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Operating Segments and Geographic Information (Tables) | 6 Months Ended
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Dec. 29, 2018
Segment Reporting [Abstract] |
Schedule of information on reportable segments | Information on reportable segments is as follows (in millions):
| Three Months Ended December 29, 2018
| Network Enablement |  | Service Enablement |  | Network and Service Enablement |  | Optical Security and Performance Products |  | Other Items |  | Consolidated GAAP Measures
Product revenue | $ | 176.0 |  |  | $ | 13.8 |  |  | $ | 189.8 |  |  | $ | 83.0 |  |  | $ | — |  |  | $ | 272.8 |
Service revenue | 19.5 |  |  | 14.4 |  |  | 33.9 |  |  | 0.2 |  |  | — |  |  | 34.1 |
Net revenue | $ | 195.5 |  |  | $ | 28.2 |  |  | $ | 223.7 |  |  | $ | 83.2 |  |  | $ | — |  |  | $ | 306.9 |
Gross profit | 125.7 |  |  | 20.3 |  |  | 146.0 |  |  | 41.8 |  |  | (9.8 | ) |  | 178.0 |
Gross margin | 64.3 | % |  | 72.0 | % |  | 65.3 | % |  | 50.2 | % |  |  |  | 58.0 | %
Operating income |  |  |  |  | 32.8 |  |  | 31.1 |  |  | (31.0 | ) |  | 32.9 |
Operating margin |  |  |  |  | 14.7 | % |  | 37.4 | % |  |  |  | 10.7 | %
| Three Months Ended December 30, 2017
| Network Enablement |  | Service Enablement |  | Network and Service Enablement |  | Optical Security and Performance Products |  | Other Items |  | Consolidated GAAP Measures
Product revenue | $ | 114.5 |  |  | $ | 19.1 |  |  | $ | 133.6 |  |  | $ | 47.7 |  |  | $ | — |  |  | $ | 181.3 |
Service revenue | 7.5 |  |  | 16.1 |  |  | 23.6 |  |  | 0.5 |  |  | — |  |  | 24.1 |
Net revenue | $ | 122.0 |  |  | $ | 35.2 |  |  | $ | 157.2 |  |  | $ | 48.2 |  |  | $ | — |  |  | $ | 205.4 |
Gross profit | 74.4 |  |  | 25.1 |  |  | 99.5 |  |  | 26.2 |  |  | (6.3 | ) |  | 119.4 |
Gross margin | 61.0 | % |  | 71.3 | % |  | 63.3 | % |  | 54.4 | % |  |  |  | 58.1 | %
Operating income |  |  |  |  | 11.2 |  |  | 17.4 |  |  | (21.7 | ) |  | 6.9 |
Operating margin |  |  |  |  | 7.1 | % |  | 36.1 | % |  |  |  | 3.4 | %
| Three Months Ended
| December 29, 2018 |  | December 30, 2017
Corporate reconciling items impacting gross profit: |  |  |
Total segment gross profit | $ | 187.8 |  |  | $ | 125.7 |
Stock-based compensation | (0.9 | ) |  | (0.7 | )
Amortization of intangibles | (8.5 | ) |  | (4.1 | )
Other charges unrelated to core operating performance (1) | (0.4 | ) |  | (1.5 | )
GAAP gross profit | $ | 178.0 |  |  | $ | 119.4 |
Corporate reconciling items impacting operating income: |  |  |
Total segment operating income | $ | 63.9 |  |  | $ | 28.6 |
Stock-based compensation | (9.6 | ) |  | (7.7 | )
Amortization of intangibles | (18.9 | ) |  | (7.5 | )
Other charges unrelated to core operating performance (2) | (2.2 | ) |  | (4.0 | )
Restructuring and related charges | (0.3 | ) |  | (2.5 | )
GAAP operating income | $ | 32.9 |  |  | $ | 6.9 |
(1) | During the three months ended December 29, 2018 and December 30, 2017, other charges unrelated to core operating performance primarily consisted of acquisition and integration related expenses such as amortization of acquisition related inventory step-up, site consolidations and reorganizations.
