Ciena’s disaggregated revenue as presented below depicts the nature, amount, and timing of revenue and cash flows for similar groupings of Ciena’s various offerings. The sales cycle, contractual obligations, customer requirements, and go-to-market strategies may differ across Ciena’s product lines, resulting in different economic risk profiles for each line.


	Quarter Ended April 30, 2022
	Networking Platforms		Platform Software and Services		Blue Planet Automation Software and Services		Global Services		Total
Product lines:
Converged Packet Optical	$	625,294	$	—	$	—	$	—	$	625,294
Routing and Switching	109,186		—		—		—		109,186
Platform Software and Services	—		69,157		—		—		69,157
Blue Planet Automation Software and Services	—		—		16,881		—		16,881
Maintenance Support and Training	—		—		—		74,019		74,019
Installation and Deployment	—		—		—		41,430		41,430
Consulting and Network Design	—		—		—		13,260		13,260
Total revenue by product line	$	734,480	$	69,157	$	16,881	$	128,709	$	949,227

Timing of revenue recognition:
Products and services at a point in time	$	734,480	$	21,743	$	4,036	$	13,469	773,728
Services transferred over time	—		$	47,414	$	12,845	$	115,240	175,499
Total revenue by timing of revenue recognition	$	734,480	$	69,157	$	16,881	$	128,709	$	949,227


	Quarter Ended May 01, 2021
	Networking Platforms		Platform Software and Services		Blue Planet Automation Software and Services		Global Services		Total
Product lines:
Converged Packet Optical	$	573,657	$	—	$	—	$	—	$	573,657
Routing and Switching	63,628		—		—		—		63,628
Platform Software and Services	—		56,688		—		—		56,688
Blue Planet Automation Software and Services	—		—		23,958		—		23,958
Maintenance Support and Training	—		—		—		70,418		70,418
Installation and Deployment	—		—		—		37,999		37,999
Consulting and Network Design	—		—		—		7,579		7,579
Total revenue by product line	$	637,285	$	56,688	$	23,958	$	115,996	$	833,927

Timing of revenue recognition:
Products and services at a point in time	$	637,285	$	20,765	$	10,765	$	1,411	$	670,226
Services transferred over time	—		35,923		13,193		114,585		163,701
Total revenue by timing of revenue recognition	$	637,285	$	56,688	$	23,958	$	115,996	$	833,927


	Six Months Ended April 30, 2022
	Networking Platforms		Platform Software and Services		Blue Planet Automation Software and Services		Global Services		Total
Product lines:
Converged Packet Optical	$	1,166,230	$	—	$	—	$	—	$	1,166,230
Routing and Switching	194,896		—		—		—		194,896
Platform Software and Services	—		142,074		—		—		142,074
Blue Planet Automation Software and Services	—		—		37,992		—		37,992
Maintenance Support and Training	—		—		—		146,509		146,509
Installation and Deployment	—		—		—		81,800		81,800
Consulting and Network Design	—		—		—		24,169		24,169
Total revenue by product line	$	1,361,126	$	142,074	$	37,992	$	252,478	$	1,793,670

Timing of revenue recognition:
Products and services at a point in time	$	1,361,126	$	51,424	$	12,810	$	21,960	$	1,447,320
Services transferred over time	—		90,650		25,182		230,518		346,350
Total revenue by timing of revenue recognition	$	1,361,126	$	142,074	$	37,992	$	252,478	$	1,793,670


	Six Months Ended May 01, 2021
	Networking Platforms		Platform Software and Services		Blue Planet Automation Software and Services		Global Services		Total
Product lines:
Converged Packet Optical	$	1,085,981	$	—	$	—	$	—	$	1,085,981
Routing and Switching	127,934		—		—		—		127,934
Platform Software and Services	—		106,527		—		—		106,527
Blue Planet Automation Software and Services	—		—		40,892		—		40,892
Maintenance Support and Training	—		—		—		138,049		138,049
Installation and Deployment	—		—		—		77,610		77,610
Consulting and Network Design	—		—		—		14,064		14,064
Total revenue by product line	$	1,213,915	$	106,527	$	40,892	$	229,723	$	1,591,057

Timing of revenue recognition:
Products and services at a point in time	$	1,213,915	$	36,828	$	15,939	$	3,268	$	1,269,950
Services transferred over time	—		69,699		24,953		226,455		321,107
Total revenue by timing of revenue recognition	$	1,213,915	$	106,527	$	40,892	$	229,723	$	1,591,057

Ciena reports its sales geographically using the following markets: (i) Americas; (ii) Europe, Middle East and Africa (“EMEA”); and (iii) Asia Pacific, Japan and India (“APAC”). Americas includes activities in North America and South America. Within each geographic area, Ciena maintains specific teams or personnel that focus on a particular region, country, customer or market vertical. These teams include sales management, account salespersons and sales engineers, as well as services professionals and commercial management personnel. The following table reflects Ciena’s geographic distribution of revenue based principally on the relevant location for Ciena’s delivery of products and performance of services.


	Quarter Ended				Six Months Ended
	April 30,		May 1,		April 30,		May 1,
	2022		2021		2022		2021
Geographic distribution:
Americas	$	700,840	$	587,475	$	1,295,984	$	1,084,086
EMEA	145,106		155,054		295,891		310,472
APAC	103,281		91,398		201,795		196,499
Total revenue by geographic distribution	$	949,227	$	833,927	$	1,793,670	$	1,591,057

Ciena’s revenue includes $642.2 million and $518.6 million of United States revenue for the second quarter of fiscal 2022 and 2021, respectively. For the six months ended April 30, 2022 and May 1, 2021, United States revenue was $1.2 billion and $1.0 billion, respectively. No other country accounted for 10% or more of total revenue for the periods presented above.

