03 Shareholder Vote
8-K 2018-03-06 Earnings, Exhibits
GE General Electric 87,560
IQ iQIYI 15,640
COMM Commscope Holding Company 3,650
MEDP Medpace Holdings 2,020
MNR Monmouth Real Estate Investment 1,300
FOR Forestar Group 832
SMIT Schmitt Industries 9
FWDR Fairwind Energy 0
ANCB Anchor Bancorp 0
ADVV Adveco Group 0
CIEN 2019-04-30
Part I - Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-10.1 ex101joinderagreebpsi.htm
EX-10.2 ex102-joinderagreecci.htm
EX-10.3 ex103-cienaxguarantysu.htm
EX-10.4 ex104-cienaxguarantysu.htm
EX-31.1 ex311certofceo6-12x19.htm
EX-31.2 ex312certofcfo6-12x19.htm
EX-32.1 ex321certofceosection9.htm
EX-32.2 ex322certofcfosection9.htm

Ciena Earnings 2019-04-30

CIEN 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Document
P3Yfalse--10-31Q220190000936395YesfalseLarge Accelerated FilerCIENA CORPfalsefalse17400000180000000.010.0129000000029000000015431853115556670115431853115556670115851400.040.03750.03753500000000.010.0120000000200000000000 0000936395 2018-11-01 2019-04-30 0000936395 2019-06-07 0000936395 us-gaap:ProductMember 2017-11-01 2018-04-30 0000936395 2017-11-01 2018-04-30 0000936395 2019-02-01 2019-04-30 0000936395 2018-02-01 2018-04-30 0000936395 us-gaap:ProductMember 2018-02-01 2018-04-30 0000936395 us-gaap:ServiceMember 2018-11-01 2019-04-30 0000936395 us-gaap:ServiceMember 2018-02-01 2018-04-30 0000936395 us-gaap:ServiceMember 2017-11-01 2018-04-30 0000936395 us-gaap:ProductMember 2018-11-01 2019-04-30 0000936395 us-gaap:ServiceMember 2019-02-01 2019-04-30 0000936395 us-gaap:ProductMember 2019-02-01 2019-04-30 0000936395 us-gaap:InterestRateSwapMember 2017-11-01 2018-04-30 0000936395 us-gaap:InterestRateSwapMember 2019-02-01 2019-04-30 0000936395 us-gaap:InterestRateSwapMember 2018-02-01 2018-04-30 0000936395 us-gaap:ForeignExchangeForwardMember 2018-11-01 2019-04-30 0000936395 us-gaap:InterestRateSwapMember 2018-11-01 2019-04-30 0000936395 us-gaap:ForeignExchangeForwardMember 2017-11-01 2018-04-30 0000936395 us-gaap:ForeignExchangeForwardMember 2018-02-01 2018-04-30 0000936395 us-gaap:ForeignExchangeForwardMember 2019-02-01 2019-04-30 0000936395 2018-10-31 0000936395 2019-04-30 0000936395 2017-10-31 0000936395 2018-04-30 0000936395 us-gaap:AdditionalPaidInCapitalMember 2018-11-01 2019-04-30 0000936395 us-gaap:RetainedEarningsMember 2018-11-01 2019-04-30 0000936395 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-11-01 2019-04-30 0000936395 us-gaap:CommonStockMember 2018-11-01 2019-04-30 0000936395 us-gaap:AdditionalPaidInCapitalMember 2018-10-31 0000936395 us-gaap:AdditionalPaidInCapitalMember 2019-04-30 0000936395 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-30 0000936395 us-gaap:CommonStockMember 2018-10-31 0000936395 2018-11-01 0000936395 us-gaap:RetainedEarningsMember 2019-04-30 0000936395 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-10-31 0000936395 us-gaap:CommonStockMember 2019-04-30 0000936395 us-gaap:RetainedEarningsMember 2018-10-31 0000936395 us-gaap:RetainedEarningsMember 2018-11-01 0000936395 us-gaap:CommonStockMember 2017-11-01 2018-04-30 0000936395 us-gaap:CommonStockMember 2018-04-30 0000936395 us-gaap:RetainedEarningsMember 2017-11-01 0000936395 us-gaap:CommonStockMember 2017-10-31 0000936395 us-gaap:RetainedEarningsMember 2018-04-30 0000936395 us-gaap:AdditionalPaidInCapitalMember 2017-11-01 2018-04-30 0000936395 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-10-31 0000936395 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-11-01 2018-04-30 0000936395 us-gaap:AdditionalPaidInCapitalMember 2018-04-30 0000936395 us-gaap:RetainedEarningsMember 2017-10-31 0000936395 us-gaap:AdditionalPaidInCapitalMember 2017-10-31 0000936395 us-gaap:AdditionalPaidInCapitalMember 2017-11-01 0000936395 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-30 0000936395 2017-11-01 0000936395 us-gaap:RetainedEarningsMember 2017-11-01 2018-04-30 0000936395 us-gaap:AccountingStandardsUpdate201409Member us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2019-02-01 2019-04-30 0000936395 us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member 2019-02-01 2019-04-30 0000936395 us-gaap:AccountingStandardsUpdate201409Member us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-11-01 0000936395 us-gaap:AccountingStandardsUpdate201409Member us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-11-01 2019-04-30 0000936395 us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member 2018-11-01 2019-04-30 0000936395 cien:ProductsandServicesWithUnpaidInvoicesMember us-gaap:AccountingStandardsUpdate201409Member us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-11-01 0000936395 us-gaap:AccountingStandardsUpdate201409Member cien:CapitalizedContractAcquisitionCostsMember us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-11-01 0000936395 us-gaap:AccountingStandardsUpdate201409Member cien:UnbilledAccountsReceivableProductsMember us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-11-01 0000936395 us-gaap:AccountingStandardsUpdate201409Member cien:UnbilledAccountsReceivableInstallationServicesMember us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-11-01 0000936395 cien:MaintenanceServicesOtherThanMultipleElementSoftwareArrangementsMember us-gaap:AccountingStandardsUpdate201409Member us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-11-01 0000936395 cien:MultipleElementSoftwareArrangementsMember us-gaap:AccountingStandardsUpdate201409Member us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-11-01 0000936395 cien:ProductSalesOtherThanMultipleElementSoftwareArrangementsMember us-gaap:AccountingStandardsUpdate201409Member us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-11-01 0000936395 us-gaap:AccountingStandardsUpdate201409Member cien:PrepaidCostsofGoodsandServicesMember us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-11-01 0000936395 us-gaap:OperatingSegmentsMember cien:InstallationAndDeploymentMember cien:GlobalServicesMember 2019-02-01 2019-04-30 0000936395 us-gaap:TransferredOverTimeMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:ConvergedPacketOpticalMember cien:NetworkingPlatformsMember 2019-02-01 2019-04-30 0000936395 cien:MaintenanceSupportAndTrainingMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:SoftwareAndServicesMember us-gaap:TransferredOverTimeMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:NetworkingPlatformsMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:ConvergedPacketOpticalMember cien:GlobalServicesMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:MaintenanceSupportAndTrainingMember cien:SoftwareAndServicesMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:InstallationAndDeploymentMember cien:SoftwareAndServicesMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:PlatformSoftwareandServicesMember cien:NetworkingPlatformsMember 2019-02-01 2019-04-30 0000936395 cien:ConsultingAndNetworkDesignMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:GlobalServicesMember 2019-02-01 2019-04-30 0000936395 us-gaap:TransferredAtPointInTimeMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:NetworkingPlatformsMember us-gaap:TransferredOverTimeMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:SoftwareAndServicesMember us-gaap:TransferredAtPointInTimeMember 2019-02-01 2019-04-30 0000936395 cien:InstallationAndDeploymentMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:PacketNetworkingMember cien:GlobalServicesMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:MaintenanceSupportAndTrainingMember cien:NetworkingPlatformsMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:PlatformSoftwareandServicesMember cien:SoftwareAndServicesMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:SoftwareAndServicesMember 2019-02-01 2019-04-30 0000936395 cien:BluePlanetAutomationSoftwareandServicesMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:BluePlanetAutomationSoftwareandServicesMember cien:GlobalServicesMember 2019-02-01 2019-04-30 0000936395 cien:ConvergedPacketOpticalMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:PlatformSoftwareandServicesMember cien:GlobalServicesMember 2019-02-01 2019-04-30 0000936395 cien:PlatformSoftwareandServicesMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:MaintenanceSupportAndTrainingMember