Price Graph
Price
Yield
These terms and conditions govern your use of the website alphaminr.com and its related services.
These Terms and Conditions (“Terms”) are a binding contract between you and Alphaminr, (“Alphaminr”, “we”, “us” and “service”). You must agree to and accept the Terms. These Terms include the provisions in this document as well as those in the Privacy Policy. These terms may be modified at any time.
Your subscription will be on a month to month basis and automatically renew every month. You may terminate your subscription at any time through your account.
We will provide you with advance notice of any change in fees.
You represent that you are of legal age to form a binding contract. You are responsible for any
activity associated with your account. The account can be logged in at only one computer at a
time.
The Services are intended for your own individual use. You shall only use the Services in a
manner that complies with all laws. You may not use any automated software, spider or system to
scrape data from Alphaminr.
Alphaminr is not a financial advisor and does not provide financial advice of any kind. The service is provided “As is”. The materials and information accessible through the Service are solely for informational purposes. While we strive to provide good information and data, we make no guarantee or warranty as to its accuracy.
TO THE EXTENT PERMITTED BY APPLICABLE LAW, UNDER NO CIRCUMSTANCES SHALL ALPHAMINR BE LIABLE TO YOU FOR DAMAGES OF ANY KIND, INCLUDING DAMAGES FOR INVESTMENT LOSSES, LOSS OF DATA, OR ACCURACY OF DATA, OR FOR ANY AMOUNT, IN THE AGGREGATE, IN EXCESS OF THE GREATER OF (1) FIFTY DOLLARS OR (2) THE AMOUNTS PAID BY YOU TO ALPHAMINR IN THE SIX MONTH PERIOD PRECEDING THIS APPLICABLE CLAIM. SOME STATES DO NOT ALLOW THE EXCLUSION OR LIMITATION OF INCIDENTAL OR CONSEQUENTIAL OR CERTAIN OTHER DAMAGES, SO THE ABOVE LIMITATION AND EXCLUSIONS MAY NOT APPLY TO YOU.
If any provision of these Terms is found to be invalid under any applicable law, such provision shall not affect the validity or enforceability of the remaining provisions herein.
This privacy policy describes how we (“Alphaminr”) collect, use, share and protect your personal information when we provide our service (“Service”). This Privacy Policy explains how information is collected about you either directly or indirectly. By using our service, you acknowledge the terms of this Privacy Notice. If you do not agree to the terms of this Privacy Policy, please do not use our Service. You should contact us if you have questions about it. We may modify this Privacy Policy periodically.
When you register for our Service, we collect information from you such as your name, email address and credit card information.
Like many other websites we use “cookies”, which are small text files that are stored on your computer or other device that record your preferences and actions, including how you use the website. You can set your browser or device to refuse all cookies or to alert you when a cookie is being sent. If you delete your cookies, if you opt-out from cookies, some Services may not function properly. We collect information when you use our Service. This includes which pages you visit.
We use Google Analytics and we use Stripe for payment processing. We will not share the information we collect with third parties for promotional purposes. We may share personal information with law enforcement as required or permitted by law.
|
þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
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)
|
|
Large accelerated filer
þ
|
Accelerated filer
o
|
Non-accelerated filer
o
(Do not check if a smaller reporting company)
|
Smaller reporting company
o
|
|
|
|
|
Emerging growth company
o
|
|
Class
|
|
Outstanding at August 31, 2018
|
|
common stock, $0.01 par value
|
|
142,601,249
|
|
|
PAGE
NUMBER
|
|
|
|
|
|
|
|
|
Quarter Ended July 31,
|
|
Nine Months Ended July 31,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Revenue:
|
|
|
|
|
|
|
|
||||||||
|
Products
|
$
|
691,758
|
|
|
$
|
610,742
|
|
|
$
|
1,821,593
|
|
|
$
|
1,702,365
|
|
|
Services
|
127,059
|
|
|
117,977
|
|
|
373,337
|
|
|
354,873
|
|
||||
|
Total revenue
|
818,817
|
|
|
728,719
|
|
|
2,194,930
|
|
|
2,057,238
|
|
||||
|
Cost of goods sold:
|
|
|
|
|
|
|
|
||||||||
|
Products
|
399,886
|
|
|
341,197
|
|
|
1,085,574
|
|
|
955,303
|
|
||||
|
Services
|
67,388
|
|
|
59,446
|
|
|
192,741
|
|
|
181,834
|
|
||||
|
Total cost of goods sold
|
467,274
|
|
|
400,643
|
|
|
1,278,315
|
|
|
1,137,137
|
|
||||
|
Gross profit
|
351,543
|
|
|
328,076
|
|
|
916,615
|
|
|
920,101
|
|
||||
|
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
|
Research and development
|
121,133
|
|
|
117,729
|
|
|
356,581
|
|
|
356,221
|
|
||||
|
Selling and marketing
|
95,395
|
|
|
86,739
|
|
|
281,269
|
|
|
260,292
|
|
||||
|
General and administrative
|
38,212
|
|
|
35,569
|
|
|
115,594
|
|
|
106,423
|
|
||||
|
Significant asset impairments and restructuring costs
|
6,359
|
|
|
2,203
|
|
|
16,679
|
|
|
8,874
|
|
||||
|
Amortization of intangible assets
|
3,837
|
|
|
3,837
|
|
|
11,083
|
|
|
29,368
|
|
||||
|
Acquisition and integration costs
|
1,333
|
|
|
—
|
|
|
1,333
|
|
|
—
|
|
||||
|
Total operating expenses
|
266,269
|
|
|
246,077
|
|
|
782,539
|
|
|
761,178
|
|
||||
|
Income from operations
|
85,274
|
|
|
81,999
|
|
|
134,076
|
|
|
158,923
|
|
||||
|
Interest and other income (loss), net
|
(1,543
|
)
|
|
(848
|
)
|
|
1,328
|
|
|
(3,396
|
)
|
||||
|
Interest expense
|
(13,611
|
)
|
|
(13,415
|
)
|
|
(40,376
|
)
|
|
(41,926
|
)
|
||||
|
Income before income taxes
|
70,120
|
|
|
67,736
|
|
|
95,028
|
|
|
113,601
|
|
||||
|
Provision for income taxes
|
19,280
|
|
|
7,726
|
|
|
503,695
|
|
|
11,704
|
|
||||
|
Net income (loss)
|
$
|
50,840
|
|
|
$
|
60,010
|
|
|
$
|
(408,667
|
)
|
|
$
|
101,897
|
|
|
Basic net income (loss) per common share
|
$
|
0.35
|
|
|
$
|
0.42
|
|
|
$
|
(2.84
|
)
|
|
$
|
0.72
|
|
|
Diluted net income (loss) per potential common share
|
$
|
0.34
|
|
|
$
|
0.39
|
|
|
$
|
(2.84
|
)
|
|
$
|
0.69
|
|
|
Weighted average basic common shares outstanding
|
143,400
|
|
|
142,464
|
|
|
143,766
|
|
|
141,631
|
|
||||
|
Weighted average dilutive potential common shares outstanding
|
159,998
|
|
|
172,112
|
|
|
143,766
|
|
|
164,431
|
|
||||
|
|
Quarter Ended July 31,
|
|
Nine Months Ended July 31,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Net income (loss)
|
$
|
50,840
|
|
|
$
|
60,010
|
|
|
$
|
(408,667
|
)
|
|
$
|
101,897
|
|
|
Change in unrealized gain (loss) on available-for-sale securities, net of tax
|
279
|
|
|
(6
|
)
|
|
(59
|
)
|
|
(533
|
)
|
||||
|
Change in unrealized gain (loss) on foreign currency forward contracts, net of tax
|
(1,032
|
)
|
|
2,380
|
|
|
(1,067
|
)
|
|
2,906
|
|
||||
|
Change in unrealized gain (loss) on forward starting interest rate swap, net of tax
|
350
|
|
|
(327
|
)
|
|
5,599
|
|
|
4,570
|
|
||||
|
Change in cumulative translation adjustments
|
(3,230
|
)
|
|
13,644
|
|
|
(2,161
|
)
|
|
11,891
|
|
||||
|
Other comprehensive income
|
(3,633
|
)
|
|
15,691
|
|
|
2,312
|
|
|
18,834
|
|
||||
|
Total comprehensive income (loss)
|
$
|
47,207
|
|
|
$
|
75,701
|
|
|
$
|
(406,355
|
)
|
|
$
|
120,731
|
|
|
|
July 31,
2018 |
|
October 31,
2017 |
||||
|
ASSETS
|
|
|
|
||||
|
Current assets:
|
|
|
|
||||
|
Cash and cash equivalents
|
$
|
726,214
|
|
|
$
|
640,513
|
|
|
Short-term investments
|
228,940
|
|
|
279,133
|
|
||
|
Accounts receivable, net of allowance for doubtful accounts of $17.7 million and $17.6 million as of July 31, 2018 and October 31, 2017, respectively.
