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Operating Segments and Geographic Information (Tables) | 6 Months Ended
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Jan. 01, 2022
Segment Reporting [Abstract] |
Schedule of Information on Reportable Segments | The following tables present information on the Company’s reportable segments for the three months ended January 1, 2022 and January 2, 2021 (in millions):
| Three Months Ended January 1, 2022
| Network and Service Enablement |  |  |  |  |  |  |  |  |  |
| Network Enablement |  | Service Enablement |  | Network and Service Enablement |  | Optical Security and Performance Products |  |  |  | Other Items (1) |  | Consolidated GAAP Measures
Product revenue | $ | 189.6 |  |  | $ | 17.2 |  |  | $ | 206.8 |  |  | $ | 70.6 |  |  |  |  | $ | — |  |  | $ | 277.4 |
Service revenue | 24.8 |  |  | 12.6 |  |  | 37.4 |  |  | — |  |  |  |  | — |  |  | 37.4 |
Net revenue | $ | 214.4 |  |  | $ | 29.8 |  |  | $ | 244.2 |  |  | $ | 70.6 |  |  |  |  | $ | — |  |  | $ | 314.8 |
Gross profit | $ | 138.0 |  |  | $ | 21.4 |  |  | $ | 159.4 |  |  | $ | 39.7 |  |  |  |  | $ | (8.6) |  |  | $ | 190.5 |
Gross margin | 64.4 | % |  | 71.8 | % |  | 65.3 | % |  | 56.2 | % |  |  |  |  |  | 60.5 | %
Operating income |  |  |  |  | $ | 45.6 |  |  | $ | 27.7 |  |  |  |  | $ | (24.0) |  |  | $ | 49.3 |
Operating margin |  |  |  |  | 18.7 | % |  | 39.2 | % |  |  |  |  |  | 15.7 | %
| Three Months Ended January 2, 2021
| Network and Service Enablement |  |  |  |  |  |  |  |  |  |
| Network Enablement |  | Service Enablement |  | Network and Service Enablement |  | Optical Security and Performance Products |  |  |  | Other Items (1) |  | Consolidated GAAP Measures
Product revenue | $ | 156.4 |  |  | $ | 12.9 |  |  | $ | 169.3 |  |  | $ | 92.8 |  |  |  |  | $ | — |  |  | $ | 262.1 |
Service revenue | 24.5 |  |  | 12.9 |  |  | 37.4 |  |  | 0.4 |  |  |  |  | — |  |  | 37.8 |
Net revenue | $ | 180.9 |  |  | $ | 25.8 |  |  | $ | 206.7 |  |  | $ | 93.2 |  |  |  |  | $ | — |  |  | $ | 299.9 |
Gross profit | $ | 113.3 |  |  | $ | 17.6 |  |  | $ | 130.9 |  |  | $ | 58.4 |  |  |  |  | $ | (9.2) |  |  | $ | 180.1 |
Gross margin | 62.6 | % |  | 68.2 | % |  | 63.3 | % |  | 62.7 | % |  |  |  |  |  | 60.1 | %
Operating income |  |  |  |  | $ | 22.2 |  |  | $ | 44.6 |  |  |  |  | $ | (24.5) |  |  | $ | 42.3 |
Operating margin |  |  |  |  | 10.7 | % |  | 47.9 | % |  |  |  |  |  | 14.1 | %
| Three Months Ended
| January 1, 2022 |  | January 2, 2021
Corporate reconciling items impacting gross profit: |  |  |
Total segment gross profit | $ | 199.1 |  |  | $ | 189.3 |
Stock-based compensation | (1.2) |  |  | (1.2) |
Amortization of intangibles | (7.4) |  |  | (8.4) |
Other benefits unrelated to core operating performance (1) | — |  |  | 0.4 |
GAAP gross profit | $ | 190.5 |  |  | $ | 180.1 |
Corporate reconciling items impacting operating income: |  |  |
Total segment operating income | $ | 73.3 |  |  | $ | 66.8 |
Stock-based compensation | (13.3) |  |  | (9.9) |
Amortization of intangibles | (10.0) |  |  | (16.5) |
Change in fair value of contingent liability | — |  |  | 1.5 |
Other (charges) benefits unrelated to core operating performance (1) | (0.8) |  |  | 0.6 |
Restructuring and related benefits (charges) | 0.1 |  |  | (0.2) |
GAAP operating income from continuing operations | $ | 49.3 |  |  | $ | 42.3 |
(1) During the three months ended January 1, 2022 and January 2, 2021, other charges unrelated to core operating performance primarily consisted of certain acquisition and integration related changes, transformational initiatives such as site consolidations, reorganization, and loss on disposal of long-lived assets.