cien:GlobalServicesMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:PacketNetworkingMember cien:NetworkingPlatformsMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:GlobalServicesMember us-gaap:TransferredOverTimeMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:ConvergedPacketOpticalMember cien:SoftwareAndServicesMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:InstallationAndDeploymentMember cien:NetworkingPlatformsMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:PacketNetworkingMember cien:SoftwareAndServicesMember 2019-02-01 2019-04-30 0000936395 cien:PacketNetworkingMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:NetworkingPlatformsMember us-gaap:TransferredAtPointInTimeMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:BluePlanetAutomationSoftwareandServicesMember cien:NetworkingPlatformsMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:ConsultingAndNetworkDesignMember cien:GlobalServicesMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:ConsultingAndNetworkDesignMember cien:NetworkingPlatformsMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:GlobalServicesMember us-gaap:TransferredAtPointInTimeMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:ConsultingAndNetworkDesignMember cien:SoftwareAndServicesMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:BluePlanetAutomationSoftwareandServicesMember cien:SoftwareAndServicesMember 2019-02-01 2019-04-30 0000936395 us-gaap:EMEAMember 2019-02-01 2019-04-30 0000936395 cien:AsiaPacificandIndiaMember 2018-11-01 2019-04-30 0000936395 cien:CaribbeanandLatinAmericaMember 2018-11-01 2019-04-30 0000936395 srt:NorthAmericaMember 2018-11-01 2019-04-30 0000936395 us-gaap:EMEAMember 2018-11-01 2019-04-30 0000936395 cien:AsiaPacificandIndiaMember 2019-02-01 2019-04-30 0000936395 cien:CaribbeanandLatinAmericaMember 2019-02-01 2019-04-30 0000936395 srt:NorthAmericaMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:PacketNetworkingMember cien:SoftwareAndServicesMember 2018-11-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:PacketNetworkingMember cien:GlobalServicesMember 2018-11-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:GlobalServicesMember 2018-11-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:SoftwareAndServicesMember 2018-11-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:InstallationAndDeploymentMember cien:GlobalServicesMember 2018-11-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:NetworkingPlatformsMember 2018-11-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:PlatformSoftwareandServicesMember cien:SoftwareAndServicesMember 2018-11-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:MaintenanceSupportAndTrainingMember cien:GlobalServicesMember 2018-11-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:InstallationAndDeploymentMember cien:SoftwareAndServicesMember 2018-11-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:ConvergedPacketOpticalMember cien:GlobalServicesMember 2018-11-01 2019-04-30 0000936395 us-gaap:TransferredAtPointInTimeMember 2018-11-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:GlobalServicesMember us-gaap:TransferredOverTimeMember 2018-11-01 2019-04-30 0000936395 cien:ConsultingAndNetworkDesignMember 2018-11-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:BluePlanetAutomationSoftwareandServicesMember cien:GlobalServicesMember 2018-11-01 2019-04-30 0000936395 cien:PacketNetworkingMember 2018-11-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:MaintenanceSupportAndTrainingMember cien:SoftwareAndServicesMember 2018-11-01 2019-04-30 0000936395 cien:ConvergedPacketOpticalMember 2018-11-01 2019-04-30 0000936395 cien:MaintenanceSupportAndTrainingMember 2018-11-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:SoftwareAndServicesMember us-gaap:TransferredAtPointInTimeMember 2018-11-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:ConvergedPacketOpticalMember cien:NetworkingPlatformsMember 2018-11-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:MaintenanceSupportAndTrainingMember cien:NetworkingPlatformsMember 2018-11-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:BluePlanetAutomationSoftwareandServicesMember cien:NetworkingPlatformsMember 2018-11-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:BluePlanetAutomationSoftwareandServicesMember cien:SoftwareAndServicesMember 2018-11-01 2019-04-30 0000936395 us-gaap:TransferredOverTimeMember 2018-11-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:ConsultingAndNetworkDesignMember cien:SoftwareAndServicesMember 2018-11-01 2019-04-30 0000936395 cien:PlatformSoftwareandServicesMember 2018-11-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:ConvergedPacketOpticalMember cien:SoftwareAndServicesMember 2018-11-01 2019-04-30 0000936395 cien:BluePlanetAutomationSoftwareandServicesMember 2018-11-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:SoftwareAndServicesMember us-gaap:TransferredOverTimeMember 2018-11-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:PlatformSoftwareandServicesMember cien:GlobalServicesMember 2018-11-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:PlatformSoftwareandServicesMember cien:NetworkingPlatformsMember 2018-11-01 2019-04-30 0000936395 cien:InstallationAndDeploymentMember 2018-11-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:InstallationAndDeploymentMember cien:NetworkingPlatformsMember 2018-11-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:NetworkingPlatformsMember us-gaap:TransferredOverTimeMember 2018-11-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:ConsultingAndNetworkDesignMember cien:NetworkingPlatformsMember 2018-11-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:GlobalServicesMember us-gaap:TransferredAtPointInTimeMember 2018-11-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:NetworkingPlatformsMember us-gaap:TransferredAtPointInTimeMember 2018-11-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:PacketNetworkingMember cien:NetworkingPlatformsMember 2018-11-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:ConsultingAndNetworkDesignMember cien:GlobalServicesMember 2018-11-01 2019-04-30 0000936395 cien:CapitalizedContractAcquisitionCostsMember 2019-04-30 0000936395 cien:CapitalizedContractAcquisitionCostsMember 2018-11-01 2019-04-30 0000936395 cien:CapitalizedContractAcquisitionCostsMember 2018-10-31 0000936395 us-gaap:EmployeeSeveranceMember 2018-04-30 0000936395 us-gaap:EmployeeSeveranceMember 2017-10-31 0000936395 us-gaap:FacilityClosingMember 2017-10-31 0000936395 us-gaap:FacilityClosingMember 2017-11-01 2018-04-30 0000936395 us-gaap:FacilityClosingMember 2018-04-30 0000936395 us-gaap:EmployeeSeveranceMember 2017-11-01 2018-04-30 0000936395 us-gaap:EmployeeSeveranceMember 2018-11-01 2019-04-30 0000936395 us-gaap:FacilityClosingMember 2019-04-30 0000936395 us-gaap:EmployeeSeveranceMember 2019-04-30 0000936395 us-gaap:EmployeeSeveranceMember 2018-10-31 0000936395 us-gaap:FacilityClosingMember 2018-10-31 0000936395 us-gaap:FacilityClosingMember 2018-11-01 2019-04-30 0000936395 2017-11-01 2018-10-31 0000936395 us-gaap:USTreasuryAndGovernmentMember us-gaap:ShortTermInvestmentsMember 2019-04-30 0000936395 us-gaap:USTreasuryAndGovernmentMember 2019-04-30 0000936395 us-gaap:CommercialPaperMember us-gaap:ShortTermInvestmentsMember 2018-10-31 0000936395 us-gaap:USTreasuryAndGovernmentMember us-gaap:ShortTermInvestmentsMember 2018-10-31 0000936395 us-gaap:USTreasuryAndGovernmentMember 2018-10-31 0000936395 us-gaap:USTreasuryAndGovernmentMember us-gaap:OtherLongTermInvestmentsMember 2018-10-31 0000936395 us-gaap:CommercialPaperMember 2018-10-31 0000936395 us-gaap:ForeignExchangeForwardMember us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 us-gaap:InterestRateSwapMember us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 cien:OtherLongTermLiabilitiesMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 us-gaap:AccruedLiabilitiesMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 cien:OtherLongTermAssetMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 us-gaap:ShortTermInvestmentsMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 cien:MarketableSecuritiesNoncurrentMember us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 us-gaap:CashAndCashEquivalentsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 cien:EmbeddedDerivativeFairValueofEmbeddedDerivativeLiabilityMember us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 cien:OtherLongTermLiabilitiesMember us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 cien:OtherLongTermAssetMember us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 cien:OtherLongTermLiabilitiesMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 us-gaap:CashAndCashEquivalentsMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 cien:EmbeddedDerivativeFairValueofEmbeddedDerivativeLiabilityMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 cien:OtherLongTermAssetMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 cien:EmbeddedDerivativeFairValueofEmbeddedDerivativeLiabilityMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 us-gaap:AccruedLiabilitiesMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 us-gaap:ShortTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 cien:MarketableSecuritiesNoncurrentMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 us-gaap:ShortTermInvestmentsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 cien:MarketableSecuritiesNoncurrentMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 cien:MarketableSecuritiesNoncurrentMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 us-gaap:CashAndCashEquivalentsMember us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 us-gaap:AccruedLiabilitiesMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 cien:OtherLongTermLiabilitiesMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 cien:OtherLongTermAssetMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 us-gaap:AccruedLiabilitiesMember us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 us-gaap:CashAndCashEquivalentsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 cien:EmbeddedDerivativeFairValueofEmbeddedDerivativeLiabilityMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 us-gaap:ShortTermInvestmentsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 us-gaap:ForeignExchangeForwardMember us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 us-gaap:InterestRateSwapMember us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000936395 cien:OtherLongTermLiabilitiesMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 us-gaap:CashAndCashEquivalentsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 cien:OtherLongTermLiabilitiesMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 us-gaap:CashAndCashEquivalentsMember us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 us-gaap:ShortTermInvestmentsMember us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 us-gaap:AccruedLiabilitiesMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 us-gaap:CashAndCashEquivalentsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 us-gaap:ShortTermInvestmentsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 us-gaap:ShortTermInvestmentsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 cien:OtherLongTermLiabilitiesMember us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 cien:OtherLongTermLiabilitiesMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 us-gaap:AccruedLiabilitiesMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 us-gaap:CashAndCashEquivalentsMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 us-gaap:ShortTermInvestmentsMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 us-gaap:AccruedLiabilitiesMember us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 us-gaap:AccruedLiabilitiesMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-04-30 0000936395 cien:DonRiverMember 2018-08-01 2018-10-31 0000936395 cien:UnbilledAccountsReceivablesMember 2018-10-31 0000936395 cien:UnbilledAccountsReceivablesMember 2019-04-30 0000936395 cien:NewNotesThreePointSevenFivePercentConvertibleSeniorNotesDue2018Member us-gaap:ConvertibleNotesPayableMember 2018-08-30 0000936395 cien:NewNotesThreePointSevenFivePercentConvertibleSeniorNotesDue2018Member us-gaap:ConvertibleNotesPayableMember 2018-11-15 2018-11-15 0000936395 us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-10-31 0000936395 cien:TermLoan2025Member us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:SecuredDebtMember 2019-04-30 0000936395 us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2018-11-01 2019-04-30 0000936395 us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-04-30 0000936395 us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-11-01 2019-04-30 0000936395 us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2019-04-30 0000936395 us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2018-10-31 0000936395 cien:TermLoan2025Member us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:SecuredDebtMember 2018-10-31 0000936395 us-gaap:InterestRateSwapMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-10-31 0000936395 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-11-01 2019-04-30 0000936395 us-gaap:ForeignExchangeForwardMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-10-31 0000936395 us-gaap:InterestRateSwapMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-11-01 2019-04-30 0000936395 us-gaap:ForeignExchangeForwardMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-11-01 2019-04-30 0000936395 us-gaap:AccumulatedTranslationAdjustmentMember 2018-11-01 2019-04-30 0000936395 us-gaap:InterestRateSwapMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-04-30 0000936395 us-gaap:ForeignExchangeForwardMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-04-30 0000936395 us-gaap:AccumulatedTranslationAdjustmentMember 2019-04-30 0000936395 us-gaap:AccumulatedTranslationAdjustmentMember 2018-10-31 0000936395 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-10-31 0000936395 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-04-30 0000936395 us-gaap:InterestRateSwapMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2017-11-01 2018-04-30 0000936395 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2017-11-01 2018-04-30 0000936395 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2017-10-31 0000936395 us-gaap:ForeignExchangeForwardMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2017-10-31 0000936395 us-gaap:ForeignExchangeForwardMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-04-30 0000936395 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-04-30 0000936395 us-gaap:ForeignExchangeForwardMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2017-11-01 2018-04-30 0000936395 us-gaap:InterestRateSwapMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-04-30 0000936395 us-gaap:InterestRateSwapMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2017-10-31 0000936395 us-gaap:AccumulatedTranslationAdjustmentMember 2017-10-31 0000936395 us-gaap:AccumulatedTranslationAdjustmentMember 2018-04-30 0000936395 us-gaap:AccumulatedTranslationAdjustmentMember 2017-11-01 2018-04-30 0000936395 cien:TermLoan2025Member us-gaap:SecuredDebtMember 2018-10-31 0000936395 cien:TermLoan2025Member us-gaap:SecuredDebtMember 2019-04-30 0000936395 cien:TermLoan2025Member us-gaap:SecuredDebtMember 2018-11-01 2019-04-30 0000936395 cien:NewNotesThreePointSevenFivePercentConvertibleSeniorNotesDue2018Member 2019-02-01 2019-04-30 0000936395 cien:NewNotesThreePointSevenFivePercentConvertibleSeniorNotesDue2018Member 2017-11-01 2018-04-30 0000936395 cien:NewNotesThreePointSevenFivePercentConvertibleSeniorNotesDue2018Member 2018-11-01 2019-04-30 0000936395 cien:NewNotesThreePointSevenFivePercentConvertibleSeniorNotesDue2018Member 2018-02-01 2018-04-30 0000936395 cien:SharesUnderlyingStockOptionsandRestrictedUnitsMember 2017-11-01 2018-04-30 0000936395 us-gaap:ConvertibleDebtSecuritiesMember cien:NewNotesThreePointSevenFivePercentConvertibleSeniorNotesDue2018Member 2019-02-01 2019-04-30 0000936395 cien:SharesUnderlyingStockOptionsandRestrictedUnitsMember 2018-11-01 2019-04-30 0000936395 us-gaap:ConvertibleDebtSecuritiesMember cien:FourPercentConvertibleSeniorNotesDue2020Member 2019-02-01 2019-04-30 0000936395 us-gaap:ConvertibleDebtSecuritiesMember cien:NewNotesThreePointSevenFivePercentConvertibleSeniorNotesDue2018Member 2018-02-01 2018-04-30 0000936395 us-gaap:ConvertibleDebtSecuritiesMember cien:ThreePointSevenFivePercentConvertibleSeniorNotesDue2018Member 