|
728,940
|
|
|
622,183
|
|
||
|
Inventories
|
227,885
|
|
|
267,143
|
|
||
|
Prepaid expenses and other
|
192,497
|
|
|
197,339
|
|
||
|
Total current assets
|
2,104,476
|
|
|
2,006,311
|
|
||
|
Long-term investments
|
29,465
|
|
|
49,783
|
|
||
|
Equipment, building, furniture and fixtures, net
|
295,863
|
|
|
308,465
|
|
||
|
Goodwill
|
287,551
|
|
|
267,458
|
|
||
|
Other intangible assets, net
|
108,302
|
|
|
100,997
|
|
||
|
Deferred tax asset, net
|
724,087
|
|
|
1,155,104
|
|
||
|
Other long-term assets
|
72,951
|
|
|
63,593
|
|
||
|
Total assets
|
$
|
3,622,695
|
|
|
$
|
3,951,711
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
|
Current liabilities:
|
|
|
|
||||
|
Accounts payable
|
$
|
312,611
|
|
|
$
|
260,098
|
|
|
Accrued liabilities and other short-term obligations
|
297,988
|
|
|
322,934
|
|
||
|
Deferred revenue
|
104,170
|
|
|
102,418
|
|
||
|
Current portion of long-term debt
|
353,669
|
|
|
352,293
|
|
||
|
Total current liabilities
|
1,068,438
|
|
|
1,037,743
|
|
||
|
Long-term deferred revenue
|
79,914
|
|
|
82,589
|
|
||
|
Other long-term obligations
|
108,884
|
|
|
111,349
|
|
||
|
Long-term debt, net
|
586,505
|
|
|
583,688
|
|
||
|
Total liabilities
|
$
|
1,843,741
|
|
|
$
|
1,815,369
|
|
|
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; 143,050,180
and 143,043,227 shares issued and outstanding |
1,431
|
|
|
1,430
|
|
||
|
Additional paid-in capital
|
6,797,857
|
|
|
6,810,182
|
|
||
|
Accumulated other comprehensive income (loss)
|
(8,705
|
)
|
|
(11,017
|
)
|
||
|
Accumulated deficit
|
(5,011,629
|
)
|
|
(4,664,253
|
)
|
||
|
Total stockholders’ equity
|
1,778,954
|
|
|
2,136,342
|
|
||
|
Total liabilities and stockholders’ equity
|
$
|
3,622,695
|
|
|
$
|
3,951,711
|
|
|
|
Nine Months Ended July 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
Cash flows provided by operating activities:
|
|
|
|
||||
|
Net income (loss)
|
$
|
(408,667
|
)
|
|
$
|
101,897
|
|
|
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
|
63,104
|
|
|
55,873
|
|
||
|
Share-based compensation costs
|
38,896
|
|
|
36,843
|
|
||
|
Amortization of intangible assets
|
18,196
|
|
|
39,721
|
|
||
|
Deferred tax provision
|
491,863
|
|
|
—
|
|
||
|
Provision for inventory excess and obsolescence
|
19,942
|
|
|
28,727
|
|
||
|
Provision for warranty
|
15,715
|
|
|
5,188
|
|
||
|
Other
|
18,164
|
|
|
21,076
|
|
||
|
Changes in assets and liabilities:
|
|
|
|
||||
|
Accounts receivable
|
(112,696
|
)
|
|
(80,652
|
)
|
||
|
Inventories
|
17,751
|
|
|
(93,896
|
)
|
||
|
Prepaid expenses and other
|
(11,163
|
)
|
|
(26,450
|
)
|
||
|
Accounts payable, accruals and other obligations
|
14,840
|
|
|
(5,960
|
)
|
||
|
Deferred revenue
|
(4,710
|
)
|
|
13,978
|
|
||
|
Net cash provided by operating activities
|
161,235
|
|
|
96,345
|
|
||
|
Cash flows used in investing activities:
|
|
|
|
||||
|
Payments for equipment, furniture, fixtures and intellectual property
|
(50,386
|
)
|
|
(76,004
|
)
|
||
|
Purchase of available for sale securities
|
(217,715
|
)
|
|
(189,802
|
)
|
||
|
Proceeds from maturities of available for sale securities
|
290,000
|
|
|
260,003
|
|
||
|
Settlement of foreign currency forward contracts, net
|
4,759
|
|
|
(1,619
|
)
|
||
|
Acquisition of business, net of cash acquired
|
(40,412
|
)
|
|
—
|
|
||
|
Purchase of cost method investment
|
(1,433
|
)
|
|
—
|
|
||
|
Net cash used in investing activities
|
(15,187
|
)
|
|
(7,422
|
)
|
||
|
Cash flows used in financing activities:
|
|
|
|
||||
|
Payment of long-term debt
|
(3,000
|
)
|
|
(232,554
|
)
|
||
|
Payment for modification of term loans
|
—
|
|
|
(93,625
|
)
|
||
|
Payment of capital lease obligations
|
(2,811
|
)
|
|
(2,650
|
)
|
||
|
Repurchases of common stock-repurchase program
|
(73,512
|
)
|
|
—
|
|
||
|
Proceeds from issuance of common stock
|
22,735
|
|
|
20,395
|
|
||
|
Net cash used in financing activities
|
(56,588
|
)
|
|
(308,434
|
)
|
||
|
Effect of exchange rate changes on cash and cash equivalents
|
(3,759
|
)
|
|
1,436
|
|
||
|
Net increase (decrease) in cash and cash equivalents
|
85,701
|
|
|
(218,075
|
)
|
||
|
Cash and cash equivalents at beginning of period
|
640,513
|
|
|
777,615
|
|
||
|
Cash and cash equivalents at end of period
|
$
|
726,214
|
|
|
$
|
559,540
|
|
|
Supplemental disclosure of cash flow information
|
|
|
|
||||
|
Cash paid during the period for interest
|
$
|
31,561
|
|
|
$
|
33,861
|
|
|
Cash paid during the period for income taxes, net
|
$
|
20,099
|
|
|
$
|
26,793
|
|
|
Non-cash investing activities
|
|
|
|
||||
|
Purchase of equipment in accounts payable
|
$
|
5,677
|
|
|
$
|
6,012
|
|
|
Building subject to capital lease
|
$
|
—
|
|
|
$
|
50,370
|
|
|
Non-cash financing activities
|
|
|
|
||||
|
Repurchase of common stock in accrued liabilities from repurchase program
|
$
|
1,275
|
|
|
$
|
—
|
|
|
|
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
|
|
|
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(408,667
|
)
|
|
(408,667
|
)
|
|||||
|
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
2,312
|
|
|
—
|
|
|
2,312
|
|
|||||
|
Repurchase of common stock
|
(3,028,118
|
)
|
|
(30
|
)
|
|
(74,757
|
)
|
|
—
|
|
|
—
|
|
|
(74,787
|
)
|
|||||
|
Issuance of shares from employee equity plans
|
3,035,071
|
|
|
31
|
|
|
22,704
|
|
|
—
|
|
|
—
|
|
|
22,735
|
|
|||||
|
Share-based compensation expense
|
—
|
|
|
—
|
|
|
38,896
|
|
|
—
|
|
|
—
|
|
|
38,896
|
|
|||||
|
Effect of adoption of new accounting standard
|
—
|
|
|
—
|
|
|
832
|
|
|
—
|
|
|
61,291
|
|
|
62,123
|
|
|||||
|
Balance at July 31, 2018
|
143,050,180
|
|
|
$
|
1,431
|
|
|
$
|
6,797,857
|
|
|
$
|
(8,705
|
)
|
|
$
|
(5,011,629
|
)
|
|
$
|
1,778,954
|
|
|
|
Common Stock
Shares |
|
Par Value
|
|
Additional
Paid-in-Capital |
|
Accumulated Other
Comprehensive Income (Loss) |
|
Accumulated
Deficit |
|
Total
Stockholders’ Equity |
|||||||||||
|
Balance at October 31, 2016
|
139,767,627
|
|
|
$
|
1,398
|
|
|
$
|
6,715,478
|
|
|
$
|
(24,329
|
)
|
|
$
|
(5,926,206
|
)
|
|
$
|
766,341
|
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
101,897
|
|
|
101,897
|
|
|||||
|
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
18,834
|
|
|
—
|
|
|
18,834
|
|
|||||
|
Issuance of shares from employee equity plans
|
2,905,157
|
|
|
29
|
|
|
20,366
|
|
|
—
|
|
|
—
|
|
|
20,395
|
|
|||||
|
Share-based compensation expense
|
—
|
|
|
—
|
|
|
36,843
|
|
|
—
|
|
|
—
|
|
|
36,843
|
|
|||||
|
Balance at July 31, 2017
|
142,672,784
|
|
|
$
|
1,427
|
|
|
$
|
6,772,687
|
|
|
$
|
(5,495
|
)
|
|
$
|
(5,824,309
|
)
|
|
$
|
944,310
|
|
|
(1)
|
INTERIM FINANCIAL STATEMENTS
|
|
(2)
|
SIGNIFICANT ACCOUNTING POLICIES
|
|
|
Amount
|
||
|
Cash and cash equivalents
|
$
|
642
|
|
|
Accounts receivable
|
1,525
|
|
|
|
Prepaid expenses and other
|
450
|
|
|
|
Equipment, furniture and fixtures
|
31
|
|
|
|
Goodwill
|
20,304
|
|
|
|
Customer relationships and contracts
|
2,200
|
|
|
|
Developed technology
|
21,900
|
|
|
|
Accounts payable
|
(165
|
)
|
|
|
Accrued liabilities
|
(657
|
)
|
|
|
Deferred revenue
|
(5,176
|
)
|
|
|
Total purchase consideration
|
$
|
41,054
|
|
|
(4)
|
RESTRUCTURING COSTS
|
|
|
Workforce
reduction
|
|
Consolidation
of excess
facilities
|
|
Total
|
||||||
|
Balance at October 31, 2017
|
$
|
1,291
|
|
|
$
|
1,648
|
|
|
$
|
2,939
|
|
|
Additional liability recorded
|
12,876
|
|
(1)
|
3,803
|
|
(2)
|
16,679
|
|
|||
|
Cash payments
|
(10,987
|
)
|
|
(3,084
|
)
|
|
(14,071
|
)
|
|||
|
Balance at July 31, 2018
|
$
|
3,180
|
|
|
$
|
2,367
|
|
|
$
|
5,547
|
|
|
Current restructuring liabilities
|
$
|
3,180
|
|
|
$
|
1,076
|
|
|
$
|
4,256
|
|
|
Non-current restructuring liabilities
|
$
|
—
|
|
|
$
|
1,291
|
|
|
$
|
1,291
|
|
|
(1)
|
Reflects a global workforce reduction of approximately
230
employees during fiscal 2018 as part of a business optimization strategy to improve gross margin, constrain operating expense and redesign certain business processes.
|
|
(2)
|
Reflects unfavorable lease commitments in connection with a portion of facilities located in Petaluma, California and in Gurgaon, India.
|
|
|
Workforce
reduction
|
|
Consolidation
of excess
facilities
|
|
Total
|
||||||
|
Balance at October 31, 2016
|
$
|
868
|
|
|
$
|
1,970
|
|
|
$
|
2,838
|
|
|
Additional liability recorded
|
3,967
|
|
(1)
|
4,907
|
|
(2)
|
8,874
|
|
|||
|
Cash payments
|
(3,370
|
)
|
|
(2,679
|
)
|
|
(6,049
|
)
|
|||
|
Balance at July 31, 2017
|
$
|
1,465
|
|
|
$
|
4,198
|
|
|
$
|
5,663
|
|
|
Current restructuring liabilities
|
$
|
1,465
|
|
|
$
|
4,198
|
|
|
$
|
5,663
|
|
|
Non-current restructuring liabilities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
(1)
|
Reflects a global workforce reduction of approximately
60
employees during fiscal 2017 as part of a business optimization strategy to improve gross margin, constrain operating expense and redesign certain business processes and systems.
|
|
(2)
|
Reflects unfavorable lease commitments and relocation costs incurred during fiscal 2017 in connection with the facility transition from Ciena’s existing research and development center located at Lab 10 on the former Nortel Carling Campus to a new campus facility in Ottawa, Canada.
|
|
(5)
|
INTEREST AND OTHER INCOME (LOSS), NET
|
|
|
Quarter Ended July 31,
|
|
Nine Months Ended July 31,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Interest income
|
$
|
3,620
|
|
|
$
|
1,820
|
|
|
$
|
9,276
|
|
|
$
|
4,609
|
|
|
Gains (losses) on non-hedge designated foreign currency forward contracts
|
2,182
|
|
|
834
|
|
|
4,351
|
|
|
(891
|
)
|
||||
|
Foreign currency exchange loss
|
(6,879
|
)
|
|
(2,946
|
)
|
|
(11,670
|
)
|
|
(4,071
|
)
|
||||
|
Modification of term loan
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,924
|
)
|
||||
|
Other
|
(466
|
)
|
|
(556
|
)
|
|
(629
|
)
|
|
(119
|
)
|
||||
|
Interest and other income (loss), net
|
$
|
(1,543
|
)
|
|
$
|
(848
|
)
|
|
$
|
1,328
|
|
|
$
|
(3,396
|
)
|
|
(6)
|
INCOME TAXES
|
|
|
July 31,
