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v3.23.1

Operating Segments and Geographic Information (Tables) | 9 Months Ended
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Apr. 01, 2023
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 April 1, 2023 and April 2, 2022 (in millions):
| Three Months Ended April 1, 2023
| 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 | $ | 121.9 |  |  | $ | 12.8 |  |  | $ | 134.7 |  |  | $ | 70.5 |  |  |  |  | $ | — |  |  | $ | 205.2 |
Service revenue | 27.7 |  |  | 14.9 |  |  | 42.6 |  |  | — |  |  |  |  | — |  |  | 42.6 |
Net revenue | $ | 149.6 |  |  | $ | 27.7 |  |  | $ | 177.3 |  |  | $ | 70.5 |  |  |  |  | $ | — |  |  | $ | 247.8 |
Gross profit | $ | 92.8 |  |  | $ | 19.5 |  |  | $ | 112.3 |  |  | $ | 35.7 |  |  |  |  | $ | (7.0) |  |  | $ | 141.0 |
Gross margin | 62.0 | % |  | 70.4 | % |  | 63.3 | % |  | 50.6 | % |  |  |  |  |  | 56.9 | %
Operating income (loss) |  |  |  |  | $ | 2.5 |  |  | $ | 25.8 |  |  |  |  | $ | (30.4) |  |  | $ | (2.1) |
Operating margin |  |  |  |  | 1.4 | % |  | 36.6 | % |  |  |  |  |  | (0.8) | %
| Three Months Ended April 2, 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 | $ | 176.7 |  |  | $ | 14.5 |  |  | $ | 191.2 |  |  | $ | 84.6 |  |  |  |  | $ | — |  |  | $ | 275.8 |
Service revenue | 27.6 |  |  | 12.0 |  |  | 39.6 |  |  | 0.1 |  |  |  |  | — |  |  | 39.7 |
Net revenue | $ | 204.3 |  |  | $ | 26.5 |  |  | $ | 230.8 |  |  | $ | 84.7 |  |  |  |  | $ | — |  |  | $ | 315.5 |
Gross profit | $ | 130.3 |  |  | $ | 18.3 |  |  | $ | 148.6 |  |  | $ | 47.0 |  |  |  |  | $ | (8.7) |  |  | $ | 186.9 |
Gross margin | 63.8 | % |  | 69.1 | % |  | 64.4 | % |  | 55.5 | % |  |  |  |  |  | 59.2 | %
Operating income |  |  |  |  | $ | 34.4 |  |  | $ | 33.3 |  |  |  |  | $ | (26.9) |  |  | $ | 40.8 |
Operating margin |  |  |  |  | 14.9 | % |  | 39.3 | % |  |  |  |  |  | 12.9 | %
| Three Months Ended
| April 1, 2023 |  | April 2, 2022
Corporate reconciling items impacting gross profit: |  |  |
Total segment gross profit | $ | 148.0 |  |  | $ | 195.6 |
Stock-based compensation | (1.2) |  |  | (1.2) |
Amortization of intangibles | (5.9) |  |  | (7.4) |
Other benefits (charges) unrelated to core operating performance (1) | 0.1 |  |  | (0.1) |
GAAP gross profit | $ | 141.0 |  |  | $ | 186.9 |
Corporate reconciling items impacting operating (loss) income: |  |  |
Total segment operating income | $ | 28.3 |  |  | $ | 67.7 |
Stock-based compensation | (12.8) |  |  | (12.8) |
Amortization of intangibles | (8.0) |  |  | (9.6) |
Change in fair value of contingent liability | 1.9 |  |  | — |
Other charges unrelated to core operating performance (1) | (1.3) |  |  | (4.5) |
Restructuring and related charges | (10.2) |  |  | — |
GAAP operating (loss) income from continuing operations | $ | (2.1) |  |  | $ | 40.8 |
(1) During the three months ended April 1, 2023 and April 2, 2022, other benefits (charges) unrelated to core operating performance primarily consisted of certain acquisition and integration related charges, transformational initiatives such as site consolidations, reorganization, accretion of debt discount, intangible impairment and loss on disposal of long-lived assets.