2018-02-01 2018-04-30 0000936395 us-gaap:ConvertibleDebtSecuritiesMember cien:FourPercentConvertibleSeniorNotesDue2020Member 2018-02-01 2018-04-30 0000936395 us-gaap:ConvertibleDebtSecuritiesMember cien:FourPercentConvertibleSeniorNotesDue2020Member 2017-11-01 2018-04-30 0000936395 us-gaap:ConvertibleDebtSecuritiesMember cien:ThreePointSevenFivePercentConvertibleSeniorNotesDue2018Member 2018-11-01 2019-04-30 0000936395 us-gaap:ConvertibleDebtSecuritiesMember cien:ThreePointSevenFivePercentConvertibleSeniorNotesDue2018Member 2017-11-01 2018-04-30 0000936395 cien:SharesUnderlyingStockOptionsandRestrictedUnitsMember 2018-02-01 2018-04-30 0000936395 us-gaap:ConvertibleDebtSecuritiesMember cien:NewNotesThreePointSevenFivePercentConvertibleSeniorNotesDue2018Member 2018-11-01 2019-04-30 0000936395 cien:SharesUnderlyingStockOptionsandRestrictedUnitsMember 2019-02-01 2019-04-30 0000936395 us-gaap:ConvertibleDebtSecuritiesMember cien:FourPercentConvertibleSeniorNotesDue2020Member 2018-11-01 2019-04-30 0000936395 us-gaap:ConvertibleDebtSecuritiesMember cien:NewNotesThreePointSevenFivePercentConvertibleSeniorNotesDue2018Member 2017-11-01 2018-04-30 0000936395 us-gaap:ConvertibleDebtSecuritiesMember cien:ThreePointSevenFivePercentConvertibleSeniorNotesDue2018Member 2019-02-01 2019-04-30 0000936395 cien:ThreePointSevenFivePercentConvertibleSeniorNotesDue2018Member 2018-10-31 0000936395 cien:FourPercentConvertibleSeniorNotesDue2020Member 2018-10-31 0000936395 cien:NewNotesThreePointSevenFivePercentConvertibleSeniorNotesDue2018Member 2018-10-31 0000936395 2018-12-13 0000936395 us-gaap:RestrictedStockUnitsRSUMember 2019-04-30 0000936395 us-gaap:RestrictedStockUnitsRSUMember 2018-11-01 2019-04-30 0000936395 cien:ProductCostsMember 2018-02-01 2018-04-30 0000936395 us-gaap:SellingAndMarketingExpenseMember 2017-11-01 2018-04-30 0000936395 cien:ProductCostsMember 2017-11-01 2018-04-30 0000936395 cien:ServiceCostsMember 2019-02-01 2019-04-30 0000936395 us-gaap:ResearchAndDevelopmentExpenseMember 2018-11-01 2019-04-30 0000936395 us-gaap:GeneralAndAdministrativeExpenseMember 2019-02-01 2019-04-30 0000936395 us-gaap:GeneralAndAdministrativeExpenseMember 2018-11-01 2019-04-30 0000936395 us-gaap:ResearchAndDevelopmentExpenseMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingExpenseMember 2017-11-01 2018-04-30 0000936395 us-gaap:OperatingExpenseMember 2019-02-01 2019-04-30 0000936395 us-gaap:SellingAndMarketingExpenseMember 2018-02-01 2018-04-30 0000936395 us-gaap:CostOfSalesMember 2018-11-01 2019-04-30 0000936395 cien:ServiceCostsMember 2017-11-01 2018-04-30 0000936395 us-gaap:CostOfSalesMember 2017-11-01 2018-04-30 0000936395 us-gaap:OperatingExpenseMember 2018-11-01 2019-04-30 0000936395 us-gaap:CostOfSalesMember 2019-02-01 2019-04-30 0000936395 us-gaap:ResearchAndDevelopmentExpenseMember 2018-02-01 2018-04-30 0000936395 us-gaap:ResearchAndDevelopmentExpenseMember 2017-11-01 2018-04-30 0000936395 us-gaap:GeneralAndAdministrativeExpenseMember 2017-11-01 2018-04-30 0000936395 us-gaap:GeneralAndAdministrativeExpenseMember 2018-02-01 2018-04-30 0000936395 us-gaap:SellingAndMarketingExpenseMember 2019-02-01 2019-04-30 0000936395 cien:ServiceCostsMember 2018-11-01 2019-04-30 0000936395 cien:ProductCostsMember 2018-11-01 2019-04-30 0000936395 cien:ProductCostsMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingExpenseMember 2018-02-01 2018-04-30 0000936395 us-gaap:CostOfSalesMember 2018-02-01 2018-04-30 0000936395 us-gaap:SellingAndMarketingExpenseMember 2018-11-01 2019-04-30 0000936395 cien:ServiceCostsMember 2018-02-01 2018-04-30 0000936395 cien:VerizonMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2019-02-01 2019-04-30 0000936395 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2017-11-01 2018-04-30 0000936395 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2018-11-01 2019-04-30 0000936395 cien:AttMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2018-02-01 2018-04-30 0000936395 cien:AttMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2018-11-01 2019-04-30 0000936395 cien:AttMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2019-02-01 2019-04-30 0000936395 cien:VerizonMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2018-11-01 2019-04-30 0000936395 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2019-02-01 2019-04-30 0000936395 cien:AttMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2017-11-01 2018-04-30 0000936395 cien:WebscaleProviderMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2018-11-01 2019-04-30 0000936395 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2018-02-01 2018-04-30 0000936395 country:US 2018-02-01 2018-04-30 0000936395 country:US 2017-11-01 2018-04-30 0000936395 cien:NetworkingPlatformsMember 2019-04-30 0000936395 cien:SoftwareAndServicesMember 2019-04-30 0000936395 country:US 2018-11-01 2019-04-30 0000936395 country:US 2019-02-01 2019-04-30 0000936395 country:CA 2018-10-31 0000936395 cien:OtherInternationalMember 2019-04-30 0000936395 cien:OtherInternationalMember 2018-10-31 0000936395 country:CA 2019-04-30 0000936395 country:US 2019-04-30 0000936395 country:US 2018-10-31 0000936395 us-gaap:OperatingSegmentsMember cien:MaintenanceSupportAndTrainingMember cien:GlobalServicesMember 2017-11-01 2018-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:PacketNetworkingMember cien:NetworkingPlatformsMember 2017-11-01 2018-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:InstallationAndDeploymentMember cien:GlobalServicesMember 2017-11-01 2018-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:PlatformSoftwareandServicesMember cien:SoftwareAndServicesMember 2018-02-01 2018-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:ConsultingAndNetworkDesignMember cien:GlobalServicesMember 2017-11-01 2018-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:GlobalServicesMember 2017-11-01 2018-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:SoftwareAndServicesMember 2018-02-01 2018-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:NetworkingPlatformsMember 2018-02-01 2018-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:ConvergedPacketOpticalMember cien:NetworkingPlatformsMember 2017-11-01 2018-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:GlobalServicesMember 2018-02-01 2018-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:SoftwareAndServicesMember 2017-11-01 2018-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:MaintenanceSupportAndTrainingMember cien:GlobalServicesMember 2018-02-01 2018-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:ConvergedPacketOpticalMember cien:NetworkingPlatformsMember 2018-02-01 2018-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:BluePlanetAutomationSoftwareandServicesMember cien:SoftwareAndServicesMember 2017-11-01 2018-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:PlatformSoftwareandServicesMember cien:SoftwareAndServicesMember 2017-11-01 2018-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:NetworkingPlatformsMember 2017-11-01 2018-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:PacketNetworkingMember cien:NetworkingPlatformsMember 2018-02-01 2018-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:ConsultingAndNetworkDesignMember cien:GlobalServicesMember 2018-02-01 2018-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:InstallationAndDeploymentMember cien:GlobalServicesMember 2018-02-01 2018-04-30 0000936395 us-gaap:OperatingSegmentsMember cien:BluePlanetAutomationSoftwareandServicesMember cien:SoftwareAndServicesMember 2018-02-01 2018-04-30 0000936395 us-gaap:OperatingSegmentsMember 2019-02-01 2019-04-30 0000936395 us-gaap:OperatingSegmentsMember 2018-02-01 2018-04-30 0000936395 us-gaap:OperatingSegmentsMember 2017-11-01 2018-04-30 0000936395 us-gaap:OperatingSegmentsMember 2018-11-01 2019-04-30 0000936395 us-gaap:GrantMember 2018-11-01 2019-04-30 0000936395 cien:AssociationofSoutheastAsianNationsCountryMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2011-11-01 2017-10-31 0000936395 us-gaap:GrantMember 2017-02-20 2019-04-30 0000936395 us-gaap:SubsequentEventMember 2019-05-01 2019-06-07 0000936395 us-gaap:SubsequentEventMember 2019-06-07 xbrli:shares xbrli:pure iso4217:USD xbrli:shares iso4217:USD cien:employee iso4217:CAD cien:government_entity


