Ciena (CIEN) 31 Aug 232023 Q3 Earnings call transcript

Good morning, everyone, and welcome to Ciena’s Fiscal Third Quarter 2023 Financial Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please also note, today’s event is being recorded.

And at this time, I’d like to turn the floor over to Gregg Lampf, Vice President of Investor Relations. ahead. go Please

Good third Jamie. welcome Ciena’s to Thank results morning, conference fiscal quarter call. XXXX you, and

On the Vice call and today also is Gary Smith, Q&A. for CFO. Products Services, McFeely, with Global us Jim President Scott our of Senior President and is Moylan, and CEO;

addition call well that presentation quarter. press from reflects discussion as and In certain release, to highlighted posted the investor have to an section Investors accompanying this as items the of the we our website this

recent our dynamics or to Today’s release. is results our measures view our speak as of market today today’s comments certain in a non-GAAP included outlook. performance, on current Ciena’s non-GAAP results to our operations. and business our adjusted Our of discussion press includes financial of A GAAP drivers measures these discussion reconciliation well as of of

guidance Before you remind based the strategy, quarterly certain statements. actual markets, Gary, Such turning assumptions statements, be its outlook, that during and the opportunities and annual regarding our to call our making today. and discussed the call, materially forecasts we’ll and discussion forward-looking and I’ll including expectations, and of on include differ long-term financial from over this that to current could Company results risks uncertainties cause statements which market are and

and we’ll statements, relating shortly forward-looking after, mentioned outlook, included important encourage on that of whether investor consider to them. such presentation post our in are Assumptions this you call the or part to an we

in XX-Q which result with by otherwise. no of context a our update future Ciena or recent factors September in obligation filed statements call, as should most upcoming the information of in in also filing, and the filing Xth. whether forward-looking discussed be this information, risk be the new SEC assumes the events conference Our viewed to will XX-K detailed our

follow-up. Also, will and as who October attending yourselves much investment the one for possible with one community will interested. Q&A Jim Please meeting you investors limit those today, you’re will Xrd. we I us out if to Moylan ask question be we’ll As reach on that in to and as and always, be offer though Xnd ECOC,

With over Gary. the call to that, turn -- I’ll call

good and everyone. Gregg, Thanks, morning,

third Today, reported quarterly of an including fiscal year-over-year. strong $X.XX quarter revenue results, we increase of XX% billion,

Our included margin adjusted metrics $X.XX. adjusted XX% of profitability results solid with operating quarterly EPS of and

in look increase. for as a year confident revenue XX% delivering to growth are to continue We we given with And year-to-date bandwidth very forward, continues fact, demand secular are we strong capture market that as particularly we share.

bandwidth fact, include supply the as of applications the remained years, for that out drivers long mobility, automation the network. has intelligence And more cloud, growth XG, term. recently, through These consistent over artificial and In very move growth towards even recent chain are of the strong durable they underlying period constraints.

business, dynamics number and forecasts; collectively industry-leading Number which and orders; element these. just market ultimately is demand of we direct and turn and two measure indicators: our number pipeline a services, These in technology reflect not three is customer three, drive demand one which for in shipments, backlog through our single

it thought to into me each indicators of these across be might I So, we’re demand. what helpful provide seeing some insights of for

Starting firstly with pipeline.

out of customer very of they customers we notably, activity are all data the cloud our seeing traffic as requirements Most coming We into of WAN. ensure and are to readiness their machine network encouraged learning level are across and near-term regions segments. the overall center work by signs and the that seeing AI with for we early

been impacted factors. directly With recent respect to orders new several orders, of in flow has the by quarters

supply-constrained prior typical and both customer inventory order higher than then ordering in resulted levels. large decisions in the customers Specifically, environment backlog

to lead place times recent the compression addition, for our customers of advanced reduced orders. need In rapid has the

quarters. reflection new result, of we good for flow order expect really been underlying of couple demand. over order to has this revenue a of not in below been this continue past another and the a has As Therefore, quarters meaningfully flow couple isolation

to orders an we however, higher by led orders starting new uptick up in expect are slightly QX, providers. cloud were in we orders, see Now, and QX. in Overall

the believe recent through of we indicator we Importantly, that cloud to flow will customers demand, uptick a in a to which from service orders is provider of believe rebalancing and begin this leading coming in quarters. customers our supply