|
|
October 31,
|
||||
|
|
2018
|
|
2017
|
||||
|
Deferred tax assets:
|
|
|
|
||||
|
Reserves and accrued liabilities
|
$
|
35,022
|
|
|
$
|
56,597
|
|
|
Depreciation and amortization
|
317,526
|
|
|
451,385
|
|
||
|
NOL and credit carry forward
|
496,327
|
|
|
803,622
|
|
||
|
Other
|
20,077
|
|
|
29,398
|
|
||
|
Gross deferred tax assets
|
868,952
|
|
|
1,341,002
|
|
||
|
Valuation allowance
|
(144,865
|
)
|
|
(185,898
|
)
|
||
|
Deferred tax asset, net of valuation allowance
|
$
|
724,087
|
|
|
$
|
1,155,104
|
|
|
(7)
|
SHORT-TERM AND LONG-TERM INVESTMENTS
|
|
|
July 31, 2018
|
||||||||||||||
|
|
Amortized Cost
|
|
Gross Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Estimated Fair
Value
|
||||||||
|
U.S. government obligations:
|
|
|
|
|
|
|
|
||||||||
|
Included in short-term investments
|
$
|
199,415
|
|
|
$
|
—
|
|
|
(418
|
)
|
|
$
|
198,997
|
|
|
|
Included in long-term investments
|
29,538
|
|
|
—
|
|
|
(73
|
)
|
|
29,465
|
|
||||
|
|
$
|
228,953
|
|
|
$
|
—
|
|
|
$
|
(491
|
)
|
|
$
|
228,462
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Commercial paper:
|
|
|
|
|
|
|
|
||||||||
|
Included in short-term investments
|
$
|
29,941
|
|
|
2
|
|
|
—
|
|
|
$
|
29,943
|
|
||
|
|
$
|
29,941
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
29,943
|
|
|
|
October 31, 2017
|
||||||||||||||
|
|
Amortized Cost
|
|
Gross Unrealized
Gains
|
|
Gross Unrealized
Losses
|
|
Estimated Fair
Value
|
||||||||
|
U.S. government obligations:
|
|
|
|
|
|
|
|
||||||||
|
Included in short-term investments
|
$
|
249,498
|
|
|
$
|
—
|
|
|
$
|
(305
|
)
|
|
$
|
249,193
|
|
|
Included in long-term investments
|
49,910
|
|
|
—
|
|
|
(127
|
)
|
|
49,783
|
|
||||
|
|
$
|
299,408
|
|
|
$
|
—
|
|
|
$
|
(432
|
)
|
|
$
|
298,976
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Commercial paper:
|
|
|
|
|
|
|
|
||||||||
|
Included in short-term investments
|
$
|
29,939
|
|
|
1
|
|
|
—
|
|
|
$
|
29,940
|
|
||
|
|
$
|
29,939
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
29,940
|
|
|
|
Amortized
Cost
|
|
Estimated
Fair Value
|
||||
|
Less than one year
|
$
|
229,356
|
|
|
$
|
228,940
|
|
|
Due in 1-2 years
|
29,538
|
|
|
29,465
|
|
||
|
|
$
|
258,894
|
|
|
$
|
258,405
|
|
|
(8)
|
FAIR VALUE MEASUREMENTS
|
|
|
July 31, 2018
|
||||||||||
|
|
Level 1
|
|
Level 2
|
|
Total
|
||||||
|
Assets:
|
|
|
|
|
|
||||||
|
Money market funds
|
$
|
579,413
|
|
|
$
|
—
|
|
|
$
|
579,413
|
|
|
U.S. government obligations
|
—
|
|
|
228,462
|
|
|
228,462
|
|
|||
|
Commercial paper
|
—
|
|
|
69,860
|
|
|
69,860
|
|
|||
|
Foreign currency forward contracts
|
—
|
|
|
668
|
|
|
668
|
|
|||
|
Forward starting interest rate swaps
|
—
|
|
|
6,667
|
|
|
6,667
|
|
|||
|
Total assets measured at fair value
|
$
|
579,413
|
|
|
$
|
305,657
|
|
|
$
|
885,070
|
|
|
|
|
|
|
|
|
||||||
|
Liabilities:
|
|
|
|
|
|
||||||
|
Foreign currency forward contracts
|
$
|
—
|
|
|
$
|
2,968
|
|
|
$
|
2,968
|
|
|
Total liabilities measured at fair value
|
$
|
—
|
|
|
$
|
2,968
|
|
|
$
|
2,968
|
|
|
|
October 31, 2017
|
||||||||||
|
|
Level 1
|
|
Level 2
|
|
Total
|
||||||
|
Assets:
|
|
|
|
|
|
||||||
|
Money market funds
|
$
|
511,355
|
|
|
$
|
—
|
|
|
$
|
511,355
|
|
|
U.S. government obligations
|
—
|
|
|
298,976
|
|
|
298,976
|
|
|||
|
Commercial paper
|
—
|
|
|
89,865
|
|
|
89,865
|
|
|||
|
Foreign currency forward contracts
|
—
|
|
|
227
|
|
|
227
|
|
|||
|
Forward starting interest rate swaps
|
—
|
|
|
218
|
|
|
218
|
|
|||
|
Total assets measured at fair value
|
$
|
511,355
|
|
|
$
|
389,286
|
|
|
$
|
900,641
|
|
|
|
|
|
|
|
|
||||||
|
Liabilities:
|
|
|
|
|
|
||||||
|
Foreign currency forward contracts
|
$
|
—
|
|
|
$
|
2,129
|
|
|
$
|
2,129
|
|
|
Total liabilities measured at fair value
|
$
|
—
|
|
|
$
|
2,129
|
|
|
$
|
2,129
|
|
|
|
July 31, 2018
|
||||||||||
|
|
Level 1
|
|
Level 2
|
|
Total
|
||||||
|
Assets:
|
|
|
|
|
|
||||||
|
Cash equivalents
|
$
|
579,413
|
|
|
$
|
39,917
|
|
|
$
|
619,330
|
|
|
Short-term investments
|
—
|
|
|
228,940
|
|
|
228,940
|
|
|||
|
Prepaid expenses and other
|
—
|
|
|
668
|
|
|
668
|
|
|||
|
Long-term investments
|
—
|
|
|
29,465
|
|
|
29,465
|
|
|||
|
Other long-term assets
|
—
|
|
|
6,667
|
|
|
6,667
|
|
|||
|
Total assets measured at fair value
|
$
|
579,413
|
|
|
$
|
305,657
|
|
|
$
|
885,070
|
|
|
|
|
|
|
|
|
||||||
|
Liabilities:
|
|
|
|
|
|
||||||
|
Accrued liabilities
|
$
|
—
|
|
|
$
|
2,968
|
|
|
$
|
2,968
|
|
|
Total liabilities measured at fair value
|
$
|
—
|
|
|
$
|
2,968
|
|
|
$
|
2,968
|
|
|
|
October 31, 2017
|
||||||||||
|
|
Level 1
|
|
Level 2
|
|
Total
|
||||||
|
Assets:
|
|
|
|
|
|
||||||
|
Cash equivalents
|
$
|
511,355
|
|
|
$
|
59,925
|
|
|
$
|
571,280
|
|
|
Short-term investments
|
—
|
|
|
279,133
|
|
|
279,133
|
|
|||
|
Prepaid expenses and other
|
—
|
|
|
227
|
|
|
227
|
|
|||
|
Long-term investments
|
—
|
|
|
49,783
|
|
|
49,783
|
|
|||
|
Other long-term assets
|
—
|
|
|
218
|
|
|
218
|
|
|||
|
Total assets measured at fair value
|
$
|
511,355
|
|
|
$
|
389,286
|
|
|
$
|
900,641
|
|
|
|
|
|
|
|
|
||||||
|
Liabilities:
|
|
|
|
|
|
||||||
|
Accrued liabilities
|
$
|
—
|
|
|
$
|
2,129
|
|
|
$
|
2,129
|
|
|
Total liabilities measured at fair value
|
$
|
—
|
|
|
$
|
2,129
|
|
|
$
|
2,129
|
|
|
(9)
|
INVENTORIES
|
|
|
July 31,
2018 |
|
October 31,
2017 |
||||
|
Raw materials
|
$
|
54,003
|
|
|
$
|
52,898
|
|
|
Work-in-process
|
11,100
|
|
|
18,623
|
|
||
|
Finished goods
|
173,419
|
|
|
185,488
|
|
||
|
Deferred cost of goods sold
|
38,525
|
|
|
61,340
|
|
||
|
|
277,047
|
|
|
318,349
|
|
||
|
Provision for excess and obsolescence
|
(49,162
|
)
|
|
(51,206
|
)
|
||
|
|
$
|
227,885
|
|
|
$
|
267,143
|
|
|
(10)
|
ACCRUED LIABILITIES AND OTHER SHORT-TERM OBLIGATIONS
|
|
|
July 31,
2018 |
|
October 31,
2017 |
||||
|
Compensation, payroll related tax and benefits
|
$
|
99,740
|
|
|
$
|
113,272
|
|
|
Warranty
|
44,150
|
|
|
42,456
|
|
||
|
Vacation
|
40,747
|
|
|
39,778
|
|
||
|
Capital lease obligations
|
3,773
|
|
|
3,772
|
|
||
|
Interest payable
|
4,991
|
|
|
3,612
|
|
||
|
Other
|
104,587
|
|
|
120,044
|
|
||
|
|
$
|
297,988
|
|
|
$
|
322,934
|
|
|
Nine Months Ended July 31,
|
|
Beginning Balance
|
|
Current Period Provisions
(1)
|
|
Settlements
|
|
Ending Balance
|
||||||
|
2017
|
|
$
|
52,324
|
|
|
5,188
|
|
|
(13,216
|
)
|
|
$
|
44,296
|
|
|
2018
|
|
$
|
42,456
|
|
|
15,715
|
|
|
(14,021
|
)
|
|
$
|
44,150
|
|
|
(11)
|
DERIVATIVE INSTRUMENTS
|
|
(12)
|
ACCUMULATED OTHER COMPREHENSIVE INCOME
|
|
|
Unrealized
|
|
Unrealized Loss
on
|
|
Unrealized Gain on
|
|
Cumulative Foreign Currency
|
|
|
||||||||||
|
|
Loss on Available-for-sale Securities
|
|
Foreign Currency Forward Contracts
|
|
Forward Starting Interest Rate Swap
|
|
Foreign Currency
Translation Adjustment
|
|
Total
|
||||||||||
|
Balance at October 31, 2017
|
$
|
(451
|
)
|
|
$
|
(1,386
|
)
|
|
$
|
218
|
|
|
$
|
(9,398
|
)
|
|
$
|
(11,017
|
)
|
|
Other comprehensive income (loss) before reclassifications
|
(59
|
)
|
|
(9
|
)
|
|
5,330
|
|
|
(2,161
|
)
|
|
3,101
|
|
|||||
|
Amounts reclassified from AOCI
|
—
|
|
|
(1,058
|
)
|
|
269
|
|
|
—
|
|
|
(789
|
)
|
|||||
|
Balance at July 31, 2018
|
$
|
(510
|
)
|
|
$
|
(2,453
|
)
|
|
$
|
5,817
|
|
|
$
|
(11,559
|
)
|
|
$
|
(8,705
|
)
|
|
|
Unrealized Gain/(Loss)
on
|
|
Unrealized Gain (Loss)
on
|
|
Unrealized Gain on
|
|
Cumulative Foreign Currency
|
|
|
||||||||||
|
|
Available-for-sale Securities
|
|
Foreign Currency Forward Contracts
|
|
Forward Starting Interest Rate Swap
|
|
Foreign Currency
Translation Adjustment
|
|
Total
|
||||||||||
|
Balance at October 31, 2016
|
$
|
139
|
|
|
$
|
(1,091
|
)
|
|
$
|
(5,967
|
)
|
|
$
|
(17,410
|
)
|
|
$
|
(24,329
|
)
|
|
Other comprehensive income (loss) before reclassifications
|
(533
|
)
|
|
896
|
|
|
4,838
|
|
|
11,891
|
|
|
17,092
|
|
|||||
|
Amounts reclassified from AOCI
|
—
|
|
|
2,010
|
|
|
(268
|
)
|
|
—
|
|
|
1,742
|
|
|||||
|
Balance at July 31, 2017
|
$
|
(394
|
)
|
|
$
|
1,815
|
|
|
$
|
(1,397
|
)
|
|
$
|
(5,519
|
)
|
|
$
|
(5,495
|
)
|
|
(13)
|
SHORT-TERM AND LONG-TERM DEBT
|
|
|
|
July 31, 2018
|
|
October 31, 2017
|
||||
|
Term Loan Payable due January 30, 2022
|
|
$
|
390,863
|
|
|
$
|
392,972
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Principal Balance
|
|
Unamortized Debt Discount
|
|
Deferred Debt Issuance Costs
|
|
Net Carrying Value
|
||||||
|
Term Loan Payable due January 30, 2022
|
$
|
395,000
|
|
|
$
|
(1,580
|
)
|
|
$
|
(2,557
|
)
|
|
$390,863
|
|
|
|
July 31, 2018
|
||||||
|
|
|
Carrying Value
|
|
Fair Value
(1)
|
||||
|
Term Loan Payable due January 30, 2022
|
|
$
|
390,863
|
|
|
$
|
396,481
|
|
|
(1)
|
The 2022 Term Loan is categorized as Level 2 in the fair value hierarchy. Ciena estimated the fair value of the 2022 Term Loan using a market approach based upon observable inputs, such as current market transactions involving comparable securities.
|
|
|
|
July 31, 2018
|
|
October 31, 2017
|
||||
|
3.75% Convertible Senior Notes due October 15, 2018 (Original)
|
|
$
|
61,234
|
|
|
$
|
61,071
|
|
|
3.75% Convertible Senior Notes due October 15, 2018 (New)
|
|
288,435
|
|
|
287,221
|
|
||
|
4.0% Convertible Senior Notes due December 15, 2020
|
|
199,642
|
|
|
194,717
|
|
||
|
|
|
$
|
549,311
|
|
|
$
|
543,009
|
|
|
|
Liability Component
|
|
Equity Component
|
||||||||||||||||
|
|
Principal Balance
|
|
Unamortized Debt Discount
|
|
Deferred Debt Issuance Costs
|
|
Net Carrying Value
|
|
Net Carrying Value
|
||||||||||
|
3.75% Convertible Senior Notes, due October 15, 2018 (Original)
|
$
|
61,270
|
|
|
$
|
—
|
|
|
$
|
(36
|
)
|
|
$
|
61,234
|
|
|
$
|
—
|
|
|
3.75% Convertible Senior Notes, due October 15, 2018 (New)
|
$
|
288,730
|
|
|
$
|
(125
|
)
|
|
$
|
(170
|
)
|
|
$
|
288,435
|
|
|
$
|
—
|
|
|
4.0% Convertible Senior Notes due December 15, 2020
(1)
|
$
|
207,809
|
|
|
$
|
(7,437
|
)
|
|
$
|
(730
|
)
|
|
$
|
199,642
|
|
|
$
|
43,131
|
|
|
(1)
|
Includes accretion of principal at a rate of
1.85%
per year.
