Earnings Per Share Calculation

9 Months Ended

Jul. 31, 2019

EARNINGS PER SHARE CALCULATION

The following table (in thousands except per share amounts) is a reconciliation of the numerator and denominator of the basic net income (loss) per common share (“Basic EPS”) and the diluted net income (loss) per potential common share (“Diluted EPS”). Basic EPS is computed using the weighted average number of common shares outstanding. Diluted EPS is computed using the weighted average number of the following, in each case, to the extent the effect is not anti-dilutive: (i) common shares outstanding; (ii) shares issuable upon vesting of stock unit awards; and (iii) shares issuable under Ciena’s employee stock purchase plan and upon exercise of outstanding stock options, using the treasury stock method.



	Quarter Ended July 31,				Nine Months Ended July 31,
Numerator	2019		2018		2019		2018
Net income (loss)	$	86,749	$	50,840	$	173,103	$	(408,667	)
Add: Interest expense associated with 3.75% Convertible Senior Notes due 2018 (Original)	—		464		—		—
Add: Interest expense associated with 4.0% Convertible Senior Notes due 2020	—		2,624		—		—
Net income (loss) used to calculate Diluted EPS	$	86,749	$	53,928	$	173,103	$	(408,667	)



	Quarter Ended July 31,		Nine Months Ended July 31,
Denominator	2019	2018	2019	2018
Basic weighted average shares outstanding	155,488	143,400	156,013	143,766
Add: Shares underlying outstanding stock options and stock unit awards and issuable under employee stock purchase plan	1,967	1,330	1,936	—
Add: Shares underlying 3.75% Convertible Senior Notes due 2018 (New)	—	3,032	—	—
Add: Shares underlying 3.75% Convertible Senior Notes due 2018 (Original)	—	3,038	—	—
Add: Shares underlying 4.0% Convertible Senior Notes due 2020	—	9,198	—	—
Dilutive weighted average shares outstanding	157,455	159,998	157,949	143,766



	Quarter Ended July 31,				Nine Months Ended July 31,
EPS	2019		2018		2019		2018
Basic EPS	$	0.56	$	0.35	$	1.11	$	(2.84	)
Diluted EPS	$	0.55	$	0.34	$	1.10	$	(2.84	)

The following table summarizes the weighted average shares excluded from the calculation of the denominator for Diluted EPS due to their anti-dilutive effect for the periods indicated (in thousands):



	Quarter Ended July 31,		Nine Months Ended July 31,
	2019	2018	2019	2018
Shares underlying stock options and stock unit awards	253	318	256	2,183
3.75% Convertible Senior Notes due 2018 (Original)	—	—	—	3,038
3.75% Convertible Senior Notes due 2018 (New)	—	—	—	2,125
4.0% Convertible Senior Notes due 2020	—	—	—	9,198
Total shares excluded due to anti-dilutive effect	253	318	256	16,544