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Revenue | 6 Months Ended
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May 01, 2021
Revenue from Contract with Customer [Abstract] |
Revenue | REVENUE Disaggregation of Revenue Ciena’s disaggregated revenue represents similar groups that depict the nature, amount, and timing of revenue and cash flows for Ciena’s various offerings. The sales cycle, contractual obligations, customer requirements, and go-to-market strategies may differ for each of its product lines, resulting in different economic risk profiles for each line. Effective as of the beginning of fiscal 2021, Ciena renamed its “Packet Networking” product line to “Routing and Switching.” This change, affecting only the presentation of such information, was made on a prospective basis and does not impact comparability of previous financial results. References to prior reported “Packet Networking” product line have been changed herein to“Routing and Switching.” The tables below set forth Ciena’s disaggregated revenue for the respective periods (in thousands):
| Quarter Ended May 1, 2021
| Networking Platforms |  | Platform Software and Services |  | Blue Planet Automation Software and Services |  | Global Services |  | Total
Product lines: |  |  |  |  |  |  |  |  |
Converged Packet Optical | $ | 573,657 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 573,657 |
Routing and Switching | 63,628 |  |  | — |  |  | — |  |  | — |  |  | 63,628 |
Platform Software and Services | — |  |  | 56,688 |  |  | — |  |  | — |  |  | 56,688 |
Blue Planet Automation Software and Services | — |  |  | — |  |  | 23,958 |  |  | — |  |  | 23,958 |
Maintenance Support and Training | — |  |  | — |  |  | — |  |  | 70,418 |  |  | 70,418 |
Installation and Deployment | — |  |  | — |  |  | — |  |  | 37,999 |  |  | 37,999 |
Consulting and Network Design | — |  |  | — |  |  | — |  |  | 7,579 |  |  | 7,579 |
Total revenue by product line | $ | 637,285 |  |  | $ | 56,688 |  |  | $ | 23,958 |  |  | $ | 115,996 |  |  | $ | 833,927 |
Timing of revenue recognition: |  |  |  |  |  |  |  |  |
Products and services at a point in time | $ | 637,285 |  |  | $ | 20,765 |  |  | $ | 10,765 |  |  | $ | 1,411 |  |  | $ | 670,226 |
Services transferred over time | — |  |  | 35,923 |  |  | 13,193 |  |  | 114,585 |  |  | 163,701 |
Total revenue by timing of revenue recognition | $ | 637,285 |  |  | $ | 56,688 |  |  | $ | 23,958 |  |  | $ | 115,996 |  |  | $ | 833,927 |
| Quarter Ended May 2, 2020
| Networking Platforms |  | Platform Software and Services |  | Blue Planet Automation Software and Services |  | Global Services |  | Total
Product lines: |  |  |  |  |  |  |  |  |
Converged Packet Optical | $ | 654,294 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 654,294 |
Routing and Switching | 64,167 |  |  | — |  |  | — |  |  | — |  |  | 64,167 |
Platform Software and Services | — |  |  | 44,985 |  |  | — |  |  | — |  |  | 44,985 |
Blue Planet Automation Software and Services | — |  |  | — |  |  | 15,017 |  |  | — |  |  | 15,017 |
Maintenance Support and Training | — |  |  | — |  |  | — |  |  | 71,479 |  |  | 71,479 |
Installation and Deployment | — |  |  | — |  |  | — |  |  | 34,242 |  |  | 34,242 |
Consulting and Network Design | — |  |  | — |  |  | — |  |  | 9,869 |  |  | 9,869 |
Total revenue by product line | $ | 718,461 |  |  | $ | 44,985 |  |  | $ | 15,017 |  |  | $ | 115,590 |  |  | $ | 894,053 |
Timing of revenue recognition: |  |  |  |  |  |  |  |  |
Products and services at a point in time | $ | 718,461 |  |  | $ | 16,978 |  |  | $ | 4,745 |  |  | $ | 4,677 |  |  | $ | 744,861 |
Services transferred over time | — |  |  | 28,007 |  |  | 10,272 |  |  | 110,913 |  |  | 149,192 |
Total revenue by timing of revenue recognition | $ | 718,461 |  |  | $ | 44,985 |  |  | $ | 15,017 |  |  | $ | 115,590 |  |  | $ | 894,053 |