|
|
|
|
July 31, 2018
|
||||||
|
|
|
Net Carrying Value
|
|
Fair Value
(1)
|
||||
|
3.75% Convertible Senior Notes, due October 15, 2018 (Original)
|
|
$
|
61,234
|
|
|
$
|
77,047
|
|
|
3.75% Convertible Senior Notes, due October 15, 2018 (New)
|
|
288,435
|
|
|
363,078
|
|
||
|
4.0% Convertible Senior Notes due December 15, 2020
|
|
199,642
|
|
|
233,269
|
|
||
|
|
|
$
|
549,311
|
|
|
$
|
673,394
|
|
|
(1)
|
The convertible notes were categorized as Level 2 in the fair value hierarchy. Ciena estimates the fair value of its outstanding convertible notes using a market approach based on observable inputs, such as current market transactions involving comparable securities.
|
|
(14)
|
EARNINGS PER SHARE CALCULATION
|
|
|
Quarter Ended July 31,
|
|
Nine Months Ended July 31,
|
||||||||||||
|
Numerator
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Net income (loss)
|
$
|
50,840
|
|
|
$
|
60,010
|
|
|
$
|
(408,667
|
)
|
|
$
|
101,897
|
|
|
Add: Interest expense associated with 0.875% Convertible Senior Notes due 2017
(1)
|
—
|
|
|
246
|
|
|
—
|
|
|
1,343
|
|
||||
|
Add: Interest expense associated with 3.75% Convertible Senior Notes due 2018 (Original)
|
464
|
|
|
3,572
|
|
|
—
|
|
|
10,750
|
|
||||
|
Add: Interest expense associated with 4.0% Convertible Senior Notes due 2020
|
2,624
|
|
|
3,323
|
|
|
—
|
|
|
—
|
|
||||
|
Net income (loss) used to calculate Diluted EPS
|
$
|
53,928
|
|
|
$
|
67,151
|
|
|
$
|
(408,667
|
)
|
|
$
|
113,990
|
|
|
|
Quarter Ended July 31,
|
|
Nine Months Ended July 31,
|
||||||||
|
Denominator
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
|
Basic weighted average shares outstanding
|
143,400
|
|
|
142,464
|
|
|
143,766
|
|
|
141,631
|
|
|
Add: Shares underlying outstanding stock options and restricted stock units and issuable under employee stock purchase plan
|
1,330
|
|
|
1,386
|
|
|
—
|
|
|
1,401
|
|
|
Add: Shares underlying 0.875% Convertible Senior Notes due 2017
(1)
|
—
|
|
|
1,708
|
|
|
—
|
|
|
4,043
|
|
|
Add: Shares underlying 3.75% Convertible Senior Notes due 2018 (New)
(2)
|
3,032
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Add: Shares underlying 3.75% Convertible Senior Notes due 2018 (Original)
|
3,038
|
|
|
17,356
|
|
|
—
|
|
|
17,356
|
|
|
Add: Shares underlying 4.0% Convertible Senior Notes due 2020
|
9,198
|
|
|
9,198
|
|
|
—
|
|
|
—
|
|
|
Dilutive weighted average shares outstanding
|
159,998
|
|
|
172,112
|
|
|
143,766
|
|
|
164,431
|
|
|
|
Quarter Ended July 31,
|
|
Nine Months Ended July 31,
|
||||||||||||
|
EPS
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Basic EPS
|
$
|
0.35
|
|
|
$
|
0.42
|
|
|
$
|
(2.84
|
)
|
|
$
|
0.72
|
|
|
Diluted EPS
|
$
|
0.34
|
|
|
$
|
0.39
|
|
|
$
|
(2.84
|
)
|
|
$
|
0.69
|
|
|
|
Quarter Ended July 31,
|
|
Nine Months Ended July 31,
|
||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
|
Shares underlying stock options and restricted stock units
|
318
|
|
|
682
|
|
|
2,183
|
|
|
988
|
|
|
3.75% Convertible Senior Notes due October 15, 2018 (Original)
|
—
|
|
|
—
|
|
|
3,038
|
|
|
—
|
|
|
3.75% Convertible Senior Notes due October 15, 2018 (New)
(2)
|
—
|
|
|
—
|
|
|
2,125
|
|
|
—
|
|
|
4.0% Convertible Senior Notes due December 15, 2020
|
—
|
|
|
—
|
|
|
9,198
|
|
|
9,198
|
|
|
Total shares excluded due to anti-dilutive effect
|
318
|
|
|
682
|
|
|
16,544
|
|
|
10,186
|
|
|
(15)
|
STOCKHOLDERS’ EQUITY
|
|
|
Shares Repurchased
|
|
Weighted-Average Price per Share
|
|
Amount Repurchased (in thousands)
|
|||||
|
Cumulative balance at October 31, 2017
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Repurchase of common stock under the stock repurchase program
|
3,028,118
|
|
|
24.70
|
|
|
74,787
|
|
||
|
Cumulative balance at July 31, 2018
|
3,028,118
|
|
|
$
|
24.70
|
|
|
$
|
74,787
|
|
|
(16)
|
SHARE-BASED COMPENSATION EXPENSE
|
|
|
Quarter Ended July 31,
|
|
Nine Months Ended July 31,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Product costs
|
$
|
783
|
|
|
$
|
709
|
|
|
$
|
2,279
|
|
|
$
|
1,978
|
|
|
Service costs
|
618
|
|
|
619
|
|
|
1,965
|
|
|
1,926
|
|
||||
|
Share-based compensation expense included in cost of sales
|
1,401
|
|
|
1,328
|
|
|
4,244
|
|
|
3,904
|
|
||||
|
Research and development
|
3,082
|
|
|
3,139
|
|
|
10,133
|
|
|
10,001
|
|
||||
|
Sales and marketing
|
3,417
|
|
|
3,242
|
|
|
10,505
|
|
|
9,628
|
|
||||
|
General and administrative
|
4,538
|
|
|
4,321
|
|
|
14,121
|
|
|
13,191
|
|
||||
|
Share-based compensation expense included in operating expense
|
11,037
|
|
|
10,702
|
|
|
34,759
|
|
|
32,820
|
|
||||
|
Share-based compensation expense capitalized in inventory, net
|
(101
|
)
|
|
(17
|
)
|
|
(107
|
)
|
|
119
|
|
||||
|
Total share-based compensation
|
$
|
12,337
|
|
|
$
|
12,013
|
|
|
$
|
38,896
|
|
|
$
|
36,843
|
|
|
(17)
|
SEGMENTS AND ENTITY-WIDE DISCLOSURES
|
|
•
|
Networking Platforms
reflects sales of Ciena’s Converged Packet Optical and Packet Networking product lines
.
|
|
◦
|
Converged Packet Optical
—
includes the 6500 Packet-Optical Platform, the 5430 Reconfigurable Switching System, Waveserver® stackable interconnect system, the family of CoreDirector® Multiservice Optical Switches and the OTN configuration for the 5410 Reconfigurable Switching System. This product line also includes sales of the Z-Series Packet-Optical Platform. As of the first quarter of fiscal 2018, sales of Optical Transport products are also reflected within the Converged Packet Optical product line for all periods presented.
|
|
◦
|
Packet Networking
—
includes the 3000 family of service delivery switches and the 5000 family of service aggregation switches. This product line also includes the 8700 Packetwave® Platform and the Ethernet packet configuration for the 5410 Service Aggregation Switch.
|
|
•
|
Software and Software-Related Services
reflects sales of Ciena’s software platforms and software-related services.
|
|
◦
|
Ciena’s Blue Planet Intelligent Automation Platform, which is a comprehensive, open software suite that allows customers to use enhanced knowledge about their network to drive adaptive optimization of their services and operations. Ciena’s Blue Planet Intelligent Automation Platform includes multi-domain service orchestration (MDSO), network function virtualization (NFV), management and orchestration (NFV MANO), analytics, network health predictor (NHP), route optimization and assurance (ROA) and Ciena’s SDN Multilayer Controller and virtual wide area network (V-WAN) application. Ciena acquired the NHP and ROA software solutions as a part of its acquisition of Packet Design.
|
|
◦
|
Ciena’s management software, which provides analytics, data, and planning tools to assist customers in managing Ciena’s Networking Platforms products in their networks. Ciena’s management software consists of Blue Planet Manage, Control and Plan (MCP) domain controller solution, OneControl Unified Management System, ON-Center® Network & Service Management Suite, Ethernet Services Manager, Optical Suite Release and Planet Operate. As Ciena seeks adoption of its Blue Planet MCP software platform and transitions features, functionality and customers to this platform, Ciena expects revenue declines for its other management software solutions.
|
|
•
|
Global Services
reflects sales of a broad range of Ciena’s services for consulting and network design, installation and deployment, maintenance support and training activities. Revenue from this segment is included in services revenue on the Condensed Consolidated Statements of Operations.
