EARNINGS PER SHARE CALCULATION (Tables)

6 Months Ended

Apr. 30, 2017

Reconciliation of numerator and denominator of Basic and Diluted Earnings Per Share

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	2017		2016		2017		2016
Net income	$	38,026	$	13,997	$	41,887	$	2,451
Add: Interest expense associated with 0.875% Convertible Senior Notes due 2017	495		—		1,097		—
Add: Interest expense associated with 3.75% convertible senior notes due 2018	3,588		—		—		—
Net income used to calculate Diluted EPS	$	42,109	$	13,997	$	42,984	$	2,451



	Quarter Ended April 30,		Six Months Ended April 30,
Denominator	2017	2016	2017	2016
Basic weighted average shares outstanding	141,743	137,950	141,223	137,313
Add: Shares underlying outstanding stock options and restricted stock units and issuable under employee stock purchase plan	1,317	939	1,409	1,380
Add: Shares underlying 0.875% Convertible Senior Notes due 2017	4,857	—	5,210	—
Add: Shares underlying 3.75% convertible senior notes due 2018	17,356	—	—	—
Dilutive weighted average shares outstanding	165,273	138,889	147,842	138,693



	Quarter Ended April 30,				Six Months Ended April 30,
EPS	2017		2016		2017		2016
Basic EPS	$	0.27	$	0.10	$	0.30	$	0.02
Diluted EPS	$	0.25	$	0.10	$	0.29	$	0.02

Weighted average shares excluded from calculation of denominator for Basic and Diluted EPS

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,
	2017	2016	2017	2016
Shares underlying stock options and restricted stock units	725	2,439	1,141	2,092
0.875% Convertible Senior Notes due June 15, 2017	—	12,583	—	12,748
3.75% Convertible Senior Notes due October 15, 2018	—	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	9,923	41,576	27,695	41,394