•Converged Packet Optical - includes the 6500 Packet-Optical Platform, the Waveserver® stackable interconnect system, the 6500 Reconfigurable Line System (RLS), the 5400 family of Packet-Optical Platforms, and the Coherent ELS open line system (OLS). This product line also includes the Z-Series Packet-Optical Platform and Optical Microsystems products.

•Routing and Switching - includes the 3900 family of service delivery platforms and the 5000 family of service aggregation. This product line also includes the 6500 Packet Transport System (PTS), which combines packet switching, control plane operation, and integrated optics, the 8100 Coherent IP networking platforms, and the 8700 Packetwave Platform. This product line also includes the Vyatta (as defined in Note 4 below) virtual routing and switching products acquired from AT&T during the first quarter of fiscal 2022.

The Networking Platforms segment also includes sales of operating system software and enhanced software features embedded in each of the product lines above. Revenue from this segment is included in product revenue on the Condensed Consolidated Statements of Operations. Operating system software and enhanced software features embedded in Ciena hardware are each considered distinct performance obligations for which the revenue is generally recognized upfront at a point in time upon transfer of control.

•Platform Software and Services provides analytics, data, and planning tools to assist customers in managing Ciena’s Networking Platforms products in their networks. Ciena’s platform software includes its Manage, Control and Plan (MCP) domain controller solution and its OneControl Unified Management System, as well as planning tools and a number of legacy software solutions that support Ciena’s installed base of network solutions. Platform software-related services revenue includes sales of subscription, installation, support, and consulting services related to Ciena’s software platforms, operating system software and enhanced software features embedded in each of the Networking Platforms product lines described above. Revenue from the software portion of this segment is included in product revenue on the Condensed Consolidated Statements of Operations. Revenue from services portions of this segment is included in services revenue on the Condensed Consolidated Statements of Operations.

•Blue Planet® Automation Software and Services is a comprehensive, micro-services, standards-based open software suite, together with related services, that enables customers to implement large-scale software and IT-led operations support system (OSS) transformations by transforming legacy networks into “service ready” networks, accelerating the creation, delivery and lifecycle management of new, cloud-based services. Ciena’s Blue Planet Automation Platform includes multi-domain service orchestration (MDSO), inventory management (BPI), route optimization and analysis (ROA), network function virtualization orchestration (NFVO), and unified assurance and analytics (UAA). Services revenue includes sales of subscription, installation, support, consulting and design services related to Ciena’s Blue Planet Automation Platform. Revenue from the software portion of this segment is included in product revenue on the Condensed Consolidated Statements of Operations. Revenue from services portions of this segment is included in services revenue on the Condensed Consolidated Statements of Operations.

Ciena’s software platform revenue typically reflects either perpetual or term-based software licenses, and these sales are considered distinct performance obligations in which revenue is generally recognized upfront at a point in time upon transfer of control. Revenue from software subscription and support is recognized ratably over the period during which the services are performed. Revenue from professional services for solution customization, software and solution support services, consulting and design, and build-operate-transfer services relating to Ciena’s software offerings is recognized over time with Ciena applying the input method to determine the amount of revenue to be recognized in a given period.

•Global Services revenue reflects sales of a broad range of Ciena’s services for maintenance support and training, installation and deployment, and consulting and network design activities. Revenue from this segment is included in services revenue on the Condensed Consolidated Statements of Operations.

Ciena’s Global Services are considered a distinct performance obligation for which revenue is generally recognized over time. Revenue from maintenance support is recognized ratably over the period during which the services are performed. Revenue from installation and deployment services and consulting and network design services is also recognized over time with Ciena applying the input method to determine the amount of revenue to be recognized in a given period. Revenue from training services is generally recognized at a point in time upon completion of the service.

The following table provides information about receivables, contract assets and contract liabilities (deferred revenue) from contracts with customers (in thousands):


	Balance at April 30, 2022		Balance at October 30, 2021
Accounts receivable, net	$	774,896	$	884,958
Contract assets for unbilled accounts receivable, net	$	144,344	$	101,355
Deferred revenue	$	218,769	$	175,464

Ciena’s contract assets represent unbilled accounts receivable, net where transfer of a product or service has occurred but invoicing is conditional upon completion of future performance obligations. These amounts are primarily related to installation and deployment and professional services arrangements where transfer of control has occurred, but Ciena has not yet invoiced the customer. Contract assets are included in prepaid expenses and other in the Condensed Consolidated Balance Sheets. See Note 12 below.

Contract liabilities consist of deferred revenue and represent advanced payments against non-cancelable customer orders received prior to revenue recognition. Ciena recognized approximately $82.0 million and $78.0 million of revenue during the first six months of fiscal 2022 and 2021, respectively, that was included in the deferred revenue balance as of October 30, 2021 and October 31, 2020, respectively. Revenue recognized due to changes in transaction price from performance obligations satisfied or partially satisfied in previous periods was immaterial during the six months ended April 30, 2022 and May 1, 2021.

Capitalized contract acquisition costs consist of deferred sales commissions, and were $32.5 million and $27.6 million as of April 30, 2022 and October 30, 2021, respectively. Capitalized contract acquisition costs were included in (i) prepaid expenses and other and (ii) other long-term assets. The amortization expense associated with these costs was $14.1 million and $10.7 million during the first six months of fiscal 2022 and 2021, respectively, and was included in selling and marketing expense on the Condensed Consolidated Statement of Operations.

Remaining Performance Obligations (“RPO”) are comprised of non-cancelable customer purchase orders for products and services that are awaiting transfer of control for revenue recognition under the applicable contract terms. As of April 30, 2022, the aggregate amount of RPO was $2.7 billion. As of April 30, 2022, Ciena expects approximately 90% of the RPO to be recognized as revenue within the next 12 months.