Earnings Per Share Calculation

3 Months Ended

Jan. 31, 2020

EARNINGS PER SHARE CALCULATION

The following tables (in thousands except per share amounts) reconcile basic net income per common share (“Basic EPS”) and diluted net income per potential common share (“Diluted EPS”). Basic EPS is computed using the weighted average number of common shares outstanding. Diluted EPS is computed using the weighted average number of the following, in each case, to the extent the effect is not anti-dilutive: (i) common shares outstanding; (ii) shares issuable upon vesting of stock unit awards; and (iii) shares issuable under Ciena’s employee stock purchase plan and upon exercise of outstanding stock options, using the treasury stock method.



	Quarter Ended January 31,
Numerator	2020		2019
Net income used to calculate Basic and Diluted EPS	$	62,328	$	33,616



	Quarter Ended January 31,
Denominator	2020	2019
Basic weighted average shares outstanding	154,334	156,314
Add: Shares underlying outstanding stock options and stock unit awards and issuable under employee stock purchase plan	1,404	1,860
Dilutive weighted average shares outstanding	155,738	158,174



	Quarter Ended January 31,
EPS	2020		2019
Basic EPS	$	0.40	$	0.22
Diluted EPS	$	0.40	$	0.21

The following table summarizes the weighted average shares excluded from the calculation of the denominator for Diluted EPS due to their anti-dilutive effect for the periods indicated (in thousands):



	Quarter Ended January 31,
	2020	2019
Shares underlying stock options and stock unit awards	731	401
Total shares excluded due to anti-dilutive effect	731	401