backlog. finally, And

had our than we of lead far increasing everyone mid-single-digits. turn in to of times. is previous remind which and it have from terms period this share continue that larger translating And an the and competitive would our outsized this backlog absolute is have backlog gains, any relative I the so constraints have as elongation to into revenue, into our significant advantage. of still been which backlog We market supply competitors, in resulting is the resulting testament and approximately year both

and with faster trusted on levels. considerable expansions customer new and Ciena increasing relationships strong will increasing; market even demand revenue FYXX $X.X Against that that supply backlog drivers versus is expect our several for strong backdrop, is market time. I encouraging and technology gradually now to exit billion, very is demand alignment. and And activity platform approximately has our this through than We never we into better leadership, deliver over improving; think been coming positioned Fundamental with customer year. this introductions is growth are business

from to run XX% Jim, I’ll Before the year-over-year. it up Optical turning highlights through quarter. was revenue quick some over

optical line As expected, in the the much growth in of was quarter our systems.

system and record systems, provider network a and cloud fact, content and revenue margin revenue of opportunity. driven line line by growth industry XXXX the in expansions. shipping scale a was RLS the expansion strong future only in is, next-gen is as our in QX and RLS, Specifically, shipments indicator serves reconfigurable that quarter for at

well the the with WaveLogic increase we a our by even driven is XXX. Routing XX% primarily year-over-year, QX first clear generally received added quarter, to our for more We new example revenue leadership WaveLogic total customers before also was X quarter, in our the and for it And XX also was available. in The order our customer in sales platforms. the in customers Switching QX bringing than aggregation count the Extreme, XX access up addition pipeline. of and of new of growing portfolio and technology X for

continue to and also in We general area, efforts this access routing, broadband particularly TAM around opportunities. advance our coherent expansion and PON technology

the quarter. We WaveRouter our for first also secured this platform customer

and our the industry’s controller, leading MCP. those on now as a with domain of related quarter domain up is And strong reflects year-over-year. growth Notably, platform. maintenance know, more revenue apps XXX MCP multilayer software worldwide nearly the and our leverage Platform the Software advanced primarily to controller XX% Services was services, customers This customers in than we

In we these for added QX, XX fact, apps. advanced in customers

relationship we threshold customer segment. in the of the non-telco year-to-date, this service provider. to included a XX% have provider further, XX% Shifting major to service We customer customers. revenue under out XX% Further, record and our pipeline. year-over-year from one high. Tier to our And a overall to direct up expansion X% important in million, Switching network, that the and their X year-over-year, revenue above strategic which quarter, a million. Panning portfolio, just customers revenue in as Tier growing another full revenue with continue had of little increased with example including activity cloud X $XXX a Revenue quarter total for U.S. way XX% $XX one came quarter recently example, provider By provider up a multiyear year-over-year Overall, QX. to customer was we in which secured period. they the growth is win Routing was cloud our XX% subsea in in well enhance the continue of was same

And with in year-over-year. Pacific was this year, at Asia a perform $XXX and continued of expect $XXX respect FYXX over nearly just for well. revenue very all continue. EMEA last million more to And just we to in year-to-year strong to India XX% compared growth than fiscal region, remains QX, with finally, million under total revenue that solid to geographic of also again XX% contributor in up of regions,

Importantly, in taking QX, to region as our we the grows, expect in across on we begin several pipeline new wins design FYXX. revenue secured which

executing So confident are forward. we are we well in as and we look believe summary,

pipeline from We and customer secular benefiting strong demand our increased activity. with growing are

We and TAM, are our gaining and increasing are our we expanding and competitive new backlog platforms advantage, to market converting revenue share. to bringing market

financial to elements on With of that, over will additional the it Jim? all detail results. about Jim I to turn QX and speak more provide these

everyone. Gary. morning, Good Thanks,

design systems was delivered outstanding million. adjusted of $XXX at over in billion the we the in and operating financial XXXX. product expected, fiscal XX% XX.X%, end expectations, expense We results. the QX revenue our QX margin was quarter Total towards up high shift $X.XX mix reflecting of gross third QX Adjusted that quarter was

adjusted respect of income QX, and profitability adjusted we net $XX.X in XX%, delivered of million to adjusted $X.XX. With measures, EPS margin operating of

addition, In adjusted in $X $XXX.X and operations generated million. cash EBITDA we of from million

the QX $XX in and last went ended up from we approximately levels with third billion Finally, Inventory $X.X in investments. quarter quarter. cash million

on of mix yet deferred an of taken to but expected, increase to we to product saw delivered the in from in also result sales customers a changes As products cost that not we of which delivered revenue. customers

