EARNINGS (LOSS) PER SHARE CALCULATION

3 Months Ended

Jan. 31, 2016

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 January 31,
Numerator	2016			2015
Net loss	$	(11,546	)	$	(18,779	)



	Quarter Ended January 31,
Denominator	2016	2015
Basic weighted average shares outstanding	136,675	107,773
Dilutive weighted average shares outstanding	136,675	107,773



	Quarter Ended January 31,
EPS	2016			2015
Basic EPS	$	(0.08	)	$	(0.17	)
Diluted EPS	$	(0.08	)	$	(0.17	)

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



	Quarter Ended January 31,
	2016	2015
Shares underlying stock options and restricted stock units	3,565	3,899
4.0% Convertible Senior Notes due March 15, 2015	—	9,198
0.875% Convertible Senior Notes due June 15, 2017	12,912	13,108
3.75% Convertible Senior Notes due October 15, 2018	17,355	17,355
4.0% Convertible Senior Notes due December 15, 2020	9,198	9,198
Total shares excluded due to anti-dilutive effect	43,030	52,758