| Six Months Ended January 1, 2022
| Network and Service Enablement |  |  |  |  |  |  |  |  |  |
| Network Enablement |  | Service Enablement |  | Network and Service Enablement |  | Optical Security and Performance Products |  |  |  | Other Items (1) |  | Consolidated GAAP Measures
Product revenue | $ | 369.2 |  |  | $ | 28.1 |  |  | $ | 397.3 |  |  | $ | 169.2 |  |  |  |  | $ | — |  |  | $ | 566.5 |
Service revenue | 50.1 |  |  | 24.7 |  |  | 74.8 |  |  | 0.3 |  |  |  |  | — |  |  | 75.1 |
Net revenue | $ | 419.3 |  |  | $ | 52.8 |  |  | $ | 472.1 |  |  | $ | 169.5 |  |  |  |  | $ | — |  |  | $ | 641.6 |
Gross profit | $ | 270.7 |  |  | $ | 36.1 |  |  | $ | 306.8 |  |  | $ | 96.8 |  |  |  |  | $ | (18.1) |  |  | $ | 385.5 |
Gross margin | 64.6 | % |  | 68.4 | % |  | 65.0 | % |  | 57.1 | % |  |  |  |  |  | 60.1 | %
Operating income |  |  |  |  | $ | 76.3 |  |  | $ | 71.3 |  |  |  |  | $ | (51.4) |  |  | $ | 96.2 |
Operating margin |  |  |  |  | 16.2 | % |  | 42.1 | % |  |  |  |  |  | 15.0 | %
| Six Months Ended January 2, 2021
| Network and Service Enablement |  |  |  |  |  |  |  |  |  |
| Network Enablement |  | Service Enablement |  | Network and Service Enablement |  | Optical Security and Performance Products |  |  |  | Other Items (1) |  | Consolidated GAAP Measures
Product revenue | $ | 295.6 |  |  | $ | 20.6 |  |  | $ | 316.2 |  |  | $ | 193.8 |  |  |  |  | $ | — |  |  | $ | 510.0 |
Service revenue | 47.4 |  |  | 26.6 |  |  | 74.0 |  |  | 0.6 |  |  |  |  | — |  |  | 74.6 |
Net revenue | $ | 343.0 |  |  | $ | 47.2 |  |  | $ | 390.2 |  |  | $ | 194.4 |  |  |  |  | $ | — |  |  | $ | 584.6 |
Gross profit | $ | 216.8 |  |  | $ | 31.9 |  |  | $ | 248.7 |  |  | $ | 119.4 |  |  |  |  | $ | (18.6) |  |  | $ | 349.5 |
Gross margin | 63.2 | % |  | 67.6 | % |  | 63.7 | % |  | 61.4 | % |  |  |  |  |  | 59.8 | %
Operating income |  |  |  |  | $ | 35.5 |  |  | $ | 91.9 |  |  |  |  | $ | (53.8) |  |  | $ | 73.6 |
Operating margin |  |  |  |  | 9.1 | % |  | 47.3 | % |  |  |  |  |  | 12.6 | %
| Six Months Ended
| January 1, 2022 |  | January 2, 2021
Corporate reconciling items impacting gross profit: |  |  |
Total segment gross profit | $ | 403.6 |  |  | $ | 368.1 |
Stock-based compensation | (2.8) |  |  | (2.4) |
Amortization of intangibles | (15.3) |  |  | (16.6) |
Other benefits unrelated to core operating performance (1) | — |  |  | 0.4 |
GAAP gross profit | $ | 385.5 |  |  | $ | 349.5 |
Corporate reconciling items impacting operating income: |  |  |
Total segment operating income | $ | 147.6 |  |  | $ | 127.4 |
Stock-based compensation | (26.9) |  |  | (22.4) |
Amortization of intangibles | (20.6) |  |  | (33.2) |
Change in fair value of contingent liability | (0.3) |  |  | 1.5 |
Other charges unrelated to core operating performance (1) | (3.7) |  |  | (0.1) |
Restructuring and related benefits | 0.1 |  |  | 0.4 |
GAAP operating income from continuing operations | $ | 96.2 |  |  | $ | 73.6 |
(1) During the six months ended January 1, 2022 and January 2, 2021, other charges unrelated to core operating performance primarily consisted of certain acquisition and integration related changes, transformational initiatives such as site consolidations, reorganization, and loss on disposal of long-lived assets.