QX be end inventory of that we to roughly We We fiscal million total the the fiscal approximately to third total QX, $XX value. we this X.X And at bringing it down to end of QX. in in an year, expect of year-to-date repurchased million $XXX be our Since during of in ‘XX. shares, expect additional for quarter. shares have approximately million $XX million the repurchased to equal

will million that We of during this we fiscal in shares approximately year. expect continue repurchase to aggregate an $XXX

guidance. to now Turning

presentation. about that reminder, in we to assumptions a As outlook detail key all I’m reflects our provide the earnings the

expectations we consistent the provided guidance on year Our that earnings the are with call. for fiscal last QX full

low range of mid-XXs fiscal to margin we gross billion, to Specifically, billion of fourth adjusted for deliver and in adjusted in approximately expense $X.XX $XXX operating the a the quarter, range to revenue $X.XX million. expect

With our context XXXX, our when a it’s we we important respect is year But three-year for targets to out provide provided laid view when we QX December. in report results year our practice, remember expectations next normal our December. of as detailed the to will fiscal last we

Specifically, our we period linear, would ‘XX compound fiscal particularly to fiscal over year which expectations revenue we for XX% and would ‘XX, rate growth given said be be three-year growth in ‘XX deliver. not revenue from will outsized that fiscal to XX% the year annual

period. still comfortable that those with for are We projections three-year

fiscal to growth Specifically, be year. ‘XX a we expect

market We expect the than to grow to take also market share. faster and

close Before environmental stakeholders. we to sustainability to which out I want commitments highlight strengthen science-based our of targets, support our recent announcement the call, and

levels. preindustrial and reduce warming targets gas indirect Paris efforts Celsius with decarbonization our us align Climate to greenhouse science-based also limit to Our X.X our degrees They commit above global the to direct emissions. Agreement

of down the drive goals the both of our encourage Ciena to you of Importantly, our will networks environmental achievement recent and I help customers’ review impact across the announcement. globe. this

say is in will reflected that the pipeline is bandwidth and I recent growing, demand closing, and strong that and for In trends in in demand our orders.

going the revenue expect and absolute We strong continued and a forward, QX market in to both year share. in close growth in in terms

now the analysts. we from Jamie, take sell-side will questions

[Operator Vogt Instructions] Please of from Our UBS. David come go first today question will ahead.

you’re just in sort the maybe combination terms from six follow what talk directly Great. you’re would the to an or color been it driving web-scale? then related What’s in of order of the that perspective. digestion thereafter maybe optimization what orders about speaking four maybe why under Thanks. Thanks, inflection guys. Is I that’s investment an point love of perspective? closely last transpiring Can quarters, SPE seeing and sort sort it to more of you inflection you AI? just this on for of think maybe inflection from is there orders get of from and AI you’re a some or seeing

chronology quarters terms absorption. I first first were their were of pull kind is of supply-demand do the as we’ve this the that. the through for back few the David, would say, gone Yes. of of web-scale deployment in that to to sort alignment last issues generally, They and the reschedule

QX, working they’re to first beginning new by they’re new still their which that need little center. And go, think to machine was specific are through but and really learning got that, we’re QX that what’s probably more in seen got, driven the things in that to I orders the of specifically backlog and the time new existing the tagged, of coming their out the way be traffic preparing is now for in AI encouraging a start seeing to addition for shipped we’ve to drivers. applications It’s cloud players. data we’ve sort see

encouraging. super So, that’s

the mean, reflect the of into the providers to first first think to were the which the I it, traffic speaking, which spills generally. makes cloud challenge. the this to come sense. sort providers will not of that through growth activity couple will generally providers least of service general flow later, generally And in and They’re go just traffic flow cloud the of I quarters And a fact that. typically, through service out the from of

So very around we’re indicator the orders, that encouraging this and I is alignment think first perspective that is leading now our is lead user ultimate demand. really getting times and

Our next come Please Barclays. question Long from today Tim ahead. will of go

hoping a provider service the of kind on Thank you. piece. two-parter I was

new of & little Any included any extension First, & Routing U.S. renewal, bit Gary, cases, of the just that on as of Switching new mentioned far scope some or Could which Switching to Tier use agreement? as the you kind a talk there? side, particularly changes X that Routing. you kind

maybe on, Thank like talking you looks about we you. the get do following that cycle you think web-scale as do with you provider the at to the providers? -- are the then it were players service for telco web-scalers, currently? And they’ll service just When are phase secondly, for in where think the and

