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Operating Segments and Geographic Information (Tables)

9 Months Ended

Apr. 03, 2021

Schedule of Information on Reportable Segments

The following tables present information on the Company’s reportable segments for the three months ended April 3, 2021 and March 28, 2020 (in millions):


	Three Months Ended April 3, 2021
	Network and Service Enablement
	Network Enablement			Service Enablement			Network and Service Enablement			Optical Security and Performance Products			Other Items		Consolidated GAAP Measures
Product revenue	$	166.5		$	7.9		$	174.4		$	92.2		$	—	$	266.6
Service revenue	24.4			12.4			36.8			—			—		36.8
Net revenue	$	190.9		$	20.3		$	211.2		$	92.2		$	—	$	303.4

Gross profit	$	123.1		$	12.4		$	135.5		$	55.9		$	(9.4)	$	182.0
Gross margin	64.5		%	61.1		%	64.2		%	60.6		%			60.0		%

Operating income							$	20.9		$	40.5		$	(25.5)	$	35.9
Operating margin							9.9		%	43.9		%			11.8		%


	Three Months Ended March 28, 2020
	Network and Service Enablement
	Network Enablement			Service Enablement			Network and Service Enablement			Optical Security and Performance Products			Other Items		Consolidated GAAP Measures
Product revenue	$	146.0		$	8.6		$	154.6		$	69.2		$	—	$	223.8
Service revenue	17.9			14.5			32.4			—			—		32.4
Net revenue	$	163.9		$	23.1		$	187.0		$	69.2		$	—	$	256.2

Gross profit	$	104.3		$	16.0		$	120.3		$	36.4		$	(9.9)	$	146.8
Gross margin	63.6		%	69.3		%	64.3		%	52.6		%			57.3		%

Operating income							$	13.8		$	24.2		$	(28.9)	$	9.1
Operating margin							7.4		%	35.0		%			3.6		%


	Three Months Ended
	April 3, 2021		March 28, 2020
Corporate reconciling items impacting gross profit:
Total segment gross profit	$	191.4	$	156.7

Stock-based compensation	(1.2)		(1.2)
Amortization of intangibles	(8.3)		(8.0)
Other charges (benefits) unrelated to core operating performance (1)	0.1		(0.7)
GAAP gross profit	$	182.0	$	146.8

Corporate reconciling items impacting operating income:
Total segment operating income	$	61.4	$	38.0

Stock-based compensation	(11.0)		(11.7)
Amortization of intangibles	(16.6)		(16.9)
Change in fair value of contingent liability	2.3		—
Other charges unrelated to core operating performance (1)	(0.6)		(1.9)
Restructuring and related benefits	0.4		1.6
GAAP operating income from continuing operations	$	35.9	$	9.1

(1) During the three months ended April 3, 2021 and March 28, 2020, other charges (benefits) unrelated to core operating performance primarily consisted of certain acquisition and integration related changes, transformational initiatives such as, site consolidations, and reorganization, and loss on disposal of long-lived assets.

The following tables present information on the Company’s reportable segments for the nine months ended April 3, 2021 and March 28, 2020 (in millions):


	Nine Months Ended April 3, 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	$	462.1		$	28.5		$	490.6		$	286.0		$	—	$	776.6
Service revenue	71.8			39.0			110.8			0.6			—		111.4
Net revenue	$	533.9		$	67.5		$	601.4		$	286.6		$	—	$	888.0

Gross profit	$	339.9		$	44.3		$	384.2		$	175.3		$	(28.0)	$	531.5
Gross margin	63.7		%	65.6		%	63.9		%	61.2		%			59.9		%

Operating income							$	56.4		$	132.4		$	(79.3)	$	109.5
Operating margin							9.4		%	46.2		%			12.3		%


	Nine Months Ended March 28, 2020
	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	$	507.2		$	34.9		$	542.1		$	228.4		$	—	$	770.5
Service revenue	58.6			40.3			98.9			0.3			—		99.2
Net revenue	$	565.8		$	75.2		$	641.0		$	228.7		$	—	$	869.7

