Upload
tom-jones
View
109
Download
1
Tags:
Embed Size (px)
Citation preview
Information presented and related comments of presenters may contain forward-looking
statements. Forward-looking statements include Ciena’s business outlook for future periods
as well as statements regarding Ciena’s expectations, beliefs, intentions or strategies
regarding the future and can be identified by forward-looking words such as “anticipate,”
“believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will,” and “would” or similar
words.
These forward looking statements, based on information, expectations, prospects,
forecasts and assumptions available to Ciena as of the date of this event, involve inherent
risk. Ciena’s actual results could differ materially from those stated, forecasted or implied,
due to a number of risks and uncertainties associated with Ciena’s business, operations
and markets, including those risk factors disclosed in Ciena’s Form 10-Q filed with
the SEC on March 7th, 2014.
All information, statements, and projections in this presentation and the related earnings call
speak only as of the date of this presentation and related earnings call. Ciena assumes no
obligation to update the information presented today, whether as a result of new information,
future events or otherwise.
In addition, this presentation includes historical, and may include prospective, non-GAAP
measures of Ciena’s gross margin, operating expense, operating profit, net income, and net
income per share. These measures are not intended to be a substitute for financial
information presented in accordance with GAAP. A reconciliation of non-GAAP measures
used in this presentation to Ciena’s GAAP results for the relevant period can be found in the
Appendix to this presentation.
HQ: Hanover, MD 4,680 employees 1,000+ customers 90+ countries
220+ customers
North America CALA EMEA APAC
660+ customers 60+ customers 90+ customers
Converged packet-optical transport, switching and service delivery platforms
managed and automated by intelligent software,
and supported by comprehensive service offerings
Market Share : Increasing
Cost Structure : Transforming
Revenue : Growing
Operating Leverage : Improving
0%
5%
10%
15%
20%
25%
2009 2010 2011 2012 2013
0%
5%
10%
15%
20%
25%
30%
2009 2010 2011 2012 2013
NEXT-GEN NETWORKING1
NORTH AMERICA
NEXT-GEN NETWORKING1
GLOBAL
1.Long-haul WDM + metro WDM + optical switching; Source: Dell’Oro Group, 4Q13 Optical Report
OPTIMIZING OUR SUPPLY CHAIN & PRODUCT COSTS
Build vs. buy on some components and subsystems
Leverage increased volume across a consolidated supply chain
Expand direct order fulfillment
IMPROVING BUSINESS EFFICIENCIES
Redesign “quote-to-cash” process
Sustain DSOs in the low-to-mid 70s
Growing revenue faster than operating expenses
BUSINESS
TRANSFORMATION COST
REDUCTIONS
-2%
1%
2%
6%
-3%
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
2010 2011 2012 2013
Profitable Growth & Achievement Of Operating Leverage Key Management Focus Areas
Key Drivers
Goal Is 30% - 35% Opex/Revenue – At Doorstep In 2H13
46% 43%
40% 39% 39% 39%
36%
(2%) (2%)
4% 2% 2%
5% 6%
-5%
5%
15%
25%
35%
45%
55%
-
200
400
600
800
1,000
1,200
2H10 1H11 2H11 1H12 2H12 1H13 2H13
Revenue OPEX OPEX (% Rev) Operating Margin %
OPEX, OPEX (% Rev), and Operating Margin % are non-GAAP
Solid Predictability Since 2H12 In Spite Of Revenue Variability
350
400
450
500
550
600
3Q
10
4Q
10
1Q
11
2Q
11
3Q
11
4Q
11
1Q
12
2Q
12
3Q
12
4Q
12
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
$M
M
Revenue Actuals: 1% from Guidance Midpoint
Low Guidance High Guidance Actual Revenue
Revenue Grow Faster Than The Market1
Adj. Gross Margin Low-mid 40s%
Adj. Operating Expense Low-mid 30s%
Adj. Operating Margin 7% - 10%
+5%
40.9%
39%
1.9%
FY 2012
+14%
42.8%
37%
5.6%
FY 2013
Revenue
Adj. Gross Margin
Adj. Operating Expense
Adj. Operating Margin
+ 2.1 pts
- 2 pts
+ 3.7 pts
*Industry Avg include ALU, Cisco, Ericsson, Juniper, ADVA, Infinera and Tellabs
Source: Companies financial statements
0.9
1
1.1
1.2
1.3
1.4
2H10 1H11 2H11 1H12 2H12 1H13 2H13
No
rmal
ize
d R
eve
nu
e
Ciena Industry Avg
0.8
0.9
1
1.1
1.2
1.3
2H10 1H11 2H11 1H12 2H12 1H13 2H13
No
rmal
ize
d G
ross
Mar
gin
Ciena Industry Avg
0
1
2
3
4
5
6
7
2H10 1H11 2H11 1H12 2H12 1H13 2H13
No
rmal
ize
d A
dju
ste
d O
pe
rati
ng
Mar
gin
Ciena Industry Avg
$540 to $570 million
Low 40s percent range, lower than Q1’14
$210 million range
1 Projections or outlook with respect to future operating results are only as of March 6, 2014, the date presented on the related earnings call. Ciena
assumes no obligation to update this information, whether as a result of new information, future events, or otherwise.