Schedule of Revenue by Geographic Regions | The following table presents net revenue by the three geographic regions in which the Company operates and net revenue from countries that exceeded 10% of the Company’s total net revenue for the three and six months ended January 1, 2022 and January 2, 2021 (in millions):
| Three Months Ended
| January 1, 2022 |  | January 2, 2021
| Product Revenue |  | Service Revenue |  | Total |  | Product Revenue |  | Service Revenue |  | Total
Americas: |  |  |  |  |  |  |  |  |  |  |
United States | $ | 87.4 |  |  | $ | 12.8 |  |  | $ | 100.2 |  |  | $ | 74.4 |  |  | $ | 14.2 |  |  | $ | 88.6 |
Other Americas | 21.4 |  |  | 4.1 |  |  | 25.5 |  |  | 16.0 |  |  | 3.8 |  |  | 19.8 |
Total Americas | $ | 108.8 |  |  | $ | 16.9 |  |  | $ | 125.7 |  |  | $ | 90.4 |  |  | $ | 18.0 |  |  | $ | 108.4 |
Asia-Pacific: |  |  |  |  |  |  |  |  |  |  |
Greater China | $ | 54.4 |  |  | $ | 2.1 |  |  | $ | 56.5 |  |  | $ | 69.9 |  |  | $ | 3.3 |  |  | $ | 73.2 |
Other Asia-Pacific | 29.6 |  |  | 4.9 |  |  | 34.5 |  |  | 20.0 |  |  | 3.2 |  |  | 23.2 |
Total Asia-Pacific | $ | 84.0 |  |  | $ | 7.0 |  |  | $ | 91.0 |  |  | $ | 89.9 |  |  | $ | 6.5 |  |  | $ | 96.4 |
EMEA: |  |  |  |  |  |  |  |  |  |  |
Switzerland | $ | 11.6 |  |  | $ | 0.1 |  |  | $ | 11.7 |  |  | $ | 19.8 |  |  | $ | 0.1 |  |  | $ | 19.9 |
Other EMEA | 73.0 |  |  | 13.4 |  |  | 86.4 |  |  | 62.0 |  |  | 13.2 |  |  | 75.2 |
Total EMEA | $ | 84.6 |  |  | $ | 13.5 |  |  | $ | 98.1 |  |  | $ | 81.8 |  |  | $ | 13.3 |  |  | $ | 95.1 |
Total net revenue | $ | 277.4 |  |  | $ | 37.4 |  |  | $ | 314.8 |  |  | $ | 262.1 |  |  | $ | 37.8 |  |  | $ | 299.9 |
| Six Months Ended
| January 1, 2022 |  | January 2, 2021
| Product Revenue |  | Service Revenue |  | Total |  | Product Revenue |  | Service Revenue |  | Total
Americas: |  |  |  |  |  |  |  |  |  |  |
United States | $ | 167.3 |  |  | $ | 26.2 |  |  | $ | 193.5 |  |  | $ | 138.1 |  |  | $ | 28.3 |  |  | $ | 166.4 |
Other Americas | 46.4 |  |  | 7.3 |  |  | 53.7 |  |  | 30.3 |  |  | 7.1 |  |  | 37.4 |
Total Americas | $ | 213.7 |  |  | $ | 33.5 |  |  | $ | 247.2 |  |  | $ | 168.4 |  |  | $ | 35.4 |  |  | $ | 203.8 |
Asia-Pacific: |  |  |  |  |  |  |  |  |  |  |
Greater China | $ | 124.2 |  |  | $ | 4.9 |  |  | $ | 129.1 |  |  | $ | 147.2 |  |  | $ | 5.0 |  |  | $ | 152.2 |
Other Asia | 79.1 |  |  | 9.1 |  |  | 88.2 |  |  | 45.4 |  |  | 7.0 |  |  | 52.4 |
Total Asia-Pacific | $ | 203.3 |  |  | $ | 14.0 |  |  | $ | 217.3 |  |  | $ | 192.6 |  |  | $ | 12.0 |  |  | $ | 204.6 |
EMEA: |  |  |  |  |  |  |  |  |  |  |
Switzerland | $ | 24.7 |  |  | $ | 0.2 |  |  | $ | 24.9 |  |  | $ | 37.7 |  |  | $ | 0.2 |  |  | $ | 37.9 |
Other EMEA | 124.8 |  |  | 27.4 |  |  | 152.2 |  |  | 111.3 |  |  | 27.0 |  |  | 138.3 |
Total EMEA | $ | 149.5 |  |  | $ | 27.6 |  |  | $ | 177.1 |  |  | $ | 149.0 |  |  | $ | 27.2 |  |  | $ | 176.2 |
Total net revenue | $ | 566.5 |  |  | $ | 75.1 |  |  | $ | 641.6 |  |  | $ | 510.0 |  |  | $ | 74.6 |  |  | $ | 584.6 |

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