Earnings (Loss) Per Share Calculation

9 Months Ended

Jul. 31, 2014

Earnings Per Share [Abstract]

EARNINGS (LOSS) PER SHARE CALCULATION

EARNINGS (LOSS) PER SHARE CALCULATION

The following table (in thousands except per share amounts) is a reconciliation of the numerator and denominator of the basic net income (loss) per common share (“Basic EPS”) and the diluted net income (loss) per potential common share (“Diluted EPS”). Basic EPS is computed using the weighted average number of common shares outstanding. Diluted EPS is computed using the weighted average number of the following, in each case, to the extent the effect is not anti-dilutive: (i) common shares outstanding, (ii) shares issuable upon vesting of restricted stock units, (iii) shares issuable under Ciena’s employee stock purchase plan and upon exercise of outstanding stock options, using the treasury stock method, and (iv) shares underlying Ciena’s outstanding convertible notes.

	Quarter Ended July 31,					Nine Months Ended July 31,
Numerator	2013			2014		2013			2014
Net income (loss)	$	(1,231	)	$	16,160	$	(75,634	)	$	(9,934	)
Add: Interest expense associated with 0.875% convertible senior notes due 2017	—			1,384		$	—		—
Net income (loss) used to calculate Diluted EPS	$	(1,231	)	$	17,544	$	(75,634	)	$	(9,934	)

	Quarter Ended July 31,		Nine Months Ended July 31,
Denominator	2013	2014	2013	2014
Weighted average basic common shares outstanding	102,713	106,236	101,951	105,404
Add: Shares underlying outstanding stock options, employees stock purchase plan and restricted stock units	—	1,465	—	—
Add: Shares underlying 0.875% convertible senior notes due 2017	—	13,108	—	—
Weighted average dilutive potential common shares outstanding	102,713	120,809	101,951	105,404

	Quarter Ended July 31,					Nine Months Ended July 31,
EPS	2013			2014		2013			2014
Basic EPS	$	(0.01	)	$	0.15	$	(0.74	)	$	(0.09	)
Diluted EPS	$	(0.01	)	$	0.15	$	(0.74	)	$	(0.09	)

The following table summarizes the weighted average shares excluded from the calculation of the denominator for Basic and Diluted EPS due to their anti-dilutive effect for the periods indicated (in thousands):

	Quarter Ended July 31,		Nine Months Ended July 31,
	2013	2014	2013	2014
Shares underlying stock options and restricted stock units	3,599	1,123	3,727	3,205
0.25% Convertible Senior Notes due May 1, 2013	—	—	3,580	—
4.0% Convertible Senior Notes due March 15, 2015	9,198	9,198	10,990	9,198
0.875% Convertible Senior Notes due June 15, 2017	13,108	—	13,108	13,108
3.75% Convertible Senior Notes due October 15, 2018	17,356	17,356	17,356	17,356
4.0% Convertible Senior Notes due December 15, 2020	9,198	9,198	7,406	9,198
Total shares excluded due to anti-dilutive effect	52,459	36,875	56,167	52,065