|
|
|
Quarter Ended July 31,
|
|
Nine Months Ended July 31,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Revenue:
|
|
|
|
|
|
|
|
||||||||
|
Networking Platforms
|
|
|
|
|
|
|
|
||||||||
|
Converged Packet Optical
|
$
|
592,892
|
|
|
$
|
510,226
|
|
|
$
|
1,548,189
|
|
|
$
|
1,433,137
|
|
|
Packet Networking
|
84,559
|
|
|
82,121
|
|
|
216,977
|
|
|
220,641
|
|
||||
|
Total Networking Platforms
|
677,451
|
|
|
592,347
|
|
|
1,765,166
|
|
|
1,653,778
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Software and Software-Related Services
|
|
|
|
|
|
|
|
||||||||
|
Software Platforms
|
14,307
|
|
|
18,395
|
|
|
56,427
|
|
|
48,587
|
|
||||
|
Software-Related Services
|
26,876
|
|
|
23,856
|
|
|
76,988
|
|
|
70,760
|
|
||||
|
Total Software and Software-Related Services
|
41,183
|
|
|
42,251
|
|
|
133,415
|
|
|
119,347
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Global Services
|
|
|
|
|
|
|
|
||||||||
|
Maintenance Support and Training
|
60,897
|
|
|
57,902
|
|
|
177,759
|
|
|
171,133
|
|
||||
|
Installation and Deployment
|
31,262
|
|
|
27,397
|
|
|
89,487
|
|
|
84,011
|
|
||||
|
Consulting and Network Design
|
8,024
|
|
|
8,822
|
|
|
29,103
|
|
|
28,969
|
|
||||
|
Total Global Services
|
100,183
|
|
|
94,121
|
|
|
296,349
|
|
|
284,113
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Consolidated revenue
|
$
|
818,817
|
|
|
$
|
728,719
|
|
|
$
|
2,194,930
|
|
|
$
|
2,057,238
|
|
|
|
Quarter Ended July 31,
|
|
Nine Months Ended July 31,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Segment profit:
|
|
|
|
|
|
|
|
||||||||
|
Networking Platforms
|
$
|
181,603
|
|
|
$
|
159,649
|
|
|
$
|
396,995
|
|
|
$
|
423,859
|
|
|
Software and Software-Related Services
|
9,305
|
|
|
11,133
|
|
|
41,216
|
|
|
23,384
|
|
||||
|
Global Services
|
39,502
|
|
|
39,565
|
|
|
121,823
|
|
|
116,637
|
|
||||
|
Total segment profit
|
230,410
|
|
|
210,347
|
|
|
560,034
|
|
|
563,880
|
|
||||
|
Less: Non-performance operating expenses
|
|
|
|
|
|
|
|
||||||||
|
Selling and marketing
|
95,395
|
|
|
86,739
|
|
|
281,269
|
|
|
260,292
|
|
||||
|
General and administrative
|
38,212
|
|
|
35,569
|
|
|
115,594
|
|
|
106,423
|
|
||||
|
Significant asset impairments and restructuring costs
|
6,359
|
|
|
2,203
|
|
|
16,679
|
|
|
8,874
|
|
||||
|
Amortization of intangible assets
|
3,837
|
|
|
3,837
|
|
|
11,083
|
|
|
29,368
|
|
||||
|
Acquisition and integration costs
|
1,333
|
|
|
—
|
|
|
1,333
|
|
|
—
|
|
||||
|
Add: Other non-performance financial items
|
|
|
|
|
|
|
|
||||||||
|
Interest expense and other income (loss), net
|
(15,154
|
)
|
|
(14,263
|
)
|
|
(39,048
|
)
|
|
(45,322
|
)
|
||||
|
Less: Provision for income taxes
|
19,280
|
|
|
7,726
|
|
|
503,695
|
|
|
11,704
|
|
||||
|
Consolidated net income (loss)
|
$
|
50,840
|
|
|
$
|
60,010
|
|
|
$
|
(408,667
|
)
|
|
$
|
101,897
|
|
|
|
July 31,
2018 |
|
October 31,
2017 |
||||
|
Canada
|
$
|
197,057
|
|
|
$
|
203,491
|
|
|
United States
|
79,243
|
|
|
90,482
|
|
||
|
Other International
|
19,563
|
|
|
14,492
|
|
||
|
Total
|
$
|
295,863
|
|
|
$
|
308,465
|
|
|
|
Quarter Ended July 31,
|
|
Nine Months Ended July 31,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Verizon
|
$
|
97,103
|
|
|
$
|
82,918
|
|
|
$
|
221,475
|
|
|
$
|
206,272
|
|
|
AT&T
|
87,389
|
|
|
120,931
|
|
|
263,453
|
|
|
324,900
|
|
||||
|
Web-scale provider
|
86,364
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
||||
|
Total
|
$
|
270,856
|
|
|
$
|
203,849
|
|
|
$
|
484,928
|
|
|
$
|
531,172
|
|
|
n/a
|
Denotes revenue representing less than 10% of total revenue for the period
|
|
(18)
|
COMMITMENTS AND CONTINGENCIES
|
|
(19)
|
SUBSEQUENT EVENTS
|
|
•
|
our ability to execute our business and growth strategies;
|
|
•
|
fluctuations in our revenue, gross margin and operating results and our financial results generally;
|
|
•
|
the loss of any of our large customers, a significant reduction in their spending, or a material change in their networking or procurement strategies;
|
|
•
|
the competitive environment in which we operate;
|
|
•
|
market acceptance of products and services currently under development and delays in product or software development;
|
|
•
|
lengthy sales cycles and onerous contract terms with communications service providers, Web-scale providers and other large customers;
|
|
•
|
product performance or security problems and undetected errors;
|
|
•
|
our ability to diversify our customer base beyond our traditional customers and to broaden the application for our solutions in communications networks;
|
|
•
|
the level of growth in network traffic and bandwidth consumption and the corresponding level of investment in network infrastructures by network operators;
|
|
•
|
the international scale of our operations and fluctuations in currency exchange rates;
|
|
•
|
our ability to forecast accurately demand for our products for purposes of inventory purchase practices;
|
|
•
|
the impact of pricing pressure and price erosion that we regularly encounter in our markets;
|
|
•
|
our ability to enforce our intellectual property rights, and costs we may incur in response to intellectual property right infringement claims made against us;
|
|
•
|
the continued availability, on commercially reasonable terms, of software and other technology under third-party licenses;
|
|
•
|
the potential failure to maintain the security of confidential, proprietary or otherwise sensitive business information or systems or to protect against cyber attacks;
|
|
•
|
the performance of our third-party contract manufacturers;
|
|
•
|
changes or disruption in components or supplies provided by third parties, including sole and limited source suppliers;
|
|
•
|
our ability to manage effectively our relationships with third-party service partners and distributors;
|
|
•
|
unanticipated risks and additional obligations in connection with our resale of complementary products or technology of other companies;
|
|
•
|
our ability to grow and maintain our new distribution relationships under which we will make available certain technology as a component;
|
|
•
|
our exposure to the credit risks of our customers and our ability to collect receivables;
|
|
•
|
modification or disruption of our internal business processes and information systems;
|
|
•
|
the effect of our outstanding indebtedness on our liquidity and business;
|
|
•
|
fluctuations in our stock price and our ability to access the capital markets to raise capital;
|
|
•
|
unanticipated expenses or disruptions to our operations caused by facilities transitions or restructuring activities;
|
|
•
|
our ability to attract and retain experienced and qualified personnel;
|
|
•
|
disruptions to our operations caused by strategic acquisitions and investments or the inability to achieve the expected benefits and synergies of newly-acquired businesses;
|
|
•
|
our ability to grow our software business and address networking strategies including software-defined networking and network function virtualization;
|
|
•
|
changes in, and the impact of, government regulations, including with respect to: the communications industry generally; the business of our customers; the use, import or export of products; and the environment, potential climate change, and other social initiatives;
|
|
•
|
the impact of the Tax Cuts & Jobs Act and any adjustments to provisional estimates relating thereto;
|
|
•
|
future legislation or executive action in the U.S. relating to tax policy or trade regulation;
|
|
•
|
the write-down of goodwill, long-lived assets, or our deferred tax assets;
|
|
•
|
our ability to maintain effective internal controls over financial reporting and liabilities that result from the inability to comply with corporate governance requirements; and
|
|
•
|
adverse results in litigation matters.
|
|
•
|
$431.3 million charge related to the remeasurement of U.S. net deferred tax assets at the lower statutory rate under the Tax Act; and
|
|
•
|
$45.6 million charge related to a transition tax on accumulated historical foreign earnings and its deemed repatriation to the U.S.
|
|
|
Quarter Ended July 31,
|
|
Increase
|
|
|
|||||||||||||
|
|
2018
|
|
%*
|
|
2017
|
|
%*
|
|
(decrease)
|
|
%**
|
|||||||
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Networking Platforms
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Converged Packet Optical
|
$
|
592,892
|
|
|
72.5
|
|
$
|
510,226
|
|
|
70.0
|
|
$
|
82,666
|
|
|
16.2
|
|
|
Packet Networking
|
84,559
|
|
|
10.3
|
|
82,121
|
|
|
11.3
|
|
2,438
|
|
|
3.0
|
|
|||
|
Total Networking Platforms
|
677,451
|
|
|
82.8
|
|
592,347
|
|
|
81.3
|
|
85,104
|
|
|
14.4
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Software and Software-Related Services
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Software Platforms
|
14,307
|
|
|
1.7
|
|
18,395
|
|
|
2.5
|
|
(4,088
|
)
|
|
(22.2
|
)
|
|||
|
Software-Related Services
|
26,876
|
|
|
3.3
|
|
23,856
|
|
|
3.3
|
|
3,020
|
|
|
12.7
|
|
|||
|
Total Software and Software-Related Services
|
41,183
|
|
|
5.0
|
|
42,251
|
|
|
5.8
|
|
(1,068
|
)
|
|
(2.5
|
)
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Global Services
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Maintenance Support and Training
|
60,897
|
|
|
7.4
|
|
57,902
|
|
|
7.9
|
|
2,995
|
|
|
5.2
|
|
|||
|
Installation and Deployment
|
31,262
|
|
|
3.8
|
|
27,397
|
|
|
3.8
|
|
3,865
|
|
|
14.1
|
|
|||
|
Consulting and Network Design
|
8,024
|
|
|
1.0
|
|
8,822
|
|
|
1.2
|
|
(798
|
)
|
|
(9.0
|
)
|
|||
|
Total Global Services
|
100,183
|
|
|
12.2
|
|
94,121
|
|
|
12.9
|
|
6,062
|
|
|
6.4
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Consolidated revenue
|
$
|
818,817
|
|
|
100.0
|
|
$
|
728,719
|
|
|
100.0
|
|
$
|
90,098
|
|
|
12.4
|
|
|
•
|
Networking Platforms
segment revenue
increased
, primarily reflecting product line sales increases of
$82.7 million
of our Converged Packet Optical products and
$2.4 million
of our Packet Networking products.
|
|
◦
|
Converged Packet Optical sales primarily reflect sales increases of $56.9 million of our Waveserver stackable interconnect system and $38.4 million of our 6500 Packet-Optical Platform. These increases were partially offset by a sales decrease of $10.3 million of our 5410/5430 Reconfigurable Switching Systems. The sales increase of our Waveserver stackable interconnect system is primarily due to increased sales to Web-scale providers, which, as we continue to diversify, represent a growing portion of our business. The sales increase of our 6500 Packet-Optical Platform is primarily due to increased sales to Web-scale providers and enterprise
|
|
◦
|
Packet Networking sales primarily reflect sales increases of $15.2 million of our packet networking platform independent software and $3.8 million of our 8700 Packetwave Platform. These increases were partially offset by a sales decrease of $16.1 million of our 3000 and 5000 families of service delivery and aggregation switches, primarily due to decreased sales to AT&T.
|
|
◦
|
Software and Software-Related Services
segment revenue
decreased
, primarily reflecting a sales decrease of
$4.1 million
of our software platforms, partially offset by a sales increase of
$3.0 million
in our software-related services. The decrease in our software platforms is primarily related to reduced sales of $3.1 million of our Optical Suite Release and $2.7 million of our OneControl Unified Management System, partially offset by sales increases of $1.4 million of Ethernet Services Manager and $1.2 million of our Blue Planet MCP. The increase in our software-related services is primarily related to increased sales of $1.3 million of our software subscriptions and $1.3 million of services supporting our Blue Planet Intelligent Automation Platform.
|
|
•
|
Global Services
segment revenue
increased
, primarily reflecting sales increases of $3.9 million of our installation and deployment services and $3.0 million of our maintenance support and training services.
|
|
|
Quarter Ended July 31,
|
|
Increase
|
|
|
|||||||||||||
|
|
2018
|
|
%*
|
|
2017
|
|
%*
|
|
(decrease)
|
|
%**
|
|||||||
|
North America
|
$
|
497,004
|
|
|
60.7
|
|
$
|
465,238
|
|
|
63.8
|
|
$
|
31,766
|
|
|
6.8
|
|
|
EMEA
|
122,204
|
|
|
14.9
|
|
96,068
|
|
|
13.2
|
|
26,136
|
|
|
27.2
|
|
|||
|
CALA
|
27,493
|
|
|
3.4
|
|
51,709
|
|
|
7.1
|
|
(24,216
|
)
|
|
(46.8
|
)
|
|||
|
APAC
|
172,116
|
|
|
21.0
|
|
115,704
|
|
|
15.9
|
|
56,412
|
|
|
48.8
|
|
|||
|
Total
|
$
|
818,817
|
|
|
100.0
|
|
$
|
728,719
|
|
|
100.0
|
|
$
|
90,098
|
|
|
12.4
|
|
|
•
|
North America revenue
primarily reflects an increase of $33.7 million within our Networking Platforms segment partially offset by a revenue decrease of $1.4 million within our Software and Software-Related Services segment.
|
|
◦
|
Networking Platforms
revenue primarily reflects product line increases of $29.4 million of Converged Packet Optical sales and $4.5 million of Packet Networking sales.
|
|
▪
|
The revenue increase within Converged Packet Optical sales primarily reflects an increase of $42.3 million in sales of our Waveserver stackable interconnect system, partially offset by revenue decreases in sales of $7.3 million of our 6500 Packet-Optical Platform and $5.3 million in sales of our 5410/5430 Reconfigurable Switching Systems. The revenue increase for our Waveserver stackable interconnect system primarily reflects increased sales to Web-scale providers.
|
|
▪
|
The revenue increase within Packet Networking primarily reflects an increase of $15.2 million of our packet networking platform independent software, partially offset by a decrease of $11.0 million in sales of our 3000 and 5000 families of service delivery and aggregation switches to AT&T.
|
|
•
|
EMEA revenue
primarily
reflects increases of $24.7 million within our Networking Platforms segment and $2.2 million within our Global Services segment.
|
|
◦
|
Networking Platforms
segment revenue primarily reflects a product line increase of $24.2 million in Converged Packet Optical sales. The increase in Converged Packet Optical sales primarily reflects increases of $12.9 million in sales of our 6500 Packet-Optical Platform and $12.8 million in sales from our Waveserver stackable interconnect system. Both increases were primarily due to increased sales to Web-scale providers.
|
|
•
|
CALA revenue
primarily
reflects decreases of $23.4 million within our Networking Platforms segment and $1.4 million within our Global Services segment.
|
|
◦
|
Networking Platforms
segment revenue primarily reflects product line decreases of $21.4 million in Converged Packet Optical sales and $2.0 million in Packet Networking sales. The decrease in Converged Packet Optical sales primarily reflects decreases of $18.1 million in sales of our 6500 Packet-Optical Platform and $2.6 million in sales from our 5410/5430 Reconfigurable Switching Systems. The decrease in sales of our 6500 Packet-Optical Platform is primarily due to decreased sales to a certain communications service provider in Brazil.
|
|
•
|
APAC revenue
primarily reflects increases of $49.9 million within our Networking Platforms segment and $6.1 million within our Global Services segment. The increase in APAC revenue primarily represents increases in sales in India and Japan of $41.4 million and $10.6 million, respectively.