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
(Mark one)
þ
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 30, 2019
OR
o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                    to                    
Commission File Number: 001-36250
Ciena Corporation
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of
incorporation or organization)
23-2725311
(I.R.S. Employer Identification No.)
 
 
7035 Ridge Road, Hanover, MD
(Address of principal executive offices)
21076
(Zip Code)
(410) 694-5700
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Name of each exchange on which registered
Common Stock, $0.01 par value
CIEN
New York Stock Exchange
 
 
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES þ NO o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). YES þ NO o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer þ
Accelerated filer o
Non-accelerated filer o


Smaller reporting company o
 
 
 
Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o    

Indicate by check mark whether the registrant is a shell company (as determined in Rule 12b-2 of the Exchange Act). YES o NO þ
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:
Class
 
Outstanding at June 7, 2019
common stock, $0.01 par value
 
155,088,524




CIENA CORPORATION
INDEX
FORM 10-Q
 
PAGE
NUMBER
 
 

2



PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

CIENA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

 
Quarter Ended April 30,
 
Six Months Ended April 30,
 
2019
 
2018
 
2019
 
2018
Revenue:
 
 
 
 
 
 
 
Products
$
710,688

 
$
604,226

 
$
1,353,220

 
$
1,129,835

Services
154,323

 
125,752

 
290,318

 
246,278

Total revenue
865,011

 
729,978

 
1,643,538

 
1,376,113

Cost of goods sold:
 
 
 
 
 
 
 
Products
411,050

 
372,568

 
791,492

 
685,688

Services
79,284

 
64,103

 
154,028

 
125,353

Total cost of goods sold
490,334

 
436,671

 
945,520

 
811,041

Gross profit
374,677

 
293,307

 
698,018

 
565,072

Operating expenses:
 
 
 
 
 
 
 
Research and development
137,969

 
116,924

 
266,602

 
235,448

Selling and marketing
103,502

 
97,359

 
201,615

 
185,874

General and administrative
42,154

 
38,976

 
81,397

 
77,382

Amortization of intangible assets
5,529

 
3,623

 
11,057

 
7,246

Significant asset impairments and restructuring costs
4,068

 
4,359

 
6,341

 
10,320

Acquisition and integration costs
1,135

 

 
2,743

 

Total operating expenses
294,357

 
261,241

 
569,755

 
516,270

Income from operations
80,320

 
32,066

 
128,263

 
48,802

Interest and other income (loss), net
(244
)
 
1,296

 
4,009

 
2,871

Interest expense
(9,471
)
 
(13,031
)
 
(18,912
)
 
(26,765
)
Income before income taxes
70,605

 
20,331

 
113,360

 
24,908

Provision for income taxes
17,867

 
6,475

 
27,006

 
484,415

Net income (loss)
$
52,738

 
$
13,856

 
$
86,354

 
$
(459,507
)
Basic net income (loss) per common share
$
0.34

 
$
0.10

 
$
0.55

 
$
(3.19
)
Diluted net income (loss) per potential common share
$
0.33

 
$
0.09

 
$
0.55

 
$
(3.19
)
Weighted average basic common shares outstanding
156,170

 
143,975

 
156,244

 
143,948

Weighted average dilutive potential common shares outstanding
158,289

 
147,973

 
158,211

 
143,948


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



3



CIENA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(in thousands)
(unaudited)

 
Quarter Ended April 30,
 
Six Months Ended April 30,
 
2019
 
2018
 
2019
 
2018
Net income (loss)
$
52,738

 
$
13,856

 
$
86,354

 
$
(459,507
)
Change in unrealized gain (loss) on available-for-sale securities, net of tax
112

 
(76
)
 
413

 
(337
)
Change in unrealized gain (loss) on foreign currency forward contracts, net of tax
(856
)
 
(2,537
)
 
704

 
(35
)
Change in unrealized gain (loss) on forward starting interest rate swap, net of tax
(2,826
)
 
2,299

 
(10,697
)
 
5,248

Change in cumulative translation adjustments
(4,996
)
 
(7,133
)
 
(3,846
)
 
1,069

Other comprehensive income (loss)
(8,566
)
 
(7,447
)
 
(13,426
)
 
5,945

Total comprehensive income (loss)
$
44,172

 
$
6,409

 
$
72,928

 
$
(453,562
)

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



4



CIENA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)

 
April 30,
2019
 
October 31,
2018
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
699,148

 
$
745,423

Short-term investments
119,327

 
148,981

Accounts receivable, net of allowance for doubtful accounts of $18.0 million and $17.4 million as of April 30, 2019 and October 31, 2018, respectively.
756,607

 
786,502

Inventories
359,417

 
262,751

Prepaid expenses and other
243,669

 
198,945

Total current assets
2,178,168

 
2,142,602

Long-term investments

 
58,970

Equipment, building, furniture and fixtures, net
282,022

 
292,067

Goodwill
297,711

 
297,968

Other intangible assets, net
129,971

 
148,225

Deferred tax asset, net
715,968

 
745,039

Other long-term assets
82,938

 
71,652

      Total assets
$
3,686,778

 
$
3,756,523

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
366,932

 
$
340,582

Accrued liabilities and other short-term obligations
291,417

 
340,075

Deferred revenue
104,030

 
111,134

Current portion of long-term debt
7,000

 
7,000

Debt conversion liability

 
164,212

Total current liabilities
769,379

 
963,003

Long-term deferred revenue
40,992

 
58,323

Other long-term obligations
129,779

 
119,413

Long-term debt, net
683,429

 
686,450

Total liabilities
$
1,623,579

 
$
1,827,189

Commitments and contingencies (Note 19)

 

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; 155,566,701
and 154,318,531 shares issued and outstanding
1,556

 
1,543

Additional paid-in capital
6,892,342

 
6,881,223

Accumulated other comprehensive loss
(19,206
)
 
(5,780
)
Accumulated deficit
(4,811,493
)
 