| Nine Months Ended April 1, 2023
| 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 | $ | 438.4 |  |  | $ | 36.9 |  |  | $ | 475.3 |  |  | $ | 239.1 |  |  |  |  | $ | — |  |  | $ | 714.4 |
Service revenue | 85.8 |  |  | 42.2 |  |  | 128.0 |  |  | 0.1 |  |  |  |  | — |  |  | 128.1 |
Net revenue | $ | 524.2 |  |  | $ | 79.1 |  |  | $ | 603.3 |  |  | $ | 239.2 |  |  |  |  | $ | — |  |  | $ | 842.5 |
Gross profit | $ | 333.5 |  |  | $ | 53.8 |  |  | $ | 387.3 |  |  | $ | 128.0 |  |  |  |  | $ | (22.5) |  |  | $ | 492.8 |
Gross margin | 63.6 | % |  | 68.0 | % |  | 64.2 | % |  | 53.5 | % |  |  |  |  |  | 58.5 | %
Operating income |  |  |  |  | $ | 49.8 |  |  | $ | 91.9 |  |  |  |  | $ | (71.1) |  |  | $ | 70.6 |
Operating margin |  |  |  |  | 8.3 | % |  | 38.4 | % |  |  |  |  |  | 8.4 | %
| Nine Months Ended April 2, 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 | $ | 545.9 |  |  | $ | 42.6 |  |  | $ | 588.5 |  |  | $ | 253.8 |  |  |  |  | $ | — |  |  | $ | 842.3 |
Service revenue | 77.7 |  |  | 36.7 |  |  | 114.4 |  |  | 0.4 |  |  |  |  | — |  |  | 114.8 |
Net revenue | $ | 623.6 |  |  | $ | 79.3 |  |  | $ | 702.9 |  |  | $ | 254.2 |  |  |  |  | $ | — |  |  | $ | 957.1 |
Gross profit | $ | 401.0 |  |  | $ | 54.4 |  |  | $ | 455.4 |  |  | $ | 143.8 |  |  |  |  | $ | (26.8) |  |  | $ | 572.4 |
Gross margin | 64.3 | % |  | 68.6 | % |  | 64.8 | % |  | 56.6 | % |  |  |  |  |  | 59.8 | %
Operating income |  |  |  |  | $ | 110.7 |  |  | $ | 104.6 |  |  |  |  | $ | (78.3) |  |  | $ | 137.0 |
Operating margin |  |  |  |  | 15.7 | % |  | 41.1 | % |  |  |  |  |  | 14.3 | %
| Nine Months Ended
| April 1, 2023 |  | April 2, 2022
Corporate reconciling items impacting gross profit: |  |  |
Total segment gross profit | $ | 515.3 |  |  | $ | 599.2 |
Stock-based compensation | (3.6) |  |  | (4.0) |
Amortization of intangibles | (18.7) |  |  | (22.7) |
Other charges unrelated to core operating performance (1) | (0.2) |  |  | (0.1) |
GAAP gross profit | $ | 492.8 |  |  | $ | 572.4 |
Corporate reconciling items impacting operating income: |  |  |
Total segment operating income | $ | 141.7 |  |  | $ | 215.3 |
Stock-based compensation | (38.8) |  |  | (39.7) |
Amortization of intangibles | (25.2) |  |  | (30.2) |
Change in fair value of contingent liability | 0.1 |  |  | (0.3) |
Other benefits (charges) unrelated to core operating performance (1) | 3.0 |  |  | (8.2) |
Restructuring and related (charges) benefits | (10.2) |  |  | 0.1 |
GAAP operating income from continuing operations | $ | 70.6 |  |  | $ | 137.0 |
(1) During the nine months ended April 1, 2023 and April 2, 2022, other benefits (charges) unrelated to core operating performance primarily consisted of certain acquisition and integration related charges, transformational initiatives such as site consolidations, reorganization, accretion of debt discount, intangible impairment 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 nine months ended April 1, 2023 and April 2, 2022 (in millions):
