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Revenue
 9 Months Ended
Jul. 31, 2019
Revenue from Contract with Customer [Abstract]  
Revenue REVENUE
Disaggregation of Revenue

Ciena’s disaggregated revenue represents similar groups that depict the nature, amount, and timing of revenue and cash flows for Ciena’s various offerings. The sales cycle, contractual obligations, customer requirements, and go-to-market strategies may differ for each of its product categories, resulting in different economic risk profiles for each category.

The tables below (in thousands) set forth Ciena’s disaggregated revenue for the respective period:
 
Quarter Ended July 31, 2019
 
Networking Platforms
 
Software and Software-Related Services
 
Global Services
 
Total
Product lines:
 
 
 
 
 
 
 
Converged Packet Optical
$
724,245

 
$
—

 
$
—

 
$
724,245

Packet Networking
71,823

 
—

 
—

 
71,823

Platform Software and Services
—

 
37,312

 
—

 
37,312

Blue Planet Automation Software and Services
—

 
10,530

 
—

 
10,530

Maintenance Support and Training
—

 
—

 
65,936

 
65,936

Installation and Deployment
—

 
—

 
39,802

 
39,802

Consulting and Network Design
—

 
—

 
10,958

 
10,958

Total revenue by product line
$
796,068

 
$
47,842

 
$
116,696

 
$
960,606

 
 
 
 
 
 
 
 
Timing of revenue recognition:
 
 
 
 
 
 
 
Products and services at a point in time
$
796,068

 
$
14,598

 
$
4,804

 
$
815,470

Services transferred over time
—

 
33,244

 
111,892

 
145,136

Total revenue by timing of revenue recognition
$
796,068

 
$
47,842

 
$
116,696

 
$
960,606

 
Nine Months Ended July 31, 2019
 
Networking Platforms
 
Software and Software-Related Services
 
Global Services
 
Total
Product lines:
 
 
 
 
 
 
 
Converged Packet Optical
$
1,897,080

 
$
—

 
$
—

 
$
1,897,080

Packet Networking
216,529

 
—

 
—

 
216,529

Platform Software and Services
—

 
114,139

 
—

 
114,139

Blue Planet Automation Software and Services
—

 
37,977

 
—

 
37,977

Maintenance Support and Training
—

 
—

 
196,002

 
196,002

Installation and Deployment
—

 
—

 
111,746

 
111,746

Consulting and Network Design
—

 
—

 
30,671

 
30,671

Total revenue by product line
$
2,113,609

 
$
152,116

 
$
338,419

 
$
2,604,144

 
 
 
 
 
 
 
 
Timing of revenue recognition:
 
 
 
 
 
 
 
Products and services at a point in time
$
2,113,609

 
$
51,017

 
$
13,945

 
$
2,178,571

Products and services transferred over time
—

 
101,099

 
324,474

 
425,573

Total revenue by timing of revenue recognition
$
2,113,609

 
$
152,116

 
$
338,419

 
$
2,604,144


 
 
Quarter Ended July 31, 2019
 
Nine Months Ended July 31, 2019
Geographic distribution:
 
 
 