| Six Months Ended May 1, 2021
| Networking Platforms |  | Platform Software and Services |  | Blue Planet Automation Software and Services |  | Global Services |  | Total
Product lines: |  |  |  |  |  |  |  |  |
Converged Packet Optical | $ | 1,085,981 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,085,981 |
Routing and Switching | 127,934 |  |  | — |  |  | — |  |  | — |  |  | 127,934 |
Platform Software and Services | — |  |  | 106,527 |  |  | — |  |  | — |  |  | 106,527 |
Blue Planet Automation Software and Services | — |  |  | — |  |  | 40,892 |  |  | — |  |  | 40,892 |
Maintenance Support and Training | — |  |  | — |  |  | — |  |  | 138,049 |  |  | 138,049 |
Installation and Deployment | — |  |  | — |  |  | — |  |  | 77,610 |  |  | 77,610 |
Consulting and Network Design | — |  |  | — |  |  | — |  |  | 14,064 |  |  | 14,064 |
Total revenue by product line | $ | 1,213,915 |  |  | $ | 106,527 |  |  | $ | 40,892 |  |  | $ | 229,723 |  |  | $ | 1,591,057 |
Timing of revenue recognition: |  |  |  |  |  |  |  |  |
Products and services at a point in time | $ | 1,213,915 |  |  | $ | 36,828 |  |  | $ | 15,939 |  |  | $ | 3,268 |  |  | $ | 1,269,950 |
Services transferred over time | — |  |  | 69,699 |  |  | 24,953 |  |  | 226,455 |  |  | 321,107 |
Total revenue by timing of revenue recognition | $ | 1,213,915 |  |  | $ | 106,527 |  |  | $ | 40,892 |  |  | $ | 229,723 |  |  | $ | 1,591,057 |
| Six Months Ended May 2, 2020
| Networking Platforms |  | Platform Software and Services |  | Blue Planet Automation Software and Services |  | Global Services |  | Total
Product lines: |  |  |  |  |  |  |  |  |
Converged Packet Optical | $ | 1,245,844 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,245,844 |
Routing Switching | 131,675 |  |  | — |  |  | — |  |  | — |  |  | 131,675 |
Platform Software and Services | — |  |  | 96,873 |  |  | — |  |  | — |  |  | 96,873 |
Blue Planet Automation Software and Services | — |  |  | — |  |  | 30,482 |  |  | — |  |  | 30,482 |
Maintenance Support and Training | — |  |  | — |  |  | — |  |  | 133,271 |  |  | 133,271 |
Installation and Deployment | — |  |  | — |  |  | — |  |  | 69,196 |  |  | 69,196 |
Consulting and Network Design | — |  |  | — |  |  | — |  |  | 19,624 |  |  | 19,624 |
Total revenue by product line | $ | 1,377,519 |  |  | $ | 96,873 |  |  | $ | 30,482 |  |  | $ | 222,091 |  |  | $ | 1,726,965 |
Timing of revenue recognition: |  |  |  |  |  |  |  |  |
Products and services at a point in time | $ | 1,377,519 |  |  | $ | 30,092 |  |  | $ | 8,481 |  |  | $ | 8,874 |  |  | $ | 1,424,966 |
Services transferred over time | — |  |  | 66,781 |  |  | 22,001 |  |  | 213,217 |  |  | 301,999 |
Total revenue by timing of revenue recognition | $ | 1,377,519 |  |  | $ | 96,873 |  |  | $ | 30,482 |  |  | $ | 222,091 |  |  | $ | 1,726,965 |
Ciena reflects its sales geographically around the following markets: (i) Americas; (ii) Europe, Middle East and Africa (“EMEA”); and (iii) Asia Pacific, Japan and India (“APAC”). Americas includes activities in North America and South America. 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. For the periods below, Ciena’s geographic distribution of revenue was as follows (in thousands):
|  | Quarter Ended |  | Six Months Ended
|  | May 1, |  | May 2, |  | May 1, |  | May 2,
|  | 2021 |  | 2020 |  | 2021 |  | 2020
Geographic distribution: |  |  |  |  |  |  |  |
Americas |  | $ | 587,475 |  |  | $ | 650,381 |  |  | $ | 1,084,086 |  |  | $ | 1,224,385 |
EMEA |  | 155,054 |  |  | 141,431 |  |  | 310,472 |  |  | 271,396 |
APAC |  | 91,398 |  |  | 102,241 |  |  | 196,499 |  |  | 231,184 |
Total revenue by geographic distribution |  | $ | 833,927 |  |  | $ | 894,053 |  |  | $ | 1,591,057 |  |  | $ | 1,726,965 |