(4,947,652
)
Total stockholders’ equity
2,063,199

 
1,929,334

Total liabilities and stockholders’ equity
$
3,686,778

 
$
3,756,523



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


5



CIENA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
 
Six Months Ended April 30,
 
2019
 
2018
Cash flows provided by operating activities:
 
 
 
Net income (loss)
$
86,354

 
$
(459,507
)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
 
 
 
Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements
42,995

 
41,400

Share-based compensation costs
29,362

 
26,559

Amortization of intangible assets
17,778

 
11,824

Deferred taxes
18,293

 
481,401

Provision for inventory excess and obsolescence
10,245

 
14,977

Provision for warranty
9,276

 
10,565

Other
(2,259
)
 
12,645

Changes in assets and liabilities:
 
 
 
Accounts receivable
43,174

 
(28,055
)
Inventories
(109,554
)
 
20,420

Prepaid expenses and other
(33,241
)
 
2,623

Accounts payable, accruals and other obligations
(26,971
)
 
(55,986
)
Deferred revenue
4,560

 
(5,736
)
Net cash provided by operating activities
90,012

 
73,130

Cash flows provided by (used in) investing activities:
 
 
 
Payments for equipment, furniture, fixtures and intellectual property
(35,289
)
 
(31,946
)
Restricted cash

 
54

Purchase of available for sale securities
(97,897
)
 
(198,026
)
Proceeds from maturities of available for sale securities
90,000

 
200,000

Proceeds from sales of available for sale securities
98,263

 

Settlement of foreign currency forward contracts, net
(2,741
)
 
132

Purchase of equity investment
(2,667
)
 
(767
)
Net cash provided by (used in) investing activities
49,669

 
(30,553
)
Cash flows used in financing activities:
 
 
 
Payment of long-term debt
(3,500
)
 
(2,000
)
Payment of capital lease obligations
(1,679
)
 
(1,868
)
Payment for debt conversion liability
(111,268
)
 

Shares repurchased for tax withholdings on vesting of stock unit awards
(15,865
)
 

Repurchases of common stock - repurchase program
(65,103
)
 
(38,036
)
Proceeds from issuance of common stock
11,235

 
11,804

Net cash used in financing activities
(186,180
)
 
(30,100
)
Effect of exchange rate changes on cash and cash equivalents
224

 
(894
)
Net increase (decrease) in cash and cash equivalents
(46,275
)
 
11,583

Cash and cash equivalents at beginning of period
745,423

 
640,513

Cash and cash equivalents at end of period
$
699,148

 
$
652,096

Supplemental disclosure of cash flow information
 
 
 
Cash paid during the period for interest
$
19,978

 
$
21,843

Cash paid during the period for income taxes, net
$
9,258

 
$
15,136

Non-cash investing activities
 
 
 
Purchase of equipment in accounts payable
$
2,793

 
$
3,226

Non-cash financing activities
 
 
 
Repurchase of common stock in accrued liabilities from repurchase program
$
1,441

 
$
1,111

Conversion of debt conversion liability into 1,585,140 shares of common stock
$
52,944

 
$


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

6



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
Income (Loss)
 
Accumulated
Deficit
 
Total
Stockholders’
Equity
Balance at October 31, 2018
154,318,531

 
$
1,543

 
$
6,881,223

 
$
(5,780
)
 
$
(4,947,652
)
 
$
1,929,334

Effect of adoption of new accounting standard (Note 2)

 

 

 

 
49,805

 
49,805

Net income

 

 

 

 
86,354

 
86,354

Other comprehensive loss

 

 

 
(13,426
)
 

 
(13,426
)
Repurchase of common stock - repurchase program
(1,752,525
)
 
(17
)
 
(66,527
)
 

 

 
(66,544
)
Issuance of shares from employee equity plans
1,875,159

 
19

 
11,216

 

 

 
11,235

Share-based compensation expense

 

 
29,362

 

 

 
29,362

Settlement of debt conversion liability
1,585,140

 
16

 
52,928

 

 

 
52,944

Shares repurchased for tax withholdings on vesting of stock unit awards
(459,604
)
 
(5
)
 
(15,860
)
 

 

 
(15,865
)
Balance at April 30, 2019
155,566,701

 
$
1,556

 
$
6,892,342

 
$
(19,206
)
 
$
(4,811,493
)
 
$
2,063,199


 
Common Stock
Shares
 
Par Value
 
Additional
Paid-in-Capital
 
Accumulated Other
Comprehensive
Income (Loss)
 
Accumulated
Deficit
 
Total
Stockholders’
Equity
Balance at October 31, 2017
143,043,227

 
$
1,430

 
$
6,810,182

 
$
(11,017
)
 
$
(4,664,253
)
 
$
2,136,342

Effect of adoption of new accounting standards

 

 
832

 

 
61,291

 
62,123

Net loss

 

 

 

 
(459,507
)
 
(459,507
)
Other comprehensive income

 

 

 
5,945

 

 
5,945

Repurchase of common stock
(1,627,233
)
 
(16
)
 
(39,131
)
 

 

 
(39,147
)
Issuance of shares from employee equity plans
2,011,982

 
20

 
11,784

 

 

 
11,804

Share-based compensation expense

 

 
26,559

 

 

 
26,559

Balance at April 30, 2018
143,427,976

 
$
1,434

 
$
6,810,226

 
$
(5,072
)
 
$
(5,062,469
)
 
$
1,744,119


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

7



CIENA CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

(1)
 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”). 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 accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The Condensed Consolidated Balance Sheet as of October 31, 2018 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 31, 2018.
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 2019 is a 52-week fiscal year. Fiscal 2018 was a 53-week fiscal year with the additional week occurring in the fourth quarter. For purposes of financial statement presentation, each fiscal year is described as having ended on October 31, and the fiscal quarters are described as having ended on January 31, April 30 and July 31 of each fiscal year.

(2)
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 Ciena’s annual report on Form 10-K for the fiscal year ended October 31, 2018.

Newly Issued Accounting Standards - Effective

Revenue Recognition

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, a new accounting standard related to revenue recognition. ASC 606 supersedes nearly all U.S. GAAP standards on revenue recognition and eliminates industry-specific guidance. The underlying principle of ASC 606 is to recognize revenue when a customer obtains control of the promised products or services at an amount that reflects the consideration that is expected to be received in exchange for those products or services. ASC 606 also requires additional disclosures regarding the nature, amount, timing, and uncertainty of revenues and cash flows related to contracts with customers.

ASC 606 allows two methods of adoption: (i) retrospectively to each prior period presented (“full retrospective method”), or (ii) retrospectively with the cumulative effect recognized in retained earnings as of the date of adoption (“modified retrospective method”). Effective upon the start of its first quarter of fiscal 2019, Ciena adopted ASC 606 using the modified retrospective method and accordingly recognized the cumulative effect in accumulated deficit for those contracts that were not completed as of October 31, 2018. Accordingly, results for the reporting periods after October 31, 2018 are presented under ASC 606, while prior periods have not been adjusted and continue to be reported in accordance with Ciena’s historical revenue recognition practices. Refer to Opening Balance Adjustments below for the impact of ASC 606 adoption on Ciena’s Condensed Consolidated Financial Statements. In connection with its adoption of ASC 606, Ciena has implemented new accounting policies and processes, and incorporated such into its existing internal control environment as necessary to support the requirements of ASC 606.