 
North America
 
$
617,000

 
$
1,678,599

EMEA
 
169,532

 
413,715

CALA
 
39,261

 
109,635

APAC
 
134,813

 
402,195

Total revenue by geographic distribution
 
$
960,606

 
$
2,604,144



•
Networking Platforms reflects sales of Ciena’s Converged Packet Optical and Packet Networking product lines.
•
Converged Packet Optical - includes the 6500 Packet-Optical Platform, 5430 Reconfigurable Switching System, Waveserver® stackable interconnect system, the family of CoreDirector® Multiservice Optical Switches and the OTN configuration for the 5410 Reconfigurable Switching System. This product line also includes sales of the Z-Series Packet-Optical Platform.
•
Packet Networking - includes the 3000 family of service delivery switches and service aggregation switches and the 5000 family of service aggregation switches. This product line also includes the 8700 Packetwave Platform, the Ethernet packet configuration for the 5410 Service Aggregation Switch, and the 6500 Packet Transport System (PTS), which combines packet switching, control plane operation, and integrated optics.
The Networking Platforms segment also includes sales of operating system software and enhanced software features embedded in each of the product lines above. Revenue from this segment is included in product revenue on the Condensed Consolidated Statements of Operations. Ciena’s hardware with the embedded operating system software and enhanced software features are considered distinct performance obligations for which the revenue is generally recognized upfront at a point in time upon transfer of control.
•Software and Software-Related Services reflects sales of the following:
•
Ciena’s Blue Planet Automation Software and Services, which is a comprehensive, open software suite that allows customers to use enhanced knowledge about their networks to drive adaptive optimization of their services and operations. Ciena’s Blue Planet Automation Platform includes multi-domain service orchestration (MDSO), network function virtualization (NFV), management and orchestration (NFV MANO), analytics, network health predictor (NHP), route optimization and assurance (ROA), inventory management and Ciena’s SDN Multilayer Controller and virtual wide area network (V-WAN) application. Ciena acquired the NHP and ROA software solutions as a part of its acquisition of Packet Design, LLC (“Packet Design”). Ciena acquired the inventory management software solution as a part of its acquisition of DonRiver Holdings, LLC (“DonRiver”). Services revenue includes sales of subscription, installation, support, consulting and design services related to Ciena’s Blue Planet Automation Platform.
•
Ciena’s Platform Software and Services provides analytics, data, and planning tools to assist customers in managing Ciena’s Networking Platforms products in their networks. Ciena’s platform software includes its Manage, Control and Plan (MCP) domain controller solution, OneControl Unified Management System, ON-Center® Network and Service Management Suite, Ethernet Services Manager, Optical Suite Release and Planet Operate. As Ciena seeks further adoption of its MCP software platform and transitions features, functionality and customers to this platform, Ciena expects revenue declines for its other platform software solutions. Platform software-related services revenue includes sales of subscription, installation, support, and consulting services related to Ciena’s software platforms, operating system software and enhanced software features embedded in each of the Networking Platforms product lines above.
Revenue from the software portions of this segment is included in product revenue on the Condensed Consolidated Statements of Operations. Revenue from services portions of this segment is included in services revenue on the Condensed Consolidated Statements of Operations.
Ciena’s software platform revenue typically reflects either perpetual or term-based software licenses, and these sales are considered a distinct performance obligation where revenue is generally recognized upfront at a point in time upon transfer of control. Revenue from software subscription and support are recognized ratably over the period during which the services are performed. Revenue from professional services for solution customization, software and solution support services, consulting and design, and build-operate-transfer services relating to Ciena’s software offerings are recognized over time with Ciena applying the input method to determine the amount of revenue to be recognized in a given period.

•
Global Services reflects sales of a broad range of Ciena’s services for maintenance support and training, installation and deployment, and consulting and network design activities. Revenue from this segment is included in services revenue on the Condensed Consolidated Statements of Operations.
Ciena’s Global Services are considered a distinct performance obligation where revenue is generally recognized over time. Revenue from maintenance support is recognized ratably over the period during which the services are performed. Revenue from installation and deployment services and consulting and network design services are recognized over time with Ciena applying the input method to determine the amount of revenue to be recognized in a given period. Revenue from training services is generally recognized at a point in time upon completion of the service.
Contract Balances
The following table provides information about receivables, contract assets and contract liabilities (deferred revenue) from contracts with customers (in thousands):
 
 
Balance at July 31, 2019
 
Adjusted Balance at November 1, 2018
Accounts receivable, net
 
$
798,884

 
$
799,011

Contract assets
 
$
74,348

 
$
31,380

Deferred revenue
 
$
145,030

 
$
140,704



Our contract assets represent unbilled accounts receivable where transfer of a product or service has occurred but invoicing is conditional upon completion of future performance obligations. These amounts are primarily related to installation and deployment and professional services arrangements where transfer of control has occurred but Ciena has not yet invoiced the customer.

Contract liabilities consist of deferred revenue and represent advanced payments against non-cancelable customer orders received prior to revenue recognition. Ciena recognized approximately $77.4 million of revenue during the first nine months of fiscal 2019 that was included in the deferred revenue balance at November 1, 2018. Revenue recognized due to changes in transaction price from performance obligations satisfied or partially satisfied in previous periods was immaterial during the nine months ended July 31, 2019.

Capitalized Contract Acquisition Costs

Capitalized contract acquisition costs consist of deferred sales commissions and were $13.2 million and $13.6 million as of July 31, 2019 and November 1, 2018, respectively, and were included in other current assets and other assets. The amortization expense associated with these costs was $12.5 million during the first nine months of fiscal 2019 and was included in sales and marketing expense.

Remaining Performance Obligations

Remaining Performance Obligations (RPO) are comprised of non-cancelable customer purchase orders for products and services that are awaiting transfer of control for revenue recognition under the applicable contract terms. As of July 31, 2019, the aggregate amount of RPO was $1.15 billion. As of July 31, 2019, Ciena expects approximately 83% of the RPO to be recognized as revenue within the next twelve months.