|
|
◦
|
Networking Platforms
segment revenue primarily reflects a product line increase of $50.5 million in Converged Packet Optical sales primarily due to an increase of $50.9 in sales of our 6500 Packet-Optical Platform to government customers, communications service providers and submarine network operators.
|
|
◦
|
Global Services
segment revenue primarily reflects sales increases of $4.7 million of our installation and deployment services and $1.2 million of our maintenance support and training services. Both increases were due to increased sales to communications service providers and submarine network operators.
|
|
|
Quarter Ended July 31,
|
|
Increase
|
|
|
||||||||||||
|
|
2018
|
|
%*
|
|
2017
|
|
%*
|
|
(decrease)
|
|
%**
|
||||||
|
Total revenue
|
$
|
818,817
|
|
|
100.0
|
|
$
|
728,719
|
|
|
100.0
|
|
$
|
90,098
|
|
|
12.4
|
|
Total cost of goods sold
|
467,274
|
|
|
57.1
|
|
400,643
|
|
|
55.0
|
|
66,631
|
|
|
16.6
|
|||
|
Gross profit
|
$
|
351,543
|
|
|
42.9
|
|
$
|
328,076
|
|
|
45.0
|
|
$
|
23,467
|
|
|
7.2
|
|
|
Quarter Ended July 31,
|
|
Increase
|
|
|
||||||||||||
|
|
2018
|
|
%*
|
|
2017
|
|
%*
|
|
(decrease)
|
|
%**
|
||||||
|
Product revenue
|
$
|
691,758
|
|
|
100.0
|
|
$
|
610,742
|
|
|
100.0
|
|
$
|
81,016
|
|
|
13.3
|
|
Product cost of goods sold
|
399,886
|
|
|
57.8
|
|
341,197
|
|
|
55.9
|
|
58,689
|
|
|
17.2
|
|||
|
Product gross profit
|
$
|
291,872
|
|
|
42.2
|
|
$
|
269,545
|
|
|
44.1
|
|
$
|
22,327
|
|
|
8.3
|
|
|
Quarter Ended July 31,
|
|
Increase
|
|
|
||||||||||||
|
|
2018
|
|
%*
|
|
2017
|
|
%*
|
|
(decrease)
|
|
%**
|
||||||
|
Service revenue
|
$
|
127,059
|
|
|
100.0
|
|
$
|
117,977
|
|
|
100.0
|
|
$
|
9,082
|
|
|
7.7
|
|
Service cost of goods sold
|
67,388
|
|
|
53.0
|
|
59,446
|
|
|
50.4
|
|
7,942
|
|
|
13.4
|
|||
|
Service gross profit
|
$
|
59,671
|
|
|
47.0
|
|
$
|
58,531
|
|
|
49.6
|
|
$
|
1,140
|
|
|
1.9
|
|
•
|
Gross profit as a percentage of revenue
reflects reduced product and services gross profit as described below. We have encountered and expect to continue to encounter fluctuations or reductions in quarterly gross margin during fiscal 2018 as a result of our strategy to leverage our technology leadership and to aggressively capture additional market share and displace competitors, particularly with communications service providers internationally. Our success in implementing this strategy may require that we agree to aggressive pricing, commercial concessions and other unfavorable terms, and it may result in an increased mix of revenues from early stage deployments, any or all of which may result in low or negative gross margins on a particular order or group of orders.
|
|
•
|
Gross profit on products as a percentage of product revenue
decreased
primarily as a result of our strategy to capture market share as described above and the impact of early stages of network deployments with service provider customers, including an increased concentration of lower margin “common” equipment sales and decreased sales of our software platforms, partially offset by higher margins from increased sales of our packet networking platform independent software and product cost reductions.
|
|
•
|
Gross profit on services as a percentage of services revenue
decreased
primarily due to reduced margins on our software-related services and maintenance services and increased sales of lower margin installation and deployment services. Reduced margins on software-related services are primarily due to increased costs related to developing resources to promote our growth strategy. Lower maintenance services margins reflect increased spares logistics costs.
|
|
•
|
Research and development expense
primarily consists of salaries and related employee expense (including share-based compensation expense), prototype costs relating to design, development, product testing, depreciation expense, and third-party consulting costs.
|
|
•
|
Selling and marketing expense
primarily consists of salaries, commissions and related employee expense (including share-based compensation expense) and sales and marketing support expense, including travel, demonstration units, trade show expense, and third-party consulting costs.
|
|
•
|
General and administrative expense
primarily consists of salaries and related employee expense (including share-based compensation expense), and costs for third-party consulting and other services.
|
|
•
|
Significant asset impairments and restructuring costs
primarily reflect actions we have taken to better align our workforce, facilities, and operating costs with perceived market opportunities, business strategies, changes in market and business conditions and significant impairments of assets.
|
|
•
|
Amortization of intangible assets
primarily reflects the amortization of both purchased technology and the value of customer relationships derived from our acquisitions.
|
|
•
|
Acquisition and integration costs
consist of expenses for financial, legal and accounting advisors and severance and other employee-related costs, associated with our acquisition of Packet Design.
|
|
|
Quarter Ended July 31,
|
|
Increase
|
|
|
||||||||||||
|
|
2018
|
|
%*
|
|
2017
|
|
%*
|
|
(decrease)
|
|
%**
|
||||||
|
Research and development
|
$
|
121,133
|
|
|
14.8
|
|
$
|
117,729
|
|
|
16.2
|
|
$
|
3,404
|
|
|
2.9
|
|
Selling and marketing
|
95,395
|
|
|
11.7
|
|
86,739
|
|
|
11.9
|
|
8,656
|
|
|
10.0
|
|||
|
General and administrative
|
38,212
|
|
|
4.7
|
|
35,569
|
|
|
4.9
|
|
2,643
|
|
|
7.4
|
|||
|
Significant asset impairments and restructuring costs
|
6,359
|
|
|
0.8
|
|
2,203
|
|
|
0.3
|
|
4,156
|
|
|
188.7
|
|||
|
Amortization of intangible assets
|
3,837
|
|
|
0.5
|
|
3,837
|
|
|
0.5
|
|
—
|
|
|
—
|
|||
|
Acquisition and integration costs
|
1,333
|
|
|
0.2
|
|
—
|
|
|
—
|
|
1,333
|
|
|
100.0
|
|||
|
Total operating expenses
|
$
|
266,269
|
|
|
32.7
|
|
$
|
246,077
|
|
|
33.8
|
|
$
|
20,192
|
|
|
8.2
|
|
•
|
Research and development expense
increased by
$1.7 million
as a result of foreign exchange rates, net of hedging, primarily due to a weaker U.S. Dollar in relation to the Canadian Dollar. Including the effect of foreign exchange rates, research and development expenses
increased
by
$3.4 million
. This increase primarily reflects increases of $3.9 million in employee and compensation costs, $1.7 million in technology and related expenses and $1.0 million in facilities and information technology costs. Partially offsetting this increase was the benefit of $2.4 million in reimbursements from the ENCQOR grant. See Note
18
to our Condensed Consolidated Financial Statements included in Item 1 of Part I of this report for more information regarding this grant. Research and development expense also reflects a decrease of $1.1 million in prototype expense.
|
|
•
|
Selling and marketing expense
increased
by
$8.7 million
, primarily reflecting increases of $4.9 million in employee and compensation costs, $1.7 million in trade show and marketing program costs and $1.0 million in customer demonstration equipment.
|
|
•
|
General and administrative expense
increased
by
$2.6 million
, primarily reflecting a payment of $2.8 million associated with a commercial litigation dispute with a former vendor.
|
|
•
|
Significant asset impairments and restructuring costs
reflect global workforce reductions as part of a business optimization strategy to improve gross margin, constrain operating expense, and redesign certain business processes.
|
|
•
|
Amortization of intangible assets
remained relatively unchanged.
|
|
•
|
Acquisition and integration costs
reflect financial, legal and accounting advisors and severance and other employment-related costs related to our acquisition of Packet Design.
|
|
|
Quarter Ended July 31,
|
|
Increase
|
|
|
||||||||||||||
|
|
2018
|
|
%*
|
|
2017
|
|
%*
|
|
(decrease)
|
|
%**
|
||||||||
|
Interest and other income (loss), net
|
$
|
(1,543
|
)
|
|
(0.2
|
)
|
|
$
|
(848
|
)
|
|
(0.1
|
)
|
|
$
|
(695
|
)
|
|
82.0
|
|
Interest expense
|
$
|
13,611
|
|
|
1.7
|
|
|
$
|
13,415
|
|
|
1.8
|
|
|
$
|
196
|
|
|
1.5
|
|
Provision for income taxes
|
$
|
19,280
|
|
|
2.4
|
|
|
$
|
7,726
|
|
|
1.1
|
|
|
$
|
11,554
|
|
|
149.5
|
|
•
|
Interest and other income (loss), net
primarily reflects a $2.6 million unfavorable impact of foreign exchange rates on assets and liabilities denominated in a currency other than the relevant functional currency, net of hedging activity, partially offset by a $1.8 million gain in interest income due to higher interest rates on our investments in the third quarter of fiscal 2018.
|
|
•
|
Interest expense
remained relatively unchanged.
|
|
•
|
Provision for income taxes
increased
primarily due to higher U.S. federal income tax.
|
|
|
Nine Months Ended July 31,
|
|
Increase
|
|
|
|||||||||||||
|
|
2018
|
|
%*
|
|
2017
|
|
%*
|
|
(decrease)
|
|
%**
|
|||||||
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Networking Platforms
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Converged Packet Optical
|
$
|
1,548,189
|
|
|
70.5
|
|
$
|
1,433,137
|
|
|
69.7
|
|
$
|
115,052
|
|
|
8.0
|
|
|
Packet Networking
|
216,977
|
|
|
9.9
|
|
220,641
|
|
|
10.7
|
|
(3,664
|
)
|
|
(1.7
|
)
|
|||
|
Total Networking Platforms
|
1,765,166
|
|
|
80.4
|
|
1,653,778
|
|
|
80.4
|
|
111,388
|
|
|
6.7
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Software and Software-Related Services
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Software Platforms
|
56,427
|
|
|
2.6
|
|
48,587
|
|
|
2.4
|
|
7,840
|
|
|
16.1
|
|
|||
|
Software-Related Services
|
76,988
|
|
|
3.5
|
|
70,760
|
|
|
3.4
|
|
6,228
|
|
|
8.8
|
|
|||
|
Total Software and Software-Related Services
|
133,415
|
|
|
6.1
|
|
119,347
|
|
|
5.8
|
|
14,068
|
|
|
11.8
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Global Services
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Maintenance Support and Training
|
177,759
|
|
|
8.1
|
|
171,133
|
|
|
8.3
|
|
6,626
|
|
|
3.9
|
|
|||
|
Installation and Deployment
|
89,487
|
|
|
4.1
|
|
84,011
|
|
|
4.1
|
|
5,476
|
|
|
6.5
|
|
|||
|
Consulting and Network Design
|
29,103
|
|
|
1.3
|
|
28,969
|
|
|
1.4
|
|
134
|
|
|
0.5
|
|
|||
|
Total Global Services
|
296,349
|
|
|
13.5
|
|
284,113
|
|
|
13.8
|
|
12,236
|
|
|
4.3
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Consolidated revenue
|
$
|
2,194,930
|
|
|
100.0
|
|
$
|
2,057,238
|
|
|
100.0
|
|
$
|
137,692
|
|
|
6.7
|
|
|
•
|
Networking Platforms
segment revenue
increased
, primarily reflecting a product line sales increase of
$115.1 million
of our Converged Packet Optical products, partially offset by a product line decrease of
$3.7 million
of our Packet Networking products.
|
|
◦
|
Converged Packet Optical sales primarily reflect a sales increase of $181.7 million of our Waveserver stackable interconnect system, primarily due to increased sales to Web-scale providers, which, as we continue to diversify, represent a growing portion of our business. This increase was partially offset by sales decreases of $26.5 million of our 5410/5430 Reconfigurable Switching Systems, $23.1 million of our 6500 Packet-Optical Platform and $10.5 million of our Z-Series Packet-Optical Platform. The decrease in sales of our 5410/5430 Reconfigurable Switching Systems are primarily due to decreased sales to communications service providers and submarine network operators. The decrease in sales of our 6500 Packet-Optical Platform are primarily due to decreased sales to cable and multiservice operators, AT&T and government customers, partially offset by increased sales to Web-scale providers and sales through our strategic partnership with Ericsson.
|
|
◦
|
Packet Networking sales primarily reflect a sales decrease of $33.1 million of our 3000 and 5000 families of service delivery and aggregation switches, partially offset by sales increases of $15.2 million of our packet networking platform independent software and $11.7 million of our 8700 Packetwave Platform.