Revenue Recognition Timing Differences

The adoption of ASC 606 requires Ciena to recognize revenue when the customer obtains control of promised products or services in an amount that reflects the consideration that Ciena would expect to receive in exchange for those products or services. Under the prior revenue standard, the timing of revenue recognition for delivered products or services was limited to

8



such amount not contingent upon future delivery of products or service or future performance obligations, or subject to customer-specified return or privileges. In the case of multiple element software arrangements for which vendor-specific objective evidence (“VSOE”) of undelivered maintenance did not exist, under the prior revenue standard, Ciena recognized revenue for the entire arrangement over the maintenance term. The adoption of ASC 606 requires Ciena to determine the stand-alone selling price for each of the software and software-related deliverables of such multiple element arrangements at contract inception. Consequently, under ASC 606, certain software deliverables will be recognized at a point in time rather than over a period of time. In addition, under ASC 606, certain installation and deployment, and consulting and network design services, will be recognized over a period of time rather than at a point in time.

Revenue Recognition Policy Under ASC 606

Ciena recognizes revenue when control of the promised products or services is transferred to its customer, in an amount that reflects the consideration that Ciena expects to be entitled to in exchange for those products or services.

Ciena determines revenue recognition by applying the following five-step approach:

identification of the contract, or contracts, with a customer;
identification of the performance obligations in the contract;
determination of the transaction price;
allocation of the transaction price to the performance obligations in the contract; and
recognition of revenue when, or as, Ciena satisfies a performance obligation.

Generally, Ciena makes sales pursuant to purchase orders placed by customers under framework agreements that govern the general commercial terms and conditions of the sale of Ciena’s products and services. These purchase orders under framework agreements are used to determine the identification of the contract or contracts with this customer. Purchase orders typically include the description, quantity, and price of each product or service purchased. Purchase orders may include one-line bundled pricing for both products and services. Accordingly, purchase orders can include various combinations of products and services that are generally distinct and accounted for as separate performance obligations. Ciena evaluates each promised product and service offering to determine whether it represents a distinct performance obligation. In doing so, Ciena considers, among other things, customary business practices, whether the customer can benefit from the product or service on its own or together with other resources that are readily available, and whether Ciena’s commitment to transfer the product or service to the customer is separately identifiable from other obligations in the purchase order. For transactions where Ciena delivers the product or services, Ciena is typically the principal and records revenue and costs of goods sold on a gross basis.

Purchase orders are invoiced based upon the terms set forth either in the purchase order or the framework agreement, as applicable. Generally, sales of products and software licenses are invoiced upon shipment or delivery. Maintenance and software subscription services are invoiced quarterly or annually in advance of the service term. Ciena’s other service offerings are generally invoiced upon completion of the service. Payment terms and cash received typically range from 30 to 90 days from the invoicing date. Historically, Ciena has not provided any material financing arrangements to its customers. As a practical expedient, Ciena does not adjust the amount of consideration it will receive for the effects of a significant financing component as it expects, at contract inception, that the period between Ciena transfer of the products or services to the customer, and customer payment for the products or services will be one year or less. Shipping and handling fees invoiced to customers are included in revenue, with the associated expense included in product cost of goods sold. Ciena records revenue net of any associated sales taxes.

Ciena recognizes revenue upon the transfer of control of promised products or services to a customer. Transfer of control occurs once the customer has the contractual right to use the product, generally upon shipment or delivery to the customer. Transfer of control can also occur over time for services such as software subscription, maintenance, installation, and various professional services as the customer receives the benefit over the contract term.

Significant Judgments

Revenue is allocated among performance obligations based on standalone selling price (“SSP”). SSP reflects the price at which Ciena would expect to sell that product or service on a stand-alone basis at contract inception and that Ciena would expect to be entitled to receive for the promised products or services. SSP is estimated for each distinct performance obligation and judgment may be required in its determination. The best evidence of SSP is the observable price of a product or service when Ciena sells the products separately in similar circumstances and to similar customers. In instances where SSP is not directly observable, Ciena determines SSP using information that may include market conditions and other observable inputs.

9




Ciena applies judgment in determining the transaction price, as Ciena may be required to estimate variable consideration when determining the amount of revenue to recognize. Variable consideration can include various rebate, cooperative marketing, and other incentive programs that Ciena offers to its distributors, partners and customers. When determining the amount of revenue to recognize, Ciena estimates the expected usage of these programs, applying the expected value or most likely estimate and updates the estimate at each reporting period as actual utilization data becomes available. Ciena also considers any customer right of return and any actual or potential payment of liquidated damages, contractual or similar penalties, or other claims for performance failures or delays in determining the transaction price, where applicable.

When transfer of control is judged to be over time for installation and professional service arrangements, Ciena applies the input method to determine the amount of revenue to be recognized in a given period. Utilizing the input method, Ciena recognizes revenue based on the ratio of actual costs incurred to date to the total estimated costs expected to be incurred. Revenue for software subscription and maintenance is recognized ratably over the period during which the services are performed.

Capitalized Contract Acquisition Costs

Ciena has considered the impact of the guidance in ASC 340-40, Other Assets and Deferred Costs; Contracts with Customers, and the interpretations of the FASB Transition Resource Group for Revenue Recognition (“TRG”) with respect to capitalization and amortization of incremental costs of obtaining a contract. In conjunction with this interpretation, Ciena considers each customer purchase in combination with the corresponding framework agreement, if applicable, as a contract. Ciena has elected to implement the practical expedient, which allows for incremental costs to be recognized as an expense when incurred if the period of the asset recognition is one year or less. If the period of the asset recognition is greater than one year, Ciena amortizes these costs over the period of performance. Ciena considers sales commissions incurred upon receipt of purchase orders placed by customers as incremental costs to obtain such purchase orders. The practical expedient method is applied to the purchase order as a whole and thus the capitalized costs of obtaining a purchase order is applied even if the purchase order contains more than one performance obligation. In cases where a purchase order includes various distinct products or services with both short-term (one year or less) and long-term (more than a year) performance periods, the cost of commissions incurred for the total value of the purchase order is capitalized and subsequently amortized as each performance obligation is recognized.

For the additional disclosures required as part of ASC 606, see Note 3 below.

Impact of ASC 606 Adoption

The following table summarizes the impact of adopting ASC 606 on Ciena’s Condensed Consolidated Statements of Operations (in millions):
 
 
Quarter Ended April 30, 2019
 
 
As Reported
 
Adjustments
 
Balances without adoption of ASC 606
 
 
 
 
 
 
 
Total revenue
 
$
865,011

 
$
(14,219
)
 
$
850,792

Total cost of goods sold
 
$
490,334

 
$
(13,436
)
 
$
476,898

Net income
 
$
52,738

 
$
(467
)
 
$
52,271

Diluted net income per potential common share
 
$
0.33

 
$

 
$
0.33


 
 
Six Months Ended April 30, 2019
 
 
As Reported
 
Adjustments
 
Balances without adoption of ASC 606
 
 
 
 
 
 
 
Total revenue
 
$
1,643,538

 
$
(25,119
)
 
$
1,618,419

Total cost of goods sold
 
$
945,520

 
$
(22,565
)
 
$
922,955

Net income
 
$
86,354

 
$
(862
)
 
$
85,492

Diluted net income per potential common share
 
$
0.55

 
$
(0.01
)
 
$
0.54




10



The increase in revenue from adoption of ASC 606 was primarily the result of installation and deployment services, where revenue was recognized over a period of time rather than at a point in time under the prior revenue recognition standard. The adoption of ASC 606 did not have a material impact to Ciena’s Condensed Consolidated Balance Sheets or any impact on net cash provided by operating activities as of April 30, 2019. See “Revenue Recognition Timing Differences” above. For additional information regarding ASC 606, see Note 3 below.

