INTEREST AND OTHER INCOME, NET

6 Months Ended

Apr. 27, 2024

Other Income and Expenses [Abstract]

The components of interest and other income, net, are as follows for the periods indicated (in thousands):


	Quarter Ended				Six Months Ended
	April 27,		April 29,		April 27,		April 29,
	2024		2023		2024		2023
Interest income	$	15,255	$	10,416	$	30,433	$	17,530

Gains (losses) on non-hedge designated foreign currency forward contracts	(1,114)		(2,795)		1,998		(4,564)
Foreign currency exchange gains (losses)	(411)		2,987		(9,604)		1,104

Gain on equity investments, net	—		—		—		26,455
Other	(1,933)		(2,057)		(380)		(1)
Interest and other income, net	$	11,797	$	8,551	$	22,447	$	40,524

During the first quarter of fiscal 2023, the acquisition of Tibit Communications, Inc. (“Tibit”) by Ciena triggered the remeasurement of Ciena’s previously held investment in Tibit to fair value, which resulted in Ciena recognizing a gain on its equity investment of $26.5 million.

Ciena Corporation, as the U.S. parent entity, uses the U.S. Dollar as its functional currency; however, some of its foreign branch offices and subsidiaries use local currencies as their functional currencies. During the first six months of fiscal 2024, Ciena recorded $9.6 million in foreign currency exchange rate losses as a result of monetary assets and liabilities that were transacted in a currency other than Ciena’s functional currency. During the first six months fiscal 2023, Ciena recorded $1.1

million in foreign currency exchange rate gains as a result of monetary assets and liabilities that were transacted in a currency other than Ciena’s functional currency. The related remeasurement adjustments were recorded in interest and other income, net, on the Condensed Consolidated Statements of Operations. From time to time, Ciena uses foreign currency forwards to hedge this type of balance sheet exposure. These forwards are not designated as hedges for accounting purposes, and any net gain or loss associated with these derivatives is reported in interest and other income, net, on the Condensed Consolidated Statements of Operations. During the first six months of fiscal 2024, Ciena recorded gains of $2.0 million from non-hedge designated foreign currency forward contracts. During the first six months of fiscal 2023, Ciena recorded losses of $4.6 million from non-hedge designated foreign currency forward contracts.