Earnings Per Share Calculation

6 Months Ended

May 02, 2020

EARNINGS PER SHARE CALCULATION

The following tables (in thousands except per share amounts) reconcile basic net income per common share (“Basic EPS”) and 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 stock unit awards; and (iii) shares issuable under Ciena’s employee stock purchase plan and upon exercise of outstanding stock options, using the treasury stock method.



	Quarter Ended				Six Months Ended
	May 2,		May 4,		May 2,		May 4,
Numerator	2020		2019		2020		2019
Net income used to calculate Basic and Diluted EPS	$	91,655	$	52,738	$	153,983	$	86,354



	Quarter Ended		Six Months Ended
	May 2,	May 4,	May 2,	May 4,
Denominator	2020	2019	2020	2019
Basic weighted average shares outstanding	153,858	156,170	154,099	156,244
Add: Shares underlying outstanding stock options and stock unit awards and issuable under employee stock purchase plan	1,283	2,119	1,344	1,967
Dilutive weighted average shares outstanding	155,141	158,289	155,443	158,211



	Quarter Ended				Six Months Ended
	May 2,		May 4,		May 2,		May 4,
EPS	2020		2019		2020		2019
Basic EPS	$	0.60	$	0.34	$	1.00	$	0.55
Diluted EPS	$	0.59	$	0.33	$	0.99	$	0.55

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		Six Months Ended
	May 2,	May 4,	May 2,	May 4,
	2020	2019	2020	2019
Shares underlying stock options and stock unit awards	203	283	467	257
Total shares excluded due to anti-dilutive effect	203	283	467	257