11




Opening Balance Adjustments

The following table summarizes the cumulative effect of the changes made to Ciena’s Condensed Consolidated Balance Sheets in connection with the adoption of ASC 606 (in millions):
 
 
Balance at October 31, 2018
 
New Revenue Recognition Standard
 
 
Adjusted Balance at November 1, 2018
ASSETS:
 
 
 
 
 
 
 
Accounts receivable, net
 
$
786,502

 
$
12,509

(1) 
 
$
799,011

Inventories
 
$
262,751

 
(2,486
)
(2) 
 
$
260,265

Prepaid expenses and other
 
$
198,945

 
21,470

(3) 
 
$
220,415

Deferred tax asset, net
 
$
745,039

 
(14,439
)
(4) 
 
$
730,600

Other long-term assets
 
$
71,652

 
3,998

(5) 
 
$
75,650

 
 
 
 
 
 
 
 
Total assets
 
$
3,756,523

 
$
21,052

 
 
$
3,777,575

 
 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY:
 
 
 
 
 
 
 
Deferred revenue
 
$
111,134

 
$
(14,403
)
(6) 
 
$
96,731

Long-term deferred revenue
 
$
58,323

 
(14,350
)
(7) 
 
$
43,973

Accumulated deficit
 
$
(4,947,652
)
 
49,805

(8) 
 
$
(4,897,847
)
 
 
 
 
 
 
 
 
Total liabilities and stockholders equity
 
$
3,756,523

 
$
21,052

 
 
$
3,777,575


(1)
Unpaid accounts receivable and related deferred revenue related to rights and obligations in a contract are interdependent and therefore recorded net within Ciena’s balance sheet. This represents an increase of $12.5 million from the reversal of certain net unpaid accounts receivable and related deferred revenue.
(2)
Represents a decrease of $2.5 million in deferred costs of goods sold due to change in revenue recognition for certain product sales.
(3)
Represents increases of $27.5 million in unbilled accounts receivable for change in recognizing revenue for installation services, $3.9 million in unbilled accounts receivable from change in recognizing revenue for certain product sales and $9.6 million related to short-term capitalized acquisition costs (e.g., commissions) and a decrease of $19.5 million related to prepaid cost of installation services.
(4)
Represents a decrease of $14.4 million in deferred tax asset, net, related to the unrecognized income tax effects of the net adjustments from the new revenue recognition standard.
(5)
Represents an increase of $4.0 million related to long-term capitalized acquisition costs (e.g., commissions).
(6)
Represents decreases of $23.6 million in deferred revenue, primarily due to a change in revenue recognition for certain multiple-element software arrangements and $1.7 million in deferred revenue, primarily due to a change in revenue recognition for certain product sales, and increases of $2.7 million for a change in revenue recognition from certain maintenance services and $8.2 million from the reversal of balance sheet netting for certain unpaid invoices included in accounts receivable, net and deferred revenue.
(7)
Represents a decrease of $18.6 million in long-term deferred revenue, primarily due to a change in revenue recognition for certain multiple-element software arrangements and an increase of $4.3 million from the reversal of balance sheet netting for certain unpaid invoices included in accounts receivable, net and long-term deferred revenue.
(8)
Accumulated deficit impact from the adjustments noted above.

Intangibles

In August 2018, the FASB issued ASU No. 2018-15 (“ASU 2018-15”), Intangibles - Goodwill and Other-Internal-Use Software, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software.

12



Ciena adopted ASU 2018-15 during the first quarter of fiscal 2019. The application of this accounting standard did not have a material impact on Ciena's Condensed Consolidated Financial Statements.

Newly Issued Accounting Standards - Not Yet Effective

In February 2016, the FASB issued ASU No. 2016-02 (“ASU 2016-02”), Leases, which requires an entity to recognize assets and liabilities on the balance sheet for the rights and obligations created by leased assets and to provide additional disclosures. Under current GAAP, the majority of Ciena’s leases for its properties are considered operating leases, and Ciena expects that the adoption of this ASU will require these leases to be recognized as assets and liabilities on Ciena’s balance sheet. ASU 2016-02 is effective for Ciena beginning in the first quarter of fiscal 2020. Ciena is continuing to evaluate other possible impacts of the adoption of ASU 2016-02 on its Consolidated Financial Statements and disclosures.

In June 2016, the FASB issued ASU No. 2016-13 (“ASU 2016-13”), Financial Instruments - Credit Losses, which requires measurement and recognition of expected credit losses for financial assets held based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. ASU 2016-13 is effective for Ciena beginning in the first quarter of fiscal 2021 and early adoption is permitted. Ciena is currently evaluating the impact of this accounting standard update on its Consolidated Financial Statements and disclosures.

In August 2018, the FASB issued ASU No. 2018-13 (“ASU 2018-13”), Fair Value Measurement (Topic 820): Disclosure Framework which modifies the disclosure requirements on fair value measurements. ASU 2018-13 is effective for Ciena beginning in the first quarter of fiscal year 2020 and early adoption is permitted. Ciena is currently evaluating this guidance to determine the impact on its disclosures.




13



(3)
REVENUE
Disaggregation of Revenue

Ciena’s disaggregated revenue represents similar groups that depict the nature, amount, and timing of revenue and cash flows for 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.

The tables below (in thousands) set forth Ciena’s disaggregated revenue for the respective period:
 
Quarter Ended April 30, 2019
 
Networking Platforms
 
Software and Software-Related Services
 
Global Services
 
Total
Product lines:
 
 
 
 
 
 
 
Converged Packet Optical
$
623,838

 
$

 
$

 
$
623,838

Packet Networking
73,138

 

 

 
73,138

Platform Software and Services

 
35,229

 

 
35,229

Blue Planet Automation Software and Services

 
12,473

 

 
12,473

Maintenance Support and Training

 

 
68,788

 
68,788

Installation and Deployment

 

 
41,322

 
41,322

Consulting and Network Design

 

 
10,223

 
10,223

Total revenue by product line
$
696,976

 
$
47,702

 
$
120,333

 
$
865,011

 
 
 
 
 
 
 
 
Timing of revenue recognition:
 
 
 
 
 
 
 
Products and services at a point in time
$
696,976

 
$
14,148

 
$
5,575

 
$
716,699

Services transferred over time

 
33,554

 
114,758

 
148,312

Total revenue by timing of revenue recognition
$
696,976

 
$
47,702

 
$
120,333

 
$
865,011

 
Six Months Ended April 30, 2019
 
Networking Platforms
 
Software and Software-Related Services
 
Global Services
 
Total
Product lines:
 
 
 
 
 
 
 
Converged Packet Optical
$
1,172,835

 
$

 
$

 
$
1,172,835

Packet Networking
144,707

 

 

 
144,707

Platform Software and Services

 
76,827

 

 
76,827

Blue Planet Automation Software and Services

 
27,447

 

 
27,447

Maintenance Support and Training

 

 
130,065

 
130,065

Installation and Deployment

 

 
71,944

 
71,944

Consulting and Network Design

 

 
19,713

 
19,713

Total revenue by product line
$
1,317,542

 
$
104,274

 
$
221,722

 
$
1,643,538

 
 
 
 
 
 
 
 
Timing of revenue recognition:
 
 
 
 
 
 
 
Products and services at a point in time
$
1,317,542

 
$
36,420

 
$
9,141

 
$
1,363,103

Services transferred over time

 
67,854

 
212,581

 
280,435

Total revenue by timing of revenue recognition
$
1,317,542

 
$
104,274

 
$
221,722

 
$
1,643,538



14



 
 
Quarter Ended April 30, 2019
 
Six Months Ended April 30, 2019
Geographic distribution:
 
 
 
 
North America