Operating Segments and Geographic Information (Tables)

9 Months Ended

Mar. 30, 2019

Schedule of information on reportable segments

nformation on the Company’s reportable segments (in millions):



	Three Months Ended March 30, 2019
	Network and Service Enablement
	Network Enablement			Service Enablement			Network and Service Enablement			Optical Security and Performance Products			Other Items			Consolidated GAAP Measures
Product revenue	$	160.8		$	11.6		$	172.4		$	59.7		$	—		$	232.1
Service revenue	19.7			13.3			33.0			0.1			—			33.1
Net revenue	$	180.5		$	24.9		$	205.4		$	59.8		$	—		$	265.2

Gross profit	$	115.8		$	15.9		$	131.7		$	30.8		$	(9.0	)	$	153.5
Gross margin	64.2		%	63.9		%	64.1		%	51.5		%				57.9		%

Operating income							$	20.7		$	18.3		$	(31.1	)	$	7.9
Operating margin							10.1		%	30.6		%				3.0		%



	Three Months Ended March 31, 2018
	Network and Service Enablement
	Network Enablement			Service Enablement			Network and Service Enablement			Optical Security and Performance Products			Other Items			Consolidated GAAP Measures
Product revenue	$	116.0		$	15.4		$	131.4		$	61.8		$	—		$	193.2
Service revenue	10.5			14.5			25.0			0.5			—			25.5
Net revenue	$	126.5		$	29.9		$	156.4		$	62.3		$	—		$	218.7

Gross profit	$	80.4		$	20.8		$	101.2		$	32.8		$	(10.7	)	$	123.3
Gross margin	63.6		%	69.6		%	64.7		%	52.6		%				56.4		%

Operating income							$	9.5		$	23.7		$	(32.8	)	$	0.4
Operating margin							6.1		%	38.0		%				0.2		%



	Three Months Ended
	March 30, 2019			March 31, 2018
Corporate reconciling items impacting gross profit:
Total segment gross profit	$	162.5		$	134.0
Stock-based compensation	(1.1		)	(0.8		)
Amortization of intangibles	(7.9		)	(6.2		)
Other charges unrelated to core operating performance ⁽¹⁾	—			(3.7		)
GAAP gross profit	$	153.5		$	123.3

Corporate reconciling items impacting operating income:
Total segment operating income	$	39.0		$	33.2
Stock-based compensation	(10.8		)	(7.6		)
Amortization of intangibles	(17.1		)	(10.7		)
Other charges unrelated to core operating performance ⁽²⁾	(2.3		)	(14.2		)
Restructuring and related charges	(0.9		)	(0.3		)
GAAP operating income	$	7.9		$	0.4


⁽¹⁾	During the three months ended March 31, 2018, other charges unrelated to core operating performance primarily consisted of acquisition and integration related expenses such as amortization of acquisition related inventory step-up, site consolidations and reorganizations.

⁽²⁾

During the three months ended March 30, 2019 and March 31, 2018, other charges unrelated to core operating performance primarily consisted of acquisition and integration related transformational initiatives such as the implementation of simplified automated processes, site consolidation and reorganizations, amortization of acquisition related inventory step-up, and loss on disposal of long-lived assets.



	Nine Months Ended March 30, 2019
	Network and Service Enablement
	Network Enablement			Service Enablement			Network and Service Enablement			Optical Security and Performance Products			Other Items			Consolidated GAAP Measures
Product revenue	$	486.7		$	39.0		$	525.7		$	220.3		$	—		$	746.0
Service revenue	53.8			40.3			94.1			0.5			—			94.6
Net revenue	$	540.5		$	79.3		$	619.8		$	220.8		$	—		$	840.6

Gross profit	$	344.4		$	54.5		$	398.9		$	112.0		$	(29.0	)	$	481.9
Gross margin	63.7		%	68.7		%	64.4		%	50.7		%				57.3		%

Operating income							$	69.9		$	76.8		$	(107.1	)	$	39.6
Operating margin							11.3		%	34.8		%				4.7		%



	Nine Months Ended March 31, 2018
	Network and Service Enablement
	Network Enablement			Service Enablement			Network and Service Enablement			Optical Security and Performance Products			Other Items			Consolidated GAAP Measures
Product revenue	$	333.3		$	43.1		$	376.4		$	163.2		$	—		$	539.6
Service revenue	26.8			46.9			73.7			1.7			—			75.4
Net revenue	$	360.1		$	90.0		$	450.1		$	164.9		$	—		$	615.0