(2) | During the three months ended December 29, 2018 and December 30, 2017, other charges unrelated to core operating performance primarily consisted of acquisition and integration related transformational initiatives such as the implementation of simplified automated processes, site consolidation and reorganizations, amortization of acquisition related inventory step-up, and loss on disposal of long-lived assets.
| Six Months Ended December 29, 2018
| Network Enablement |  | Service Enablement |  | Network and Service Enablement |  | Optical Security and Performance Products |  | Other Items |  | Consolidated GAAP Measures
Product revenue | $ | 325.9 |  |  | $ | 27.4 |  |  | $ | 353.3 |  |  | $ | 160.6 |  |  | $ | — |  |  | $ | 513.9 |
Service revenue | 34.1 |  |  | 27.0 |  |  | 61.1 |  |  | 0.4 |  |  | — |  |  | 61.5 |
Net revenue | 360.0 |  |  | 54.4 |  |  | 414.4 |  |  | 161.0 |  |  | — |  |  | 575.4 |
Gross profit | 228.6 |  |  | 38.6 |  |  | 267.2 |  |  | 81.2 |  |  | (20.0 | ) |  | 328.4 |
Gross margin | 63.5 | % |  | 71.0 | % |  | 64.5 | % |  | 50.4 | % |  |  |  | 57.1 | %
Operating income |  |  |  |  | 49.2 |  |  | 58.5 |  |  | (76.0 | ) |  | 31.7 |
Operating margin |  |  |  |  | 11.9 | % |  | 36.3 | % |  |  |  | 5.5 | %
| Six Months Ended December 30, 2017
| Network Enablement |  | Service Enablement |  | Network and Service Enablement |  | Optical Security and Performance Products |  | Other Items |  | Consolidated GAAP Measures
Product revenue | $ | 217.3 |  |  | $ | 27.7 |  |  | $ | 245.0 |  |  | $ | 101.4 |  |  | $ | — |  |  | $ | 346.4 |
Service revenue | 16.3 |  |  | 32.4 |  |  | 48.7 |  |  | 1.2 |  |  | — |  |  | 49.9 |
Net revenue | 233.6 |  |  | 60.1 |  |  | 293.7 |  |  | 102.6 |  |  | — |  |  | 396.3 |
Gross profit | 144.7 |  |  | 42.4 |  |  | 187.1 |  |  | 57.6 |  |  | (12.6 | ) |  | 232.1 |
Gross margin | 61.9 | % |  | 70.5 | % |  | 63.7 | % |  | 56.1 | % |  |  |  | 58.6 | %
Operating income |  |  |  |  | 15.1 |  |  | 39.6 |  |  | (41.1 | ) |  | 13.6 |
Operating margin |  |  |  |  | 5.1 | % |  | 38.6 | % |  |  |  | 3.4 | %
| Six Months Ended
| December 29, 2018 |  | December 30, 2017
Corporate reconciling items impacting gross profit: |  |  |
Total segment gross profit | $ | 348.4 |  |  | $ | 244.7 |
Stock-based compensation | (1.7 | ) |  | (1.6 | )
Amortization of intangibles | (17.9 | ) |  | (8.2 | )
Other charges unrelated to core operating performance (1) | (0.4 | ) |  | (2.8 | )
GAAP gross profit | $ | 328.4 |  |  | $ | 232.1 |
Corporate reconciling items impacting operating income: |  |  |
Total segment operating income | $ | 107.7 |  |  | $ | 54.7 |
Stock-based compensation | (17.7 | ) |  | (15.2 | )
Amortization of intangibles | (38.1 | ) |  | (14.7 | )
Other charges unrelated to core operating performance (2) | (5.1 | ) |  | (7.2 | )
Restructuring and related charges | (15.1 | ) |  | (4.0 | )
GAAP operating income (loss) from continuing operations | $ | 31.7 |  |  | $ | 13.6 |
(1) | During the six months ended December 29, 2018 and December 30, 2017, other charges unrelated to core operating performance primarily consisted of acquisition and integration related expenses such as amortization of acquisition related inventory step-up, site consolidations and reorganizations.
(2) | During the six months ended December 29, 2018 and December 30, 2017, other charges unrelated to core operating performance primarily consisted of acquisition and integration related transformational initiatives such as the implementation of simplified automated processes, site consolidation and reorganizations, amortization of acquisition related inventory step-up, and loss on disposal of long-lived assets.
