Ciena’s disaggregated revenue as presented below depicts the nature, amount, and timing of revenue for similar groupings of Ciena’s products and services. 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 27, 2024
	Networking Platforms		Platform Software and Services		Blue Planet Automation Software and Services		Global Services		Total
Product lines:
Optical Networking	$	560,224	$	—	$	—	$	—	$	560,224
Routing and Switching	116,034		—		—		—		116,034
Platform Software and Services	—		85,445		—		—		85,445
Blue Planet Automation Software and Services	—		—		14,434		—		14,434
Maintenance Support and Training	—		—		—		77,410		77,410
Installation and Deployment	—		—		—		43,785		43,785
Consulting and Network Design	—		—		—		13,494		13,494
Total revenue by product line	$	676,258	$	85,445	$	14,434	$	134,689	$	910,826

Timing of revenue recognition:
Products and services at a point in time	$	676,258	$	22,689	$	2,848	$	10,432	$	712,227
Services transferred over time	—		62,756		11,586		124,257		198,599
Total revenue by timing of revenue recognition	$	676,258	$	85,445	$	14,434	$	134,689	$	910,826


	Quarter Ended April 29, 2023
	Networking Platforms		Platform Software and Services		Blue Planet Automation Software and Services		Global Services		Total
Product lines:
Optical Networking	$	784,549	$	—	$	—	$	—	$	784,549
Routing and Switching	130,310		—		—		—		130,310
Platform Software and Services	—		69,443		—		—		69,443
Blue Planet Automation Software and Services	—		—		20,567		—		20,567
Maintenance Support and Training	—		—		—		73,160		73,160
Installation and Deployment	—		—		—		39,486		39,486
Consulting and Network Design	—		—		—		15,140		15,140
Total revenue by product line	$	914,859	$	69,443	$	20,567	$	127,786	$	1,132,655

Timing of revenue recognition:
Products and services at a point in time	$	914,859	$	13,447	$	7,329	$	15,412	$	951,047
Services transferred over time	—		55,996		13,238		112,374		181,608
Total revenue by timing of revenue recognition	$	914,859	$	69,443	$	20,567	$	127,786	$	1,132,655


	Six Months Ended April 27, 2024
	Networking Platforms		Platform Software and Services		Blue Planet Automation Software and Services		Global Services		Total
Product lines:
Optical Networking	$	1,256,072	$	—	$	—	$	—	$	1,256,072
Routing and Switching	227,421		—		—		—		227,421
Platform Software and Services	—		175,190		—		—		175,190
Blue Planet Automation Software and Services	—		—		28,376		—		28,376
Maintenance Support and Training	—		—		—		151,525		151,525
Installation and Deployment	—		—		—		86,509		86,509
Consulting and Network Design	—		—		—		23,442		23,442
Total revenue by product line	$	1,483,493	$	175,190	$	28,376	$	261,476	$	1,948,535

Timing of revenue recognition:
Products and services at a point in time	$	1,483,493	$	50,383	$	3,916	$	20,071	$	1,557,863
Services transferred over time	—		124,807		24,460		241,405		390,672
Total revenue by timing of revenue recognition	$	1,483,493	$	175,190	$	28,376	$	261,476	$	1,948,535


	Six months ended April 29, 2023
	Networking Platforms		Platform Software and Services		Blue Planet Automation Software and Services		Global Services		Total
Product lines:
Optical Networking	$	1,520,183	$	—	$	—	$	—	$	1,520,183
Routing and Switching	249,814		—		—		—		249,814
Platform Software and Services	—		142,888		—		—		142,888
Blue Planet Automation Software and Services	—		—		35,973		—		35,973
Maintenance Support and Training	—		—		—		141,051		141,051
Installation and Deployment	—		—		—		74,061		74,061
Consulting and Network Design	—		—		—		25,206		25,206
Total revenue by product line	$	1,769,997	$	142,888	$	35,973	$	240,318	$	2,189,176

Timing of revenue recognition:
Products and services at a point in time	$	1,769,997	$	32,311	$	11,312	$	24,667	$	1,838,287
Services transferred over time	—		110,577		24,661		215,651		350,889
Total revenue by timing of revenue recognition	$	1,769,997	$	142,888	$	35,973	$	240,318	$	2,189,176

Ciena reports its sales geographically using 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 based principally on the relevant location for Ciena’s delivery of products and performance of services.


	Quarter Ended				Six Months Ended
	April 27,		April 29,		April 27,		April 29,
	2024		2023		2024		2023
Geographic distribution:
Americas	$	662,877	$	794,359	$	1,381,075	$	1,559,455
EMEA	155,791		173,414		363,203		326,218
APAC	92,158		164,882		204,257		303,503
Total revenue by geographic distribution	$	910,826	$	1,132,655	$	1,948,535	$	2,189,176

Ciena’s revenue includes $618.8 million and $722.6 million of United States revenue for the second quarter of fiscal 2024 and 2023, respectively. For the six months ended April 27, 2024 and April 29, 2023, United States revenue was $1.3 billion and $1.4 billion, respectively. No other country accounted for 10% or more of total revenue for the periods indicated in the above table.

AT&T purchased products and services from each of Ciena’s operating segments for each of the periods presented. The cloud provider noted in the above table purchased products from each of Ciena’s operating segments excluding Blue Planet® Automation Software and Services for each of the periods presented.

•Optical Networking - 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 also includes the WaveLogic 5 Nano (WL5n) 100G-400G coherent pluggable transceivers.

•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 IP networking platforms, the 8700 Packetwave Platform, virtualization software and Ciena’s WaveRouter® product. This product line also includes SD-Edge software and passive optical network (PON) routing and switching portfolio products.

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 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 providing more visibility into their networks. Ciena’s platform software includes its Navigator Network Control SuiteTM (“Navigator NCS”) domain controller solution, its suite of Navigator NCS applications, previously referred to as “Manage, Control and Plan (MCP),” its OneControl Unified Management System, and planning tools and 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 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, 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), multi-cloud orchestration (MCO), 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 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 Condensed 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.

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


	Balance at April 27, 2024		Balance at October 28, 2023
Accounts receivable, net	$	840,131	$	1,003,876
Contract assets for unbilled accounts receivable, net	$	151,896	$	150,312
Deferred revenue	$	277,354	$	228,460

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 10 below.

Deferred revenue represents contract liabilities and consists of advanced payments against non-cancelable customer orders received prior to revenue recognition. Ciena recognized approximately $105.3 million and $100.1 million of revenue during the first six months of fiscal 2024 and 2023, respectively, that was included in the deferred revenue balance as of October 28, 2023 and October 29, 2022, 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 27, 2024 and April 29, 2023.

Capitalized contract acquisition costs consist of deferred sales commissions, and were $26.7 million and $30.2 million as of April 27, 2024 and October 28, 2023, 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 $14.9 million and $16.2 million during the first six months of fiscal 2024 and 2023, respectively, and was included in selling and marketing expense on the Condensed Consolidated Statements 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 27, 2024, the aggregate amount of RPO was $1.5 billion. As of April 27, 2024, Ciena expects approximately 78% of the RPO balance to be recognized as revenue within the next 12 months.