Delivers 8% adjusted operating margin and$0.18adjusted EPS

HANOVER, Md.--(BUSINESS WIRE)--Mar. 3, 2016-- Ciena ^® Corporation (NYSE: CIEN), the network specialist, today announced unaudited financial results for its fiscal first quarter ended January 31, 2016.

For the fiscal first quarter 2016, Ciena reported revenue of $573.1 million as compared to $529.2 million for the fiscal first quarter 2015.

On the basis of generally accepted accounting principles (GAAP), Ciena's net loss for the fiscal first quarter 2016 was $(11.5) million, or $(0.08) per diluted common share, which compares to a GAAP net loss of $(18.8) million, or $(0.17) per diluted common share, for the fiscal first quarter 2015.

Ciena's adjusted (non-GAAP) net income for the fiscal first quarter 2016 was $25.2 million, or $0.18 per diluted common share, which compares to an adjusted (non-GAAP) net income of $13.6 million, or $0.12 per diluted common share, for the fiscal first quarter 2015.

"We delivered strong first quarter business and financial performance, including 8% adjusted operating margin, highlighted by engagement with a more diverse set of customers," said Gary B. Smith, president and CEO, Ciena. “Despite some recent volatility in the broader macroeconomic environment, the demand drivers for our business remain firmly in place and we are well positioned to translate our market leadership into continued growth and profitability this fiscal year.”

Fiscal First Quarter 2016 Performance Summary

The tables below (in millions, except percentage data) provide comparisons of certain quarterly results to prior periods, including sequential quarter and year-over-year changes. A reconciliation between the GAAP and adjusted (non-GAAP) measures contained in this release is included in Appendix A. GAAP Results Q1 Q4 Q1 Period Change FY 2016 FY 2015 FY 2015 Q-T-Q* Y-T-Y* Revenue $ 573.1 $ 692.0 $ 529.2 (17.2 )% 8.3 % Gross margin 43.9 % 43.8 % 43.5 % 0.1 % 0.4 % Operating expense $ 240.2 $ 293.6 $ 226.1 (18.2 )% 6.2 % Operating margin 2.0 % 1.4 % 0.8 % 0.6 % 1.2 % Non-GAAP Results Q1 Q4 Q1 Period Change FY 2016 FY 2015 FY 2015 Q-T-Q* Y-T-Y* Revenue $ 573.1 $ 692.0 $ 529.2 (17.2 )% 8.3 % Adj. gross margin 44.7 % 44.9 % 44.1 % (0.2 )% 0.6 % Adj. operating expense $ 208.4 $ 220.5 $ 197.3 (5.5 )% 5.6 % Adj. operating margin 8.3 % 13.0 % 6.8 % (4.7 )% 1.5 %

• Denotes % change, or in the case of margin, absolute change Revenue by Segment Q1 FY 2016 Q4 FY 2015 Q1 FY 2015 Revenue % Revenue % Revenue % Networking Platforms $ 449.5 78.4 $ 564.7 81.6 $ 413.9 78.2 Software and Software-Related Services 25.4 4.4 26.3 3.8 23.5 4.4 Global Services 98.2 17.2 101.0 14.6 91.8 17.4 Total $ 573.1 100.0 $ 692.0 100.0 $ 529.2 100.0

Additional Performance Metrics for Fiscal First Quarter 2016

Revenue by Geographic Region Q1 FY 2016 Q4 FY 2015 Q1 FY 2015 Revenue % Revenue % Revenue % North America $ 392.7 68.5 $ 480.0 69.4 $ 331.5 62.6 Europe, Middle East and Africa 80.7 14.1 94.0 13.6 111.0 21.0 Caribbean and Latin America 43.8 7.6 45.7 6.6 42.8 8.1 Asia Pacific 55.9 9.8 72.3 10.4 43.9 8.3 Total $ 573.1 100.0 $ 692.0 100.0 $ 529.2 100.0

• U.S. customers contributed 63.7% of total revenue
• One customer accounted for greater than 10% of revenue and represented 22% of total revenue
• Cash and investments totaled $995.4 million
• Cash flow from operations totaled $15.0 million
• Average days' sales outstanding (DSOs) were 75
• Accounts receivable balance was $480.4 million

• Inventories totaled $205.7 million, including:

• Raw materials: $51.9 million

• Work in process: $13.4 million
• Finished goods: $118.0 million
• Deferred cost of sales: $76.4 million

• Reserve for excess and obsolescence: $(54.0) million

• Product inventory turns were 5.1

• Headcount totaled 5,363

Business Outlook for Fiscal Second Quarter 2016

Statements relating to business outlook are forward-looking in nature and actual results may differ materially. These statements should be read in the context of the Notes to Investors below.