Gross profit	$	225.1		$	63.2		$	288.3		$	90.4		$	(23.3	)	$	355.4
Gross margin	62.5		%	70.2		%	64.1		%	54.8		%				57.8		%

Operating income							$	24.6		$	63.3		$	(73.9	)	$	14.0
Operating margin							5.5		%	38.4		%				2.3		%



	Nine Months Ended
	March 30, 2019			March 31, 2018
Corporate reconciling items impacting gross profit:
Total segment gross profit	$	510.9		$	378.7
Stock-based compensation	(2.8		)	(2.4		)
Amortization of intangibles	(25.8		)	(14.4		)
Other charges unrelated to core operating performance ⁽¹⁾	(0.4		)	(6.5		)
GAAP gross profit	$	481.9		$	355.4

Corporate reconciling items impacting operating income:
Total segment operating income	$	146.7		$	87.9
Stock-based compensation	(28.5		)	(22.8		)
Amortization of intangibles	(55.2		)	(25.4		)
Other charges unrelated to core operating performance ⁽²⁾	(7.4		)	(21.4		)
Restructuring and related charges	(16.0		)	(4.3		)
GAAP operating income (loss) from continuing operations	$	39.6		$	14.0


⁽¹⁾	During the nine months ended March 30, 2019 and March 31, 2018, other charges unrelated to core operating performance primarily consisted of acquisition and integration related expenses such as amortization of acquisition related inventory step-up, site consolidations and reorganizations.

⁽²⁾

During the nine months ended March 30, 2019 and March 31, 2018, other charges unrelated to core operating performance primarily consisted of acquisition and integration related transformational initiatives such as the implementation of simplified automated processes, site consolidation and reorganizations, amortization of acquisition related inventory step-up, and loss on disposal of long-lived assets.

Schedule of revenue by geographic regions

The following table presents net revenue by the three geographic regions we operate in and net revenue from countries that exceeded 10% of our total net revenue, (in millions):



	Three Months Ended
	March 30, 2019						March 31, 2018
	Product Revenue		Service Revenue		Total		Product Revenue		Service Revenue		Total
Americas:
United States	$	63.4	$	13.7	$	77.1	$	66.8	$	12.1	$	78.9
Other Americas	14.4		3.7		18.1		13.9		3.0		16.9
Total Americas	$	77.8	$	17.4	$	95.2	$	80.7	$	15.1	$	95.8

Asia-Pacific:
Greater China	$	36.5	$	2.9	$	39.4	$	37.7	$	0.5	$	38.2
Other Asia	41.0		2.9		43.9		22.6		2.7		25.3
Total Asia-Pacific	$	77.5	$	5.8	$	83.3	$	60.3	$	3.2	$	63.5

EMEA:
Switzerland	$	23.9	$	—	$	23.9	$	15.9	$	—	$	15.9
Other EMEA	52.9		9.9		62.8		36.3		7.2		43.5
Total EMEA	$	76.8	$	9.9	$	86.7	$	52.2	$	7.2	$	59.4

Total net revenue	$	232.1	$	33.1	$	265.2	$	193.2	$	25.5	$	218.7



	Nine Months Ended
	March 30, 2019						March 31, 2018
	Product Revenue		Service Revenue		Total		Product Revenue		Service Revenue		Total
Americas:
United States	$	213.3	$	40.7	$	254.0	$	207.9	$	38.9	$	246.8
Other Americas	49.6		10.8		60.4		46.0		11.6		57.6
Total Americas	$	262.9	$	51.5	$	314.4	$	253.9	$	50.5	$	304.4

Asia-Pacific:
Greater China	$	160.0	$	5.2	$	165.2	$	88.8	$	1.5	$	90.3
Other Asia	107.4		10.0		117.4		51.6		4.7		56.3
Total Asia-Pacific	$	267.4	$	15.2	$	282.6	$	140.4	$	6.2	$	146.6

EMEA:
Switzerland	$	72.6	$	—	$	72.6	$	56.4	$	—	$	56.4
Other EMEA	143.1		27.9		171.0		88.9		18.7		107.6
Total EMEA	$	215.7	$	27.9	$	243.6	$	145.3	$	18.7	$	164.0

Total net revenue	$	746.0	$	94.6	$	840.6	$	539.6	$	75.4	$	615.0