EARNINGS 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 July 31,				Nine Months Ended July 31,
Numerator	2017		2016		2017		2016
Net income	$	60,010	$	33,546	$	101,897	$	35,997
Add: Interest expense associated with 0.875% Convertible Senior Notes due 2017	246		1,326		1,343		—
Add: Interest expense associated with 3.75% Convertible Senior Notes due 2018	3,572		3,572		10,750		—
Add: Interest expense associated with 4.0% Convertible Senior Notes due 2020	3,323		—		—		—
Net income used to calculate Diluted EPS	$	67,151	$	38,444	$	113,990	$	35,997



	Quarter Ended July 31,		Nine Months Ended July 31,
Denominator	2017	2016	2017	2016
Basic weighted average shares outstanding	142,464	138,881	141,631	137,835
Add: Shares underlying outstanding stock options and restricted stock units and issuable under employee stock purchase plan	1,386	895	1,401	1,218
Add: Shares underlying 0.875% Convertible Senior Notes due 2017	1,708	12,217	4,043	—
Add: Shares underlying 3.75% Convertible Senior Notes due 2018	17,356	17,356	17,356	—
Add: Shares underlying 4.0% Convertible Senior Notes due 2020	9,198	—	—	—
Dilutive weighted average shares outstanding	172,112	169,349	164,431	139,053



	Quarter Ended July 31,				Nine Months Ended July 31,
EPS	2017		2016		2017		2016
Basic EPS	$	0.42	$	0.24	$	0.72	$	0.26
Diluted EPS	$	0.39	$	0.23	$	0.69	$	0.26

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 July 31,		Nine Months Ended July 31,
	2017	2016	2017	2016
Shares underlying stock options and restricted stock units	682	2,082	988	2,089
0.875% Convertible Senior Notes due June 15, 2017	—	—	—	12,571
3.75% Convertible Senior Notes due October 15, 2018	—	—	—	17,356
4.0% Convertible Senior Notes due December 15, 2020	—	9,198	9,198	9,198
Total shares excluded due to anti-dilutive effect	682	11,280	10,186	41,214