EARNINGS (LOSS) PER SHARE CALCULATION

3 Months Ended

Jan. 31, 2017

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 January 31,
Numerator	2017		2016
Net income (loss)	$	3,861	$	(11,546	)
Net income (loss) used to calculate Diluted EPS	$	3,861	$	(11,546	)



	Quarter Ended January 31,
Denominator	2017	2016
Basic weighted average shares outstanding	140,682	136,675
Add: Shares underlying outstanding stock options and restricted stock units and issuable under employee stock purchase plan	1,502	—
Dilutive weighted average shares outstanding	142,184	136,675



	Quarter Ended January 31,
EPS	2017		2016
Basic EPS	$	0.03	$	(0.08	)
Diluted EPS	$	0.03	$	(0.08	)

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,
	2017	2016
Shares underlying stock options and restricted stock units	1,556	3,565
0.875% Convertible Senior Notes due June 15, 2017	5,564	12,912
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	33,673	43,030