Ciena corp

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Transcript of Ciena corp

Page 1: Ciena corp
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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.

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HQ: Hanover, MD 4,680 employees 1,000+ customers 90+ countries

220+ customers

North America CALA EMEA APAC

660+ customers 60+ customers 90+ customers

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Converged packet-optical transport, switching and service delivery platforms

managed and automated by intelligent software,

and supported by comprehensive service offerings

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OPn

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Market Share : Increasing

Cost Structure : Transforming

Revenue : Growing

Operating Leverage : Improving

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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

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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

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-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

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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

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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

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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

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*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

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$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.

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