Schedule of revenue by geographic regions | he following table presents net revenue by the three geographic regions we operate in and net revenue from countries that exceeded 10% of our total net revenue, (in millions):
| Three Months Ended
| December 29, 2018 |  | December 30, 2017
| Product Revenue |  | Service Revenue |  | Total |  | Product Revenue |  | Service Revenue |  | Total
Americas: |  |  |  |  |  |  |  |  |  |  |
United States | $ | 89.8 |  |  | $ | 14.3 |  |  | $ | 104.1 |  |  | $ | 76.5 |  |  | $ | 13.8 |  |  | $ | 90.3 |
Other Americas | 17.3 |  |  | 4.0 |  |  | 21.3 |  |  | 20.1 |  |  | 3.6 |  |  | 23.7 |
Total Americas | $ | 107.1 |  |  | $ | 18.3 |  |  | $ | 125.4 |  |  | $ | 96.6 |  |  | $ | 17.4 |  |  | $ | 114.0 |
Asia-Pacific: |  |  |  |  |  |  |  |  |  |  |
Greater China | $ | 64.8 |  |  | $ | 2.1 |  |  | $ | 66.9 |  |  | $ | 28.7 |  |  | $ | 0.4 |  |  | $ | 29.1 |
Other Asia | 30.4 |  |  | 3.6 |  |  | 34.0 |  |  | 15.9 |  |  | 0.9 |  |  | 16.8 |
Total Asia-Pacific | $ | 95.2 |  |  | $ | 5.7 |  |  | $ | 100.9 |  |  | $ | 44.6 |  |  | $ | 1.3 |  |  | $ | 45.9 |
EMEA: |  |  |  |  |  |  |  |  |  |  |
Switzerland | $ | 23.0 |  |  | $ | — |  |  | $ | 23.0 |  |  | $ | 12.2 |  |  | $ | — |  |  | $ | 12.2 |
Other EMEA | 47.5 |  |  | 10.1 |  |  | 57.6 |  |  | 27.9 |  |  | 5.4 |  |  | 33.3 |
Total EMEA | $ | 70.5 |  |  | $ | 10.1 |  |  | $ | 80.6 |  |  | $ | 40.1 |  |  | $ | 5.4 |  |  | $ | 45.5 |
Total net revenue | $ | 272.8 |  |  | $ | 34.1 |  |  | $ | 306.9 |  |  | $ | 181.3 |  |  | $ | 24.1 |  |  | $ | 205.4 |
| Six Months Ended
| December 29, 2018 |  | December 30, 2017
| Product Revenue |  | Service Revenue |  | Total |  | Product Revenue |  | Service Revenue |  | Total
Americas: |  |  |  |  |  |  |  |  |  |  |
United States | $ | 149.9 |  |  | $ | 27.0 |  |  | $ | 176.9 |  |  | $ | 141.1 |  |  | $ | 26.8 |  |  | $ | 167.9 |
Other Americas | 35.2 |  |  | 7.1 |  |  | 42.3 |  |  | 32.1 |  |  | 8.6 |  |  | 40.7 |
Total Americas | $ | 185.1 |  |  | $ | 34.1 |  |  | $ | 219.2 |  |  | $ | 173.2 |  |  | $ | 35.4 |  |  | $ | 208.6 |
Asia-Pacific: |  |  |  |  |  |  |  |  |  |  |
Greater China | $ | 123.5 |  |  | $ | 2.3 |  |  | $ | 125.8 |  |  | $ | 51.1 |  |  | $ | 1.0 |  |  | $ | 52.1 |
Other Asia | 66.4 |  |  | 7.1 |  |  | 73.5 |  |  | 29.0 |  |  | 2.0 |  |  | 31.0 |
Total Asia-Pacific | $ | 189.9 |  |  | $ | 9.4 |  |  | $ | 199.3 |  |  | $ | 80.1 |  |  | $ | 3.0 |  |  | $ | 83.1 |
EMEA: |  |  |  |  |  |  |  |  |  |  |
Switzerland | $ | 48.7 |  |  | $ | — |  |  | $ | 48.7 |  |  | $ | 40.5 |  |  | $ | — |  |  | $ | 40.5 |
Other EMEA | 90.2 |  |  | 18.0 |  |  | 108.2 |  |  | 52.6 |  |  | 11.5 |  |  | 64.1 |
Total EMEA | $ | 138.9 |  |  | $ | 18.0 |  |  | $ | 156.9 |  |  | $ | 93.1 |  |  | $ | 11.5 |  |  | $ | 104.6 |
Total net revenue | $ | 513.9 |  |  | $ | 61.5 |  |  | $ | 575.4 |  |  | $ | 346.4 |  |  | $ | 49.9 |  |  | $ | 396.3 |

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