Ciena’s revenue includes $518.6 million and $598.4 million of United States revenue for the second quarter of fiscal 2021 and 2020, respectively. For the six months ended May 1, 2021 and May 2, 2020, United States revenue was $1.0 billion and $1.1 billion, respectively. 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):
| Quarter Ended |  | Six Months Ended
| May 1, |  | May 2, |  | May 1, |  | May 2,
| 2021 |  | 2020 |  | 2021 |  | 2020
AT&T | $ | 125,138 |  |  | $ | 105,630 |  |  | $ | 193,941 |  |  | $ | 189,640 |
Verizon | n/a |  | n/a |  | n/a |  | 203,630 |
Total | $ | 125,138 |  |  | $ | 105,630 |  |  | $ | 193,941 |  |  | $ | 393,270 |
n/a | Denotes 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. •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® stackable interconnect system, the 6500 Reconfigurable Line System (RLS) and the 5400 family of Packet-Optical Platforms. This product line also includes sales of the Z-Series Packet-Optical Platform. ◦Routing and Switching - includes the 3000 family of service delivery switches and service aggregation switches and the 5000 family of service aggregation switches. This product line also includes the 8700 Packetwave Platform, the Ethernet packet configuration for the 5410 Service Aggregation Switch, and the 6500 Packet Transport System (PTS), which combines packet switching, control plane operation, and integrated optics. 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 provides analytics, data, and planning tools to assist customers in managing Ciena’s Networking Platforms products in their networks. Ciena’s platform software includes its Manage, Control and Plan (MCP) domain controller solution, 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 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, micro-services, standards-based open software suite, together with related services, that enables customers to implement large-scale software and IT-led operations support system (OSS) transformations by transforming legacy networks into “service ready” networks, accelerating the creation, delivery and lifecycle management of new, cloud-based services. 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 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. Contract Balances The following table provides information about receivables, contract assets and contract liabilities (deferred revenue) from contracts with customers (in thousands):
|  | Balance at May 1, 2021 |  | Balance at October 31, 2020
Accounts receivable, net |  | $ | 716,779 |  |  | $ | 719,405 |
Contract assets for unbilled accounts receivable, net |  | $ | 81,437 |  |  | $ | 85,843 |
Deferred revenue |  | $ | 204,299 |  |  | $ | 158,363 |
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 current assets in the Condensed 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 $78.0 million and $76.5 million of revenue during the first six months of fiscal 2021 and 2020, respectively, that was included in the deferred revenue balance as of October 31, 2020 and November 2, 2019, 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 May 1, 2021 and May 2, 2020. Capitalized Contract Acquisition Costs Capitalized contract acquisition costs consist of deferred sales commissions, were $18.4 million and $15.3 million as of May 1, 2021 and October 31, 2020, respectively, and were included in prepaid expenses and other and other long-term assets. The amortization expense associated with these costs was $10.7 million and $10.1 million during the first six months of fiscal 2021 and 2020, respectively, and was included in sales and marketing expense. 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 May 1, 2021, the aggregate amount of RPO was $1.4 billion. As of May 1, 2021, Ciena expects approximately 83% of the RPO to be recognized as revenue within the next twelve months.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 + Details
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