Gross profit	$	367.1		$	49.4		$	416.5		$	123.3		$	(29.1)	$	510.7
Gross margin	64.9		%	65.7		%	65.0		%	53.9		%			58.7		%

Operating income							$	73.6		$	85.0		$	(83.8)	$	74.8
Operating margin							11.5		%	37.2		%			8.6		%


	Nine Months Ended
	April 3, 2021		March 28, 2020
Corporate reconciling items impacting gross profit:
Total segment gross profit	$	559.5	$	539.8

Stock-based compensation	(3.6)		(3.2)
Amortization of intangibles	(24.9)		(24.8)
Other charges (benefits) unrelated to core operating performance (1)	0.5		(1.1)
GAAP gross profit	$	531.5	$	510.7

Corporate reconciling items impacting operating income:
Total segment operating income	$	188.8	$	158.6

Stock-based compensation	(33.4)		(33.3)
Amortization of intangibles	(49.8)		(51.2)
Change in fair value of contingent liability	3.8		4.3
Other charges unrelated to core operating performance (1)	(0.7)		(5.8)
Restructuring and related charges	0.8		2.2
GAAP operating income from continuing operations	$	109.5	$	74.8

(1) During the nine months ended April 3, 2021 and March 28, 2020, other charges unrelated to core operating performance primarily consisted of certain acquisition and integration related changes, transformational initiatives such as, site consolidations, and reorganization, and loss on disposal of long-lived assets.

Schedule of Revenue by Geographic Regions

The following tables present net revenue by the three geographic regions we operate in and net revenue from countries that exceeded 10% of our total net revenue for the three and nine months ended April 3, 2021 and March 28, 2020 (in millions):


	Three Months Ended
	April 3, 2021						March 28, 2020

	Product Revenue		Service Revenue		Total		Product Revenue		Service Revenue		Total
Americas:
United States	$	64.4	$	13.0	$	77.4	$	58.5	$	13.3	$	71.8
Other Americas	21.2		3.2		24.4		12.0		5.0		17.0
Total Americas	$	85.6	$	16.2	$	101.8	$	70.5	$	18.3	$	88.8

Asia-Pacific:
Greater China	$	69.1	$	2.8	$	71.9	$	39.8	$	1.5	$	41.3
Other Asia-Pacific	26.0		4.3		30.3		29.6		3.4		33.0
Total Asia-Pacific	$	95.1	$	7.1	$	102.2	$	69.4	$	4.9	$	74.3

EMEA:
Switzerland	$	18.0	$	0.1	$	18.1	$	27.8	$	—	$	27.8
Other EMEA	67.9		13.4		81.3		56.1		9.2		65.3
Total EMEA	$	85.9	$	13.5	$	99.4	$	83.9	$	9.2	$	93.1

Total net revenue	$	266.6	$	36.8	$	303.4	$	223.8	$	32.4	$	256.2


	Nine Months Ended
	April 3, 2021						March 28, 2020

	Product Revenue		Service Revenue		Total		Product Revenue		Service Revenue		Total
Americas:
United States	$	202.5	$	41.3	$	243.8	$	213.0	$	40.0	$	253.0
Other Americas	51.5		10.3		61.8		45.8		12.5		58.3
Total Americas	$	254.0	$	51.6	$	305.6	$	258.8	$	52.5	$	311.3

Asia-Pacific:
Greater China	$	216.3	$	7.8	$	224.1	$	188.7	$	5.0	$	193.7
Other Asia	71.4		11.3		82.7		89.6		11.2		100.8
Total Asia-Pacific	$	287.7	$	19.1	$	306.8	$	278.3	$	16.2	$	294.5

EMEA:
Switzerland	$	55.7	$	0.3	$	56.0	$	53.4	$	0.1	$	53.5
Other EMEA	179.2		40.4		219.6		180.0		30.4		210.4
Total EMEA	$	234.9	$	40.7	$	275.6	$	233.4	$	30.5	$	263.9

Total net revenue	$	776.6	$	111.4	$	888.0	$	770.5	$	99.2	$	869.7