| 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 per common share (“Basic EPS”) and the diluted net income 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 April 30, | | Six Months Ended April 30, | Numerator | 2016 | | 2015 | | 2016 | | 2015 | Net income | $ | 13,997 |
| | $ | 20,653 |
| | $ | 2,451 |
| | $ | 1,874 |
| Add: Interest expense associated with 0.875% Convertible Senior Notes due 2017 | — |
| | 1,387 |
| | — |
| | — |
| Net income used to calculate Diluted EPS | $ | 13,997 |
| | $ | 22,040 |
| | $ | 2,451 |
| | $ | 1,874 |
|
| | | | | | | | | | | | | | Quarter Ended April 30, | | Six Months Ended April 30, | Denominator | 2016 | | 2015 | | 2016 | | 2015 | Basic weighted average shares outstanding | 137,950 |
| | 113,555 |
| | 137,313 |
| | 110,578 |
| Add: Shares underlying outstanding stock options and restricted stock units and issuable under employee stock purchase plan | 939 |
| | 1,354 |
| | 1,380 |
| | 1,184 |
| Add: Shares underlying 0.875% Convertible Senior Notes due 2017 | — |
| | 13,108 |
| | — |
| | — |
| Dilutive weighted average shares outstanding | 138,889 |
| | 128,017 |
| | 138,693 |
| | 111,762 |
|
| | | | | | | | | | | | | | | | | | Quarter Ended April 30, | | Six Months Ended April 30, | EPS | 2016 | | 2015 | | 2016 | | 2015 | Basic EPS | $ | 0.10 |
| | $ | 0.18 |
| | $ | 0.02 |
| | $ | 0.02 |
| Diluted EPS | $ | 0.10 |
| | $ | 0.17 |
| | $ | 0.02 |
| | $ | 0.02 |
|
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 April 30, | | Six Months Ended April 30, | | 2016 | | 2015 | | 2016 | | 2015 | Shares underlying stock options and restricted stock units | 2,439 |
| | 961 |
| | 2,092 |
| | 1,923 |
| 4.0% Convertible Senior Notes due March 15, 2015 | — |
| | 4,346 |
| | — |
| | 6,772 |
| 0.875% Convertible Senior Notes due June 15, 2017 | 12,583 |
| | — |
| | 12,748 |
| | 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 |
| | 9,198 |
| | 9,198 |
| Total shares excluded due to anti-dilutive effect | 41,576 |
| | 31,861 |
| | 41,394 |
| | 48,357 |
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