Ciena expects fiscal second quarter 2016 financial performance to include:

• Revenue in the range of $615 to $645 million
• Adjusted (non-GAAP) gross margin in the mid-40s percentage range
• Adjusted (non-GAAP) operating expense of approximately $225 million

Live Web Broadcast of Unaudited Fiscal First Quarter 2016 Results

Ciena will host a discussion of its unaudited fiscal first quarter 2016 results with investors and financial analysts today, Thursday, March 3, 2016 at 8:30 a.m. (Eastern). The live broadcast will be available at www.ciena.com, and an archived replay will be available shortly following the conclusion of the live broadcast on the Investor Relations page of Ciena's website at www.ciena.com/investors. Ciena will also post to the Investor Relations page a presentation that includes certain highlighted information discussed on the call and certain historical results of operations.

Notes to Investors

Forward-looking statements. This press release contains certain forward-looking statements that involve risks and uncertainties. These statements are based on current expectations, forecasts, assumptions and other information available to the Company as of the date hereof. Forward-looking statements include statements regarding Ciena's expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words. Forward-looking statements in this release include: "We delivered strong first quarter business and financial performance, including 8% adjusted operating margin, highlighted by engagement with a more diverse set of customers"; “Despite some recent volatility in the broader macroeconomic environment, the demand drivers for our business remain firmly in place and we are well positioned to translate our market leadership into continued growth and profitability this fiscal year”; "Ciena expects fiscal second quarter 2016 financial performance to include: Revenue in the range of $615 to $645 million; Adjusted (non-GAAP) gross margin in the mid-40s percentage range; Adjusted (non-GAAP) operating expense of approximately $225 million."

Ciena's actual results, performance or events may differ materially from these forward-looking statements made or implied due a number of risks and uncertainties relating to Ciena's business, including: the effect of broader economic and market conditions on our customers and their business; changes in network spending or network strategy by large communication service providers; seasonality and the timing and size of customer orders, including our ability to recognize revenue relating to such sales; the level of competitive pressure we encounter; the product, customer and geographic mix of sales within the period; supply chain disruptions and the level of success relating to efforts to optimize Ciena's operations; changes in foreign currency exchange rates affecting revenue and operating expense; and the other risk factors disclosed in Ciena's Report on Form 10-K, which Ciena filed with the Securities and Exchange Commission on December 21, 2015. Ciena assumes no obligation to update any forward-looking information included in this press release.

• Non-GAAP Presentation of Quarterly Results. * This release includes non-GAAP measures of Ciena's gross profit, operating expense, income (loss) from operations, net income (loss) and net income (loss) per share. In evaluating the operating performance of Ciena's business, management excludes certain charges and credits that are required by GAAP. These items share one or more of the following characteristics: they are unusual and Ciena does not expect them to recur in the ordinary course of its business; they do not involve the expenditure of cash; they are unrelated to the ongoing operation of the business in the ordinary course; or their magnitude and timing is largely outside of Ciena's control. Management believes that the non-GAAP measures below provide management and investors useful information and meaningful insight to the operating performance of the business. The presentation of these non-GAAP financial measures should be considered in addition to Ciena's GAAP results and these measures are not intended to be a substitute for the financial information prepared and presented in accordance with GAAP. Ciena's non-GAAP measures and the related adjustments may differ from non-GAAP measures used by other companies and should only be used to evaluate Ciena's results of operations in conjunction with our corresponding GAAP results. To the extent not previously disclosed in a prior Ciena financial results press release, Appendix A to this press release sets forth a complete GAAP to non-GAAP reconciliation of the non-GAAP measures contained in this release.