| Three Months Ended
| April 1, 2023 |  | April 2, 2022
| Product Revenue |  | Service Revenue |  | Total |  | Product Revenue |  | Service Revenue |  | Total
Americas: |  |  |  |  |  |  |  |  |  |  |
United States | $ | 68.5 |  |  | $ | 14.0 |  |  | $ | 82.5 |  |  | $ | 72.5 |  |  | $ | 14.9 |  |  | $ | 87.4 |
Other Americas | 14.0 |  |  | 4.0 |  |  | 18.0 |  |  | 17.9 |  |  | 3.5 |  |  | 21.4 |
Total Americas | $ | 82.5 |  |  | $ | 18.0 |  |  | $ | 100.5 |  |  | $ | 90.4 |  |  | $ | 18.4 |  |  | $ | 108.8 |
Asia-Pacific: |  |  |  |  |  |  |  |  |  |  |
Greater China | $ | 43.5 |  |  | $ | 1.8 |  |  | $ | 45.3 |  |  | $ | 63.9 |  |  | $ | 1.9 |  |  | $ | 65.8 |
Other Asia-Pacific | 24.1 |  |  | 6.1 |  |  | 30.2 |  |  | 43.3 |  |  | 5.4 |  |  | 48.7 |
Total Asia-Pacific | $ | 67.6 |  |  | $ | 7.9 |  |  | $ | 75.5 |  |  | $ | 107.2 |  |  | $ | 7.3 |  |  | $ | 114.5 |
EMEA: |  |  |  |  |  |  |  |  |  |  |
Switzerland | $ | 13.4 |  |  | $ | 0.1 |  |  | $ | 13.5 |  |  | $ | 18.7 |  |  | $ | 0.1 |  |  | $ | 18.8 |
Other EMEA | 41.7 |  |  | 16.6 |  |  | 58.3 |  |  | 59.5 |  |  | 13.9 |  |  | 73.4 |
Total EMEA | $ | 55.1 |  |  | $ | 16.7 |  |  | $ | 71.8 |  |  | $ | 78.2 |  |  | $ | 14.0 |  |  | $ | 92.2 |
Total net revenue | $ | 205.2 |  |  | $ | 42.6 |  |  | $ | 247.8 |  |  | $ | 275.8 |  |  | $ | 39.7 |  |  | $ | 315.5 |
| Nine Months Ended
| April 1, 2023 |  | April 2, 2022
| Product Revenue |  | Service Revenue |  | Total |  | Product Revenue |  | Service Revenue |  | Total
Americas: |  |  |  |  |  |  |  |  |  |  |
United States | $ | 227.0 |  |  | $ | 44.6 |  |  | $ | 271.6 |  |  | $ | 239.8 |  |  | $ | 41.1 |  |  | $ | 280.9 |
Other Americas | 47.4 |  |  | 10.8 |  |  | 58.2 |  |  | 64.3 |  |  | 10.8 |  |  | 75.1 |
Total Americas | $ | 274.4 |  |  | $ | 55.4 |  |  | $ | 329.8 |  |  | $ | 304.1 |  |  | $ | 51.9 |  |  | $ | 356.0 |
Asia-Pacific: |  |  |  |  |  |  |  |  |  |  |
Greater China | $ | 165.9 |  |  | $ | 5.7 |  |  | $ | 171.6 |  |  | $ | 188.1 |  |  | $ | 6.8 |  |  | $ | 194.9 |
Other Asia | 100.8 |  |  | 19.8 |  |  | 120.6 |  |  | 122.4 |  |  | 14.5 |  |  | 136.9 |
Total Asia-Pacific | $ | 266.7 |  |  | $ | 25.5 |  |  | $ | 292.2 |  |  | $ | 310.5 |  |  | $ | 21.3 |  |  | $ | 331.8 |
EMEA: |  |  |  |  |  |  |  |  |  |  |
Switzerland | $ | 42.2 |  |  | $ | 0.3 |  |  | $ | 42.5 |  |  | $ | 43.4 |  |  | $ | 0.3 |  |  | $ | 43.7 |
Other EMEA | 131.1 |  |  | 46.9 |  |  | 178.0 |  |  | 184.3 |  |  | 41.3 |  |  | 225.6 |
Total EMEA | $ | 173.3 |  |  | $ | 47.2 |  |  | $ | 220.5 |  |  | $ | 227.7 |  |  | $ | 41.6 |  |  | $ | 269.3 |
Total net revenue | $ | 714.4 |  |  | $ | 128.1 |  |  | $ | 842.5 |  |  | $ | 842.3 |  |  | $ | 114.8 |  |  | $ | 957.1 |

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