The sales decrease of our 3000 and 5000 families primarily reflects decreased sales to AT&T, partially offset by increased sales to other communications service providers.
|
|
•
|
Software and Software-Related Services
segment revenue
increased
, primarily reflecting sales increases of
$7.8 million
of our software platforms and
$6.2 million
in our software-related services platforms. The increase in our software platform sales primarily reflects increases of $10.9 million in sales of our Blue Planet MCP software platform, $4.8 of our Blue Planet Intelligent Automation Platform and $1.3 million of our Ethernet Services Manager, partially offset by decreases of $3.8 million in sales of our OneControl Unified Management System and $3.2 in sales of our Optical Suite Release. The increase in our software-related services platforms primarily reflects sales increases of $2.8 million in our software subscriptions, $1.8 million in our software training services and $1.6 million in services supporting our Blue Planet Intelligent Automation Platform.
|
|
•
|
Global Services
segment revenue
increased
, primarily reflecting sales increases of
$6.6 million
of our maintenance support and training services and
$5.5 million
of our installation and deployment services.
|
|
|
Nine Months Ended July 31,
|
|
Increase
|
|
|
|||||||||||||
|
|
2018
|
|
%*
|
|
2017
|
|
%*
|
|
(decrease)
|
|
%**
|
|||||||
|
North America
|
$
|
1,331,148
|
|
|
60.6
|
|
$
|
1,295,539
|
|
|
63.0
|
|
$
|
35,609
|
|
|
2.7
|
|
|
EMEA
|
341,785
|
|
|
15.6
|
|
293,387
|
|
|
14.3
|
|
48,398
|
|
|
16.5
|
|
|||
|
CALA
|
87,136
|
|
|
4.0
|
|
120,826
|
|
|
5.8
|
|
(33,690
|
)
|
|
(27.9
|
)
|
|||
|
APAC
|
434,861
|
|
|
19.8
|
|
347,486
|
|
|
16.9
|
|
87,375
|
|
|
25.1
|
|
|||
|
Total
|
$
|
2,194,930
|
|
|
100.0
|
|
$
|
2,057,238
|
|
|
100.0
|
|
$
|
137,692
|
|
|
6.7
|
|
|
•
|
North America revenue
primarily reflects increases of $22.9 million within our Networking Platforms segment and $16.0 million within our Software and Software-Related Services segment, partially offset by a revenue decrease of $3.2 million within our Global Services segment.
|
|
◦
|
Networking Platforms
revenue primarily reflects a product line increase of $44.3 million of Converged Packet Optical sales, partially offset by a product line decrease of $21.4 million of Packet Networking sales.
|
|
▪
|
The revenue increase within Converged Packet Optical sales primarily reflects an increase of $149.8 million in sales of our Waveserver stackable interconnect system, partially offset by decreases in sales of $81.1 million of our 6500 Packet-Optical Platform, $14.7 million of our 5410/5430 Reconfigurable Switching Systems and $7.1 million of our Z-Series Packet-Optical Platform. The revenue increase for our Waveserver stackable interconnect system primarily reflects increased sales to Web-scale providers. The decrease in sales of our 6500 Packet-Optical Platform are primarily due to decreased sales to communications services providers, cable and multiservice operators, AT&T and government customers, partially offset by increased sales to Web-scale providers and sales through our strategic partnership with Ericsson. The decrease in sales of our 5410/5430 Reconfigurable Switching Systems are primarily due to decreased sales to communications service providers, government customers and submarine network operators.
|
|
▪
|
The revenue decrease within Packet Networking primarily reflects a decrease of $36.0 million in sales of our 3000 and 5000 families of service delivery and aggregation switches, primarily reflecting reduced sales to AT&T. This decrease was partially offset by a revenue increase of $15.2 million in sales of our packet networking platform independent software.
|
|
◦
|
Software and Software-Related Services
revenue primarily reflects increases of $11.8 million of our software platforms and $4.2 million in our software-related services platforms. The increase in our software platform sales primarily reflects an increase of $10.7 million in sales of our Blue Planet MCP software platform, $5.7 of our Blue Planet Intelligent Automation Platform and $0.8 million of our Ethernet Services Manager, partially offset by decreases of $1.5 million in sales of our OneControl Unified Management System and $2.9 in sales of our Optical Suite Release. The increase in our software-related services platforms primarily reflects sales increases of $1.6 million in services supporting our Blue Planet Intelligent Automation Platform, $1.4 million in our software subscriptions and $1.4 million in our software training services.
|
|
•
|
EMEA revenue
primarily
reflects increases of $36.9 million within our Networking Platforms segment and $14.2 million within our Global Services segment, partially offset by a revenue decrease of $2.7 million within our Software and Software-Related Services segment.
|
|
◦
|
Networking Platforms
segment revenue primarily reflects a product line increase of $40.5 million in Converged Packet Optical sales partially offset by a product line decrease of $3.5 million in Packet Networking sales. The increase in Converged Packet Optical sales primarily reflects an increase of $26.2 million in sales from our Waveserver stackable interconnect system to Web-scale providers. The increase in Converged Packet Optical sales also reflects an increase of $15.0 million in sales from our 6500 Packet-Optical Platform to communications service providers and Web-scale providers.
|
|
◦
|
Global Services
segment revenue primarily reflects increases of $7.0 million for our installation and deployment services and $6.4 million for our maintenance and training support services. These increases primarily reflect increased sales to communications service providers.
|
|
•
|
CALA revenue
primarily
reflects decreases of $31.3 million within our Networking Platforms segment and $3.5 million within our Global Services segment. These decreases were partially offset by a revenue increase of $1.1 million within our Software and Software-Related Services segment. The decrease in CALA revenue primarily relates to decreased sales to a certain cable and multiservice operator in Argentina and certain communications service providers in Brazil.
|
|
•
|
APAC revenue
primarily reflects increases of $82.9 million within our Networking Platforms segment and $4.7 million within our Global Services segment. These revenue increases primarily represent increases in sales in India and Japan of $56.2 million and $30.4 million, respectively.
|
|
◦
|
Networking Platforms
segment revenue primarily reflects product line increases of $60.2 million in Converged Packet Optical sales and $22.8 million of Packet Networking sales.
|
|
▪
|
Converged Packet Optical revenue primarily reflects increases of $67.2 million in sales of our 6500 Packet-Optical Platform and $5.5 million in sales of our Waveserver stackable interconnect system. The increase in sales of our 6500 Packet-Optical Platform primarily reflect increased sales to certain communications service providers and government customers. The increase in sales of our Waveserver stackable interconnect system primarily reflect increased sales to certain communications service providers. These increases were partially offset by a revenue decrease of $8.7 million in sales of our 5410/5430 Reconfigurable Switching Systems primarily due to decreased sales to certain communications service providers.
|
|
▪
|
Packet Networking revenue primarily reflects increases of $12.5 million in sales of our 8700 Packetwave Platform and $10.2 million in sales of our 3000 and 5000 families of service delivery and aggregation switches primarily due to increased sales to a certain communication service provider in India.
|
|
|
Nine Months Ended July 31,
|
|
Increase
|
|
|
|||||||||||||
|
|
2018
|
|
%*
|
|
2017
|
|
%*
|
|
(decrease)
|
|
%**
|
|||||||
|
Total revenue
|
$
|
2,194,930
|
|
|
100.0
|
|
$
|
2,057,238
|
|
|
100.0
|
|
$
|
137,692
|
|
|
6.7
|
|
|
Total cost of goods sold
|
1,278,315
|
|
|
58.2
|
|
1,137,137
|
|
|
55.3
|
|
141,178
|
|
|
12.4
|
|
|||
|
Gross profit
|
$
|
916,615
|
|
|
41.8
|
|
$
|
920,101
|
|
|
44.7
|
|
$
|
(3,486
|
)
|
|
(0.4
|
)
|
|
|
Nine Months Ended July 31,
|
|
Increase
|
|
|
|||||||||||||
|
|
2018
|
|
%*
|
|
2017
|
|
%*
|
|
(decrease)
|
|
%**
|
|||||||
|
Product revenue
|
$
|
1,821,593
|
|
|
100.0
|
|
$
|
1,702,365
|
|
|
100.0
|
|
$
|
119,228
|
|
|
7.0
|
|
|
Product cost of goods sold
|
1,085,574
|
|
|
59.6
|
|
955,303
|
|
|
56.1
|
|
130,271
|
|
|
13.6
|
|
|||
|
Product gross profit
|
$
|
736,019
|
|
|
40.4
|
|
$
|
747,062
|
|
|
43.9
|
|
$
|
(11,043
|
)
|
|
(1.5
|
)
|
|
|
Nine Months Ended July 31,
|
|
Increase
|
|
|
||||||||||||
|
|
2018
|
|
%*
|
|
2017
|
|
%*
|
|
(decrease)
|
|
%**
|
||||||
|
Service revenue
|
$
|
373,337
|
|
|
100.0
|
|
$
|
354,873
|
|
|
100.0
|
|
$
|
18,464
|
|
|
5.2
|
|
Service cost of goods sold
|
192,741
|
|
|
51.6
|
|
181,834
|
|
|
51.2
|
|
10,907
|
|
|
6.0
|
|||
|
Service gross profit
|
$
|
180,596
|
|
|
48.4
|
|
$
|
173,039
|
|
|
48.8
|
|
$
|
7,557
|
|
|
4.4
|
|
•
|
Gross profit as a percentage of revenue
reflects reduced product gross profit partially offset by improved services gross profit. We have encountered and expect to continue to encounter fluctuations or reductions in quarterly gross margin during fiscal 2018 as a result of our strategy to leverage our technology leadership and to aggressively capture additional market share and displace competitors, particularly with communications service providers internationally. Our success in implementing this strategy may require that we agree to aggressive pricing, commercial concessions and other unfavorable terms, and result in an increased mix of revenues from early stage deployments, any or all of which may result in low or negative gross margins on a particular order or group of orders.
|
|
•
|
Gross profit on products as a percentage of product revenue
decreased
,
primarily as a result of our strategy to capture market share as described above and the impact of early stages of international network deployments with communications service provider customers, including an increased concentration of lower margin “common” equipment sales and lower mix of higher margin packet networking sales, partially offset by increased sales of our higher margin software platforms and product cost reductions.
|
|
•
|
Gross profit on services as a percentage of services revenue
slightly
decreased
, primarily as a result of reduced margins on our software-related services, which was primarily due to increased costs related to developing resources to promote our growth strategy.
|
|
|
Nine Months Ended July 31,
|
|
Increase
|
|
|
|||||||||||||
|
|
2018
|
|
%*
|
|
2017
|
|
%*
|
|
(decrease)
|
|
%**
|
|||||||
|
Research and development
|
$
|
356,581
|
|
|
16.2
|
|
$
|
356,221
|
|
|
17.3
|
|
$
|
360
|
|
|
0.1
|
|
|
Selling and marketing
|
281,269
|
|
|
12.8
|
|
260,292
|
|
|
12.7
|
|
20,977
|
|
|
8.1
|
|
|||
|
General and administrative
|
115,594
|
|
|
5.3
|
|
106,423
|
|
|
5.2
|
|
9,171
|
|
|
8.6
|
|
|||
|
Significant asset impairments and restructuring costs
|
16,679
|
|
|
0.8
|
|
8,874
|
|
|
0.4
|
|
7,805
|
|
|
88.0
|
|
|||
|
Amortization of intangible assets
|
11,083
|
|
|
0.5
|
|
29,368
|
|
|
1.4
|
|
(18,285
|
)
|
|
(62.3
|
)
|
|||
|
Acquisition and integration costs
|
1,333
|
|
|
0.1
|
|
—
|
|
|
—
|
|
1,333
|
|
|
100.0
|
|
|||
|
Total operating expenses
|
$
|
782,539
|
|
|
35.7
|
|
$
|
761,178
|
|
|
37.0
|
|
$
|
21,361
|
|
|
2.8
|
|
|
•
|
Research and development expense
increased by
$8.0 million
as a result of foreign exchange rates, net of hedging, primarily due to a weaker U.S. Dollar in relation to the Canadian Dollar. Including the effect of foreign exchange rates, research and development expenses
increased by
$0.4 million
. This increase primarily reflects increases of $9.1 million in employee and compensation costs, $2.5 million in technology and related costs, $1.6 million in depreciation expense and $1.3 million in professional services. These increases were partially offset by a benefit of $10.5 million for the ENCQOR grant reimbursement as discussed above, and decreases of $3.2 million in prototype expense and $1.2 million in facilities and information technology costs.
