Ciena’s disaggregated revenue as presented below depicts the nature, amount, and timing of revenue and cash flows for similar groupings of Ciena’s various offerings. 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 29, 2023
	Networking Platforms		Platform Software and Services		Blue Planet Automation Software and Services		Global Services		Total
Product lines:
Converged Packet Optical	$	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


	Quarter Ended April 30, 2022
	Networking Platforms		Platform Software and Services		Blue Planet Automation Software and Services		Global Services		Total
Product lines:
Converged Packet Optical	$	625,294	$	—	$	—	$	—	$	625,294
Routing and Switching	109,186		—		—		—		109,186
Platform Software and Services	—		69,157		—		—		69,157
Blue Planet Automation Software and Services	—		—		16,881		—		16,881
Maintenance Support and Training	—		—		—		74,019		74,019
Installation and Deployment	—		—		—		41,430		41,430
Consulting and Network Design	—		—		—		13,260		13,260
Total revenue by product line	$	734,480	$	69,157	$	16,881	$	128,709	$	949,227

Timing of revenue recognition:
Products and services at a point in time	$	734,480	$	21,743	$	4,036	$	13,469	$	773,728
Services transferred over time	—		47,414		12,845		115,240		175,499
Total revenue by timing of revenue recognition	$	734,480	$	69,157	$	16,881	$	128,709	$	949,227


	Six Months Ended April 29, 2023
	Networking Platforms		Platform Software and Services		Blue Planet Automation Software and Services		Global Services		Total
Product lines:
Converged Packet Optical	$	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


	Six months ended April 30, 2022
	Networking Platforms		Platform Software and Services		Blue Planet Automation Software and Services		Global Services		Total
Product lines:
Converged Packet Optical	$	1,166,230	$	—	$	—	$	—	$	1,166,230
Routing and Switching	194,896		—		—		—		194,896
Platform Software and Services	—		142,074		—		—		142,074
Blue Planet Automation Software and Services	—		—		37,992		—		37,992
Maintenance Support and Training	—		—		—		146,509		146,509
Installation and Deployment	—		—		—		81,800		81,800
Consulting and Network Design	—		—		—		24,169		24,169
Total revenue by product line	$	1,361,126	$	142,074	$	37,992	$	252,478	$	1,793,670

Timing of revenue recognition:
Products and services at a point in time	$	1,361,126	$	51,424	$	12,810	$	21,960	$	1,447,320
Services transferred over time	—		90,650		25,182		230,518		346,350
Total revenue by timing of revenue recognition	$	1,361,126	$	142,074	$	37,992	$	252,478	$	1,793,670

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”). 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.


	Quarter Ended				Six Months Ended
	April 29,		April 30,		April 29,		April 30,
	2023		2022		2023		2022
Geographic distribution:
Americas	$	794,359	$	700,840	$	1,559,455	$	1,295,984
EMEA	173,414		145,106		326,218		295,891
APAC	164,882		103,281		303,503		201,795
Total revenue by geographic distribution	$	1,132,655	$	949,227	$	2,189,176	$	1,793,670

Ciena’s revenue includes $722.6 million and $642.2 million of United States revenue for the second quarter of fiscal 2023 and 2022, respectively. For the six months ended April 29, 2023 and April 30, 2022, United States revenue was $1.4 billion and $1.2 billion, respectively. No other country accounted for 10% or more of total revenue for the periods presented in the above table.


	Quarter Ended				Six Months Ended
	April 29,		April 30,		April 29,		April 30,
	2023		2022		2023		2022

Web-scale provider	$	123,452	n/a		$	244,779	n/a
AT&T	n/a		103,189		251,329		214,065
Total	$	123,452	$	103,189	$	496,108	$	214,065

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

•Converged Packet Optical - 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 includes the WL5n 100G-400G

•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, and Vyatta virtual routing and switching products. This product line also includes SD-Edge software and passive optical network (“PON”) routing and switching portfolio products from our recent acquisitions of Benu Networks, Inc. (“Benu”) and Tibit Communications, Inc. (“Tibit”) respectively, during the first quarter of fiscal 2023.

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 more proactive visibility into their networks. Ciena’s platform software includes its Manage, Control and Plan (“MCP”) domain controller solution, its suite of MCP applications, and its 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, 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), 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 in which 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 for which 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 also 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 (in thousands):


	Balance at April 29, 2023		Balance at October 29, 2022
Accounts receivable, net	$	1,036,688	$	920,772
Contract assets for unbilled accounts receivable, net	$	180,020	$	156,039
Deferred revenue	$	270,625	$	200,235

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 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 $100.1 million and $82.0 million of revenue during the first six months of fiscal 2023 and 2022, respectively, that was included in the deferred revenue balance as of October 29, 2022 and October 30, 2021, 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 29, 2023 and April 30, 2022.

Capitalized contract acquisition costs consist of deferred sales commissions, and were $36.6 million and $39.7 million as of April 29, 2023 and October 29, 2022, 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 $16.2 million and $14.1 million during the first six months of fiscal 2023 and 2022, 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 29, 2023, the aggregate amount of RPO was $2.4 billion. As of April 29, 2023, Ciena expects approximately 86% of the RPO to be recognized as revenue within the next 12 months.