Earnings (Loss) Per Share Calculation

12 Months Ended

Oct. 31, 2020

The following tables (in thousands except per share amounts) reconcile Basic EPS and 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.

Numerator


	Year Ended
	October 31, 2020		November 2, 2019		November 3, 2018
Net income (loss)	$	361,291	$	253,434	$	(344,690)
Less: Loss on fair value of debt conversion liability	—		—		(12,894)
Net income (loss) used to calculate Diluted EPS	$	361,291	$	253,434	$	(357,584)

Denominator


	Year Ended
	October 31, 2020	November 2, 2019	November 3, 2018
Basic weighted average shares outstanding	154,287	155,720	143,738
Add: Shares underlying outstanding stock options, employee stock purchase plan and restricted stock units	1,668	1,892	—
Diluted weighted average shares outstanding	155,955	157,612	143,738

EPS


	Year Ended
	October 31, 2020		November 2, 2019		November 3, 2018
Basic EPS	$	2.34	$	1.63	$	(2.40)
Diluted EPS	$	2.32	$	1.61	$	(2.49)

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 fiscal years indicated (in thousands):


	Year Ended
	October 31, 2020	November 2, 2019	November 3, 2018
Shares underlying stock options and restricted stock units	263	234	2,235
Add: Shares underlying 3.75% Convertible Senior Notes due 2018 (New Notes)	—	—	1,780
3.75% Convertible Senior Notes due October 15, 2018 (Original Notes)	—	—	2,883
4.0% Convertible Senior Notes due December 15, 2020	—	—	9,123
Total shares excluded due to anti-dilutive effect	263	234	16,021