|
|
•
|
Selling and marketing expense
increased by
$6.2 million
as a result of foreign exchange rates, primarily due to a weaker U.S. Dollar in relation to the Euro. Including the effect of foreign exchange rates, sales and marketing expense
increased by
$21.0 million
, primarily reflecting increases of $13.7 million in employee and compensation costs, $3.1 million in selling and marketing costs, $1.8 million in customer demonstration equipment and $1.6 million in travel and entertainment costs.
|
|
•
|
General and administrative expense
increased by
$9.2 million
, primarily reflecting increases of $3.2 million in employee and compensation costs, $2.2 million in professional services and a payment of $2.8 million associated with a commercial litigation dispute with a former vendor.
|
|
•
|
Significant asset impairments and restructuring costs
reflect global workforce reductions as part of a business optimization strategy to improve gross margin, constrain operating expense, and redesign certain business processes.
|
|
•
|
Amortization of intangible assets
decreased
due to certain intangible assets having reached the end of their economic lives.
|
|
•
|
Acquisition and integration costs
reflect financial, legal and accounting advisors and severance and other employment-related costs related to our acquisition of Packet Design.
|
|
|
Nine Months Ended July 31,
|
|
Increase
|
|
|
||||||||||||||
|
|
2018
|
|
%*
|
|
2017
|
|
%*
|
|
(decrease)
|
|
%**
|
||||||||
|
Interest and other income (loss), net
|
$
|
1,328
|
|
|
0.1
|
|
$
|
(3,396
|
)
|
|
(0.2
|
)
|
|
$
|
4,724
|
|
|
139.1
|
|
|
Interest expense
|
$
|
40,376
|
|
|
1.8
|
|
$
|
41,926
|
|
|
2.0
|
|
|
$
|
(1,550
|
)
|
|
(3.7
|
)
|
|
Provision for income taxes
|
$
|
503,695
|
|
|
22.9
|
|
$
|
11,704
|
|
|
0.6
|
|
|
$
|
491,991
|
|
|
n/a
|
|
|
•
|
Interest and other income (loss), net
primarily reflects a $4.7 million gain in interest income due to higher interest rates on our investments during fiscal 2018 and $2.9 million in debt modification expenses related to the 2022 Term Loan in the second quarter of fiscal 2017, partially offset by a $2.4 million unfavorable impact of foreign exchange rates on assets and liabilities denominated in a currency other than the relevant functional currency, net of hedging activity.
|
|
•
|
Interest expense
decreased
primarily due to a reduction in our aggregate outstanding debt due to the refinancing of our term loans during the second quarter of fiscal 2017 and the maturity of our outstanding 0.875% Convertible Senior Notes during the third quarter of fiscal 2017.
|
|
•
|
Provision for income taxes
increased
primarily due to the impact of significant additional tax expense resulting from the enactment of the Tax Act and reflects $431.3 million for the remeasurement of our net deferred tax assets and a $45.6 million charge related to a transition tax on accumulated historical foreign earnings and their deemed repatriation to the U.S. For additional information, see Note
6
to our Condensed Consolidated Financial Statements included in Item 1 of Part I of this report.
|
|
|
Quarter Ended July 31,
|
|
|
|
||||||||||
|
|
2018
|
|
2017
|
|
Increase (decrease)
|
|
%*
|
|||||||
|
Segment profit:
|
|
|
|
|
|
|
|
|||||||
|
Networking Platforms
|
$
|
181,603
|
|
|
$
|
159,649
|
|
|
$
|
21,954
|
|
|
13.8
|
|
|
Software and Software-Related Services
|
$
|
9,305
|
|
|
$
|
11,133
|
|
|
$
|
(1,828
|
)
|
|
(16.4
|
)
|
|
Global Services
|
$
|
39,502
|
|
|
$
|
39,565
|
|
|
$
|
(63
|
)
|
|
(0.2
|
)
|
|
•
|
Networking Platforms
segment
profit
increased
, primarily due to higher sales volume, partially offset by reduced gross margin as described above, and higher research and development costs.
|
|
•
|
Software and Software-Related Services
segment
profit
decreased
, primarily due to lower software sales volume and reduced gross margin on software-related services, partially offset by lower research and development costs.
|
|
•
|
Global Services
segment
profit
remained relatively unchanged.
|
|
|
Nine Months Ended July 31,
|
|
|
|
|
|||||||||
|
|
2018
|
|
2017
|
|
Increase (decrease)
|
|
%*
|
|||||||
|
Segment profit:
|
|
|
|
|
|
|
|
|||||||
|
Networking Platforms
|
$
|
396,995
|
|
|
$
|
423,859
|
|
|
$
|
(26,864
|
)
|
|
(6.3
|
)
|
|
Software and Software-Related Services
|
$
|
41,216
|
|
|
$
|
23,384
|
|
|
$
|
17,832
|
|
|
76.3
|
|
|
Global Services
|
$
|
121,823
|
|
|
$
|
116,637
|
|
|
$
|
5,186
|
|
|
4.4
|
|
|
•
|
Networking Platforms
segment
profit
decreased
, primarily due to reduced gross margin as described above, and increased research and development costs, partially offset by higher sales volume.
|
|
•
|
Software and Software-Related Services
segment
profit
increased
, primarily due to higher sales volume and lower research and development costs, partially offset by reduced gross margin on software-related services.
|
|
•
|
Global Services
segment
profit
increased
, primarily due to higher sales volume.
|
|
|
July 31,
2018 |
|
October 31,
2017 |
|
Increase
(decrease)
|
||||||
|
Cash and cash equivalents
|
$
|
726,214
|
|
|
$
|
640,513
|
|
|
$
|
85,701
|
|
|
Short-term investments in marketable debt securities
|
228,940
|
|
|
279,133
|
|
|
(50,193
|
)
|
|||
|
Long-term investments in marketable debt securities
|
29,465
|
|
|
49,783
|
|
|
(20,318
|
)
|
|||
|
Total cash and cash equivalents and investments in marketable debt securities
|
$
|
984,619
|
|
|
$
|
969,429
|
|
|
$
|
15,190
|
|
|
|
Nine months ended
|
||
|
|
July 31, 2018
|
||
|
Net loss
|
$
|
(408,667
|
)
|
|
Adjustments for non-cash charges:
|
|
||
|
Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements
|
63,104
|
|
|
|
Share-based compensation costs
|
38,896
|
|
|
|
Amortization of intangible assets
|
18,196
|
|
|
|
Deferred tax provision
|
491,863
|
|
|
|
Provision for inventory excess and obsolescence
|
19,942
|
|
|
|
Provision for warranty
|
15,715
|
|
|
|
Other
|
18,164
|
|
|
|
Net loss (adjusted for non-cash charges)
|
$
|
257,213
|
|
|
|
Nine months ended
|
||
|
|
July 31, 2018
|
||
|
Cash used in accounts receivable
|
$
|
(112,696
|
)
|
|
Cash provided by inventories
|
17,751
|
|
|
|
Cash used in prepaid expenses and other
|
(11,163
|
)
|
|
|
Cash provided by accounts payable, accruals and other obligations
|
14,840
|
|
|
|
Cash used in deferred revenue
|
(4,710
|
)
|
|
|
Total cash used for working capital
|
$
|
(95,978
|
)
|
|
•
|
The
$112.7 million
of cash
used by
accounts receivable during the first
nine
months of fiscal
2018
reflects increased sales volume at the end of the third quarter of fiscal 2018;
|
|
•
|
The
$17.8 million
of cash
provided by
inventory during the first
nine
months of fiscal
2018
primarily reflects improved manufacturing efficiencies to meet customer delivery schedules;
|
|
•
|
The
$11.2 million
of cash
used in
prepaid expense and other during the first
nine
months of fiscal
2018
primarily reflects lower prepaid value added taxes partially offset by the ENCQOR grant reimbursement receivable which was recorded during fiscal 2018. For more information on the ENCQOR grant, see Note
18
to our Condensed Consolidated Financial Statements included in Item 1 of Part I of this report;
|
|
•
|
The
$14.8 million
of cash
provided by
accounts payable, accruals and other obligations during the first
nine
months of fiscal
2018
primarily reflects increased inventory purchases at the end of the third quarter of fiscal 2018, partially offset by the timing of bonus payments to employees under our annual cash incentive compensation plan; and
|
|
•
|
The
$4.7 million
of cash
used in
deferred revenue during the first
nine
months of fiscal
2018
represents a decrease in advanced payments received from customers prior to revenue recognition.
|
|
|
Nine months ended
|
||
|
|
July 31, 2018
|
||
|
3.75% Convertible Senior Notes due October 15, 2018 (Original)
(1)
|
$
|
1,149
|
|
|
3.75% Convertible Senior Notes due October 15, 2018 (New)
(1)
|
5,414
|
|
|
|
4.0% Convertible Senior Notes due December 15, 2020
(2)
|
7,500
|
|
|
|
Term Loan due January 30, 2022
(3)
|
12,483
|
|
|
|
Interest rate swaps
(4)
|
270
|
|
|
|
ABL Credit Facility
(5)
|
1,149
|
|
|
|
Capital leases
|
3,596
|
|
|
|
Cash paid during period
|
$
|
31,561
|
|
|
(1)
|
Interest on our outstanding Original Notes and our New Notes is payable on April 15 and October 15 of each year.
|
|
(2)
|
Interest on our outstanding 4.0% Convertible Senior Notes due December 15, 2020 is payable on June 15 and December 15 of each year.
|
|
(3)
|
Interest on the Term Loan due January 30, 2022 (the “2022 Term Loan”) is payable periodically based on the underlying market index rate selected for borrowing. The 2022 Term Loan bears interest at LIBOR plus a spread of 2.5% subject to a minimum LIBOR rate of 0.75%. As of the end of the
third
quarter of fiscal 2018, the interest rate on the 2022 Term Loan was 4.59%.
|
|
(4)
|
Our interest rate swaps fix
82%
and
77%
of the principal value of the 2022 Term Loan from July 2018 through June 2020 and June 2020 through January 2021, respectively. The fixed rate on the amounts hedged during the periods described above will be
4.25%
and
4.75%
, respectively.
|
|
(5)
|
During the first
nine
months of fiscal
2018
, we utilized the ABL Credit Facility to collateralize certain standby letters of credit and paid
$1.1 million
in commitment fees, interest expense and other administrative charges relating to our ABL Credit Facility.
|
|
Period
|
|
Total Number of Shares Purchased (1)
|
|
Average Price Paid Per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)
|
|
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
(in Thousands)
|
||||||
|
May 1, 2018 to May 31, 2018
|
|
467,222
|
|
|
$
|
25.55
|
|
|
467,222
|
|
|
$
|
248,914
|
|
|
June 1, 2018 to June 30, 2018
|
|
481,037
|
|
|
$
|
24.45
|
|
|
481,037
|
|
|
$
|
237,153
|
|
|
July 1, 2018 to July 31, 2018
|
|
452,626
|
|
|
$
|
26.38
|
|
|
452,626
|
|
|
$
|
225,212
|
|
|
Total
|
|
1,400,885
|
|
|
$
|
25.44
|
|
|
1,400,885
|
|
|
|
||
|
|
|
|
31.1
|
|
|
31.2
|
|
|
32.1
|
|
|
32.2
|
|
|
101.INS
|
XBRL Instance Document
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
|
|
Ciena Corporation
|
||
|
Date:
|
September 5, 2018
|
By:
|
/s/ Gary B. Smith
|
|
|
|
|
|
Gary B. Smith
|
|
|
|
|
|
President, Chief Executive Officer
and Director
(Duly Authorized Officer)
|
|
|
|
|
|
||
|
Date:
|
September 5, 2018
|
By:
|
/s/ James E. Moylan, Jr.
|
|
|
|
|
|
James E. Moylan, Jr.
|
|
|
|
|
|
Senior Vice President, Finance and
Chief Financial Officer
(Principal Financial Officer)
|
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
| FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
|---|
| DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
|---|
No information found
No Customers Found
Price
Yield
| Owner | Position | Direct Shares | Indirect Shares |
|---|