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REVENUE
 12 Months Ended
Oct. 29, 2022
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
Disaggregation of Revenue

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 for each of its product categories, resulting in different economic risk profiles for each category.

The tables below set forth Ciena’s disaggregated revenue for the respective period (in thousands):
Year Ended October 29, 2022
Networking PlatformsPlatform Software and ServicesBlue Planet Automation Software and ServicesGlobal ServicesTotal
Product lines:
Converged Packet Optical$2,379,931 $— $— $— $2,379,931 
Routing and Switching398,439 — — — 398,439 
Platform Software and Services— 277,191 — — 277,191 
Blue Planet Automation Software and Services— — 76,567 — 76,567 
Maintenance Support and Training— — — 292,375 292,375 
Installation and Deployment— — — 157,443 157,443 
Consulting and Network Design— — — 50,715 50,715 
Total revenue by product line$2,778,370 $277,191 $76,567 $500,533 $3,632,661 
Timing of revenue recognition:
Products and services at a point in time$2,778,370 $85,691 $25,540 $44,091 $2,933,692 
Products and services transferred over time— 191,500 51,027 456,442 698,969 
Total revenue by timing of revenue recognition$2,778,370 $277,191 $76,567 $500,533 $3,632,661 

Year Ended October 30, 2021
Networking PlatformsPlatform Software and ServicesBlue Planet Automation Software and ServicesGlobal ServicesTotal
Product lines:
Converged Packet Optical
$2,553,509 $— $— $— $2,553,509 
Routing and Switching271,796 — — — 271,796 
Platform Software and Services
— 229,588 — — 229,588 
Blue Planet Automation Software and Services
— — 77,247 — 77,247 
Maintenance Support and Training
— — — 283,350 283,350 
Installation and Deployment
— — — 171,489 171,489 
Consulting and Network Design
— — — 33,705 33,705 
Total revenue by product line
$2,825,305 $229,588 $77,247 $488,544 $3,620,684 
Timing of revenue recognition:
Products and services at a point in time
$2,825,305 $80,359 $27,621 $14,923 $2,948,208 
Products and services transferred over time
— 149,229 49,626 473,621 672,476 
Total revenue by timing of revenue recognition
$2,825,305 $229,588 $77,247 $488,544 $3,620,684 
Year Ended October 31, 2020
Networking PlatformsPlatform Software and ServicesBlue Planet Automation Software and ServicesGlobal ServicesTotal
Product lines:
Converged Packet Optical
$2,547,647 $— $— $— $2,547,647 
Routing and Switching267,416 — — — 267,416 
Platform Software and Services
— 197,809 — — 197,809 
Blue Planet Automation Software and Services
— — 62,632 — 62,632 
Maintenance Support and Training
— — — 269,354 269,354 
Installation and Deployment
— — — 152,003 152,003 
Consulting and Network Design
— — — 35,296 35,296 
Total revenue by product line
$2,815,063 $197,809 $62,632 $456,653 $3,532,157 
Timing of revenue recognition:
Products and services at a point in time
$2,815,063 $69,099 $19,583 $14,363 $2,918,108 
Products and services transferred over time
— 128,710 43,049 442,290 614,049 
Total revenue by timing of revenue recognition
$2,815,063 $197,809 $62,632 $456,653 $3,532,157 


Ciena reports its sales geographically around the following markets: (i) the United States, Canada, the Caribbean and Latin America (“Americas”); (ii) Europe, Middle East and Africa (“EMEA”); and (iii) Asia Pacific, Japan and India (“APAC”). 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 principally based on the relevant location for Ciena’s delivery of products and performance of services.

For the periods below, Ciena’s geographic distribution of revenue was as follows (in thousands):
Year Ended
 October 29, 2022October 30, 2021October 31, 2020
Geographic distribution:
Americas$2,636,840 $2,525,619 $2,469,278 
EMEA
555,215 670,462 591,468 
APAC
440,606 424,603 471,411 
Total revenue by geographic distribution
$3,632,661 $3,620,684 $3,532,157 
Ciena’s revenue includes United States revenue of $2.42 billion for fiscal 2022, $2.27 billion for fiscal 2021 and $2.25 billion for fiscal 2020. No other country accounted for 10% or more of total revenue for the periods presented above.

For the periods below, the only customers that accounted for at least 10% of Ciena’s revenue were as follows (in thousands):
 October 29, 2022October 30, 2021October 31, 2020
AT&T$433,418 $447,403 $373,163 
Verizon402,787 n/an/a
Total$836,205 $447,403 $373,163 
________________________________
n/aDenotes revenue representing less than 10% of total revenue for the period

The customers identified above purchased products and services from each of Ciena’s operating segments.
While Ciena has benefited from the diversification of its business and customer base, its ten largest customers contributed 56.3% of fiscal 2022 revenue, 55.5% of fiscal 2021 revenue and 54.5% of fiscal 2020 revenue.

◦Networking Platforms revenue reflects sales of Ciena’s Converged Packet Optical and Routing and Switching product lines.
▪Converged Packet Optical - includes the 6500 Packet-Optical Platform, the Waveserver® modular 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 includes the WL5n 100G-400G coherent pluggable transceivers. This product line also includes sales of the Z-Series Packet-Optical Platform.
▪Routing and Switching - includes the 3000 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 Routing 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 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 offerings provide domain control management, analytics, data and planning tools and applications to assist customers in managing their networks, including by creating more efficient operations and more proactive visibility into their networks. Ciena’s platform software includes its MCP domain controller solution, its suite of MCP applications, 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 above. Revenue from the software portion of this segment is included in product revenue on the Consolidated Statements of Operations. Revenue from services portions of this segment is included in services revenue on the Consolidated Statements of Operations.

◦Blue Planet® Automation Software and Services is a comprehensive, cloud native, and standards-based software portfolio, together with related services, that enables customers to realize digital transformation through the automation of the services lifecycle. 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 Consolidated Statements of Operations. Revenue from services portions of this segment is included in services revenue on the 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 where 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 Consolidated Statements of Operations.
Ciena’s Global Services are considered a distinct performance obligation where 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 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.
Contract Balances
The following table provides information about receivables, contract assets and contract liabilities (deferred revenue) from contracts with customers (in thousands):
Balance at October 29, 2022Balance at October 30, 2021
Accounts receivable, net$920,772 $884,958 
Contract assets for unbilled accounts receivable, net$156,039 $101,355 
Deferred revenue$200,235 $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 Consolidated Balance Sheets. See Note 11 below.

Contract liabilities consist of deferred revenue and represent advanced payments against non-cancelable customer orders received prior to revenue recognition. Ciena recognized approximately $111.3 million and $106.5 million of revenue during fiscal 2022 and 2021, respectively, that was included in the deferred revenue balance at October 29, 2022 and October 30, 2021, respectively. Revenue recognized due to changes in transaction price from performance obligations satisfied or partially satisfied in previous periods was immaterial during fiscal 2022 and 2021.

Capitalized Contract Acquisition Costs

Capitalized contract acquisition costs consist of deferred sales commissions and were $39.7 million and $27.6 million as of October 29, 2022 and October 30, 2021, respectively, and are included in prepaid expenses and other and other long-term assets. The amortization expense associated with these costs was $27.3 million and $24.6 million during fiscal 2022 and fiscal 2021, respectively, and are included in sales and marketing expense on the Consolidated Statements of Operations.

Remaining Performance Obligations
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 October 29, 2022, the aggregate amount of RPO was $2.8 billion. As of October 29, 2022, Ciena expects approximately 91% of the RPO to be recognized as revenue within the next twelve months.