Ciena Corporation Conference Call Highlights

recently reported its third quarter earnings. Shares of the company are up 7 percent. Below are some key highlights from its conference call. • In addition to these direct sales, the Webscale community buys enormous amounts of network capacity from Ciena's service provider and submarine customers around the world. • In 2014, international revenues were up 12% versus 2013. And over the course of the year, we developed and significantly expanded our relationship with the largest MSO outside North America, Liberty Global. • Our revenue was $2.3 billion, a 10% increase over 2013. • Fiscal 2014 was another demonstration of our ability to consistently raise the bar on our performance. • Our adjusted gross margin for the year came in at 42.1%, roughly flat with 2013 and in line with our expectations. • We remain committed to controlling the things that are within our control and our adjusted operating expense for 2014 reflects that commitment. • OpEx for the year was $816 million below the target we set and communicated to you at the beginning of the year. • As a result of this performance, we saw increased operating leverage in our business in 2014 with adjusted operating margin coming in at 6.5% for the year. • Our adjusted operating profit for the year was $148 million, an increase of 28% over 2013. • We ended the year with $777 million in cash and investments that includes the proceeds from the term loan facility we closed last summer. • During 2014, our business generated $45 million in cash excluding the proceeds from the term loan. • Adjusted gross margin in Q4 was 38% at the lower end of our guidance range. • In 2014 our two largest customers on a combined basis represented 26% of revenue, down from 29% in 2013. • Looking at our fiscal first quarter, we expect revenue in the range of $540 million to $570 million reflecting the normal seasonal reductions.