SHARE-BASED COMPENSATION EXPENSE

6 Months Ended

Apr. 27, 2024

Share-Based Payment Arrangement [Abstract]

At Ciena’s 2024 Annual Meeting of Stockholders on March 21, 2024, Ciena’s stockholders approved an amendment to the Ciena Corporation 2017 Omnibus Incentive Plan (the “2017 Plan”), effective as of such date, to (i) increase the number of shares available for issuance thereunder by 10.1 million shares, and (ii) increase the recoupment period for misconduct relating to accounting restatements from 12 months to three years. As of April 27, 2024, the total number of shares authorized for issuance under the 2017 Plan is 31.2 million and approximately 10.8 million shares remained available for issuance thereunder.

The following table summarizes share-based compensation expense for the periods indicated (in thousands):


	Quarter Ended				Six Months Ended
	April 27,		April 29,		April 27,		April 29,
	2024		2023		2024		2023
Products	$	1,760	$	1,155	$	3,078	$	2,206
Services	3,344		2,659		6,364		4,956
Share-based compensation expense included in cost of goods sold	5,104		3,814		9,442		7,162
Research and development	14,066		10,731		26,946		19,965
Selling and marketing	11,166		8,755		21,471		17,179
General and administrative	9,875		8,468		19,954		17,936

Share-based compensation expense included in operating expense	35,107		27,954		68,371		55,080
Share-based compensation expense capitalized in inventory, net	37		92		262		130
Total share-based compensation expense	$	40,248	$	31,860	$	78,075	$	62,372

As of April 27, 2024, total unrecognized share-based compensation expense was approximately $291.3 million, which relates to unvested stock unit awards and is expected to be recognized over a weighted-average period of 1.48 years.