Yes. address me then take Tim, first I’ll providers. last the one X Tier issue the about let and service the

lot it, Tier really of with X, of service pretty little obviously, a providers. talk view bit a me large. more qualify best mean, and I Our when let close, we’re we about the

really further dynamic that chain, with internationally America. This We’re not supply service the did of we providers. ordering really talking given see about ahead, out North dynamic

Tier really I here would North American X target So, the my players. to reply

cetera. I of around understanding that really, their another quarters would them and with et I challenges couple Tim, think that. deployment we’re absorption suspect, very we’ve close around of what people, got are of equipment,

X sort service something like the of with Tier mid-’XX, So that providers.

get think I a want beginning them up with do that But catch increasing that? them us. quarters lead the reduced see into to take will you Scott, it do market signs in some with more now We’re and as see times be couple are alignment well. we before for to

Yes. next-generation And, technologies basically we it the infrastructure metro. time of includes to provider, obviously way that extension their all scope of transitioning on their well. agreement a X for an relationship of the Tier with think in have fiber-based service is the the it that as And extension to with core of infrastructure Tim, across them their relationship and our and

whole cost much with, very so cases, relationship next-generation a technology new use it’s the So, not but evolution.

of Our go next question today will come from Please George Jefferies. Notter ahead.

about sense the are and Is improvement. then I orders about just up presume, quarter where improvement? said was a at here. order curious few significant sounds content the of they’ve then backlog where kind definitely were lead the sequential times. improvement? soft of magnitude in the on improvement? I’m soft, of and strength of last talk provider us -- book-to-bill You I the interested some the quite you wound sequentially and give end you Can the also it Maybe the And like it improved, commentary the a can scale order order quarters, you that the product us Thanks. give also, Just for ratio? levels about

Hello George, Jim. I’ll take it’s that.

do that below as QX. orders opposed in that revenue. believe higher expresses QX called in the we or year First end backlog We more of to that will will last to all, And minus at be line billion $X.X the that with get orders at our we QX the billion, now like of expect that of very quarter. slightly backlog much really expectations. $X.X believe end our the lower backlog was had in be plus the We

that quarters. from said a think phenomenon few in continue But the those increase Gary back going to you can is with QX. sort to is of I what of for into numbers, range As QX orders the

it. great. now. lead those just Got times, curious product That’s where then And about are

improve. -- year that them year Last we George, quarter, fiscal we week -- on and you’ll times. we Yes. at our approximately continue lead as expect entered said remember, to lead half in product times, to XX we’d the said into

there expect probably that, standard in the the average across portfolio, but here on high-teens improvement As and continuous we -- those to continue we today, there’s it is deviations would real quarter-over-quarter. to the shows sit there, in

today of question next Simon James. Raymond Please from is Our ahead. Leopold go

or got a just bit to strength is couple wanted little sort just there’s or transition could you that the not wondering you ramp past, of on if the And like been more of quarter that. customers, get year the the full a more before see pause whether clarification, in a long-term has expectation. next I quick or over I’m trending It is linear in know? whether on customer XX% you’ve granularity Thanks. a over sounds and had this it’s kind of quarters how any hyperscale let optimism. that you us the XX%

The George to mean, answer to to growth question the last (sic) everybody, revenue your [Simon]. this remind I would close guys on just year. XX% hyperscalers, these with we’re yes, I say is

So, issues into the into the of all the of the that’s center, regardless gets happen it, they’re and them, it despite it in lives prioritizing clearly network public the network when cloud. applications lifeblood still their the around data of efficiency what for your sort rest because

build out really seen in not the that terms very of commitment any we’ve So, off networks back their to reason. for

point look and piece. and and the play of in to it and I believe learning already traffic incremental what to time timing be knows dynamics cetera, at that that some And of will will think if that have around out network AI, seen modeling But you et who the you here. machine how over the the we’ve

of that proportion cloud We’ve that about Jim any So, the is providers from let go for year. next want as they talked cloud of we’re backlog got that seeing lot we players. up through a not a

to a we So, year. them expect strong year with have next

of of that we but numbers, from the XX% because expect Now, at rule it’s still a be rate, the cloud to going growth strong year providers. large not very

Great. now the quarter versus quick And did and where then the in obligations, they performance Remaining just how are they trend follow-up. prior? a

are still They but slightly down, strong.

Okay. Thank you.

$X.X billion. billion $X.X from

today next Securities. Instructions] Michael Genovese [Operator of Please ahead. come Our question go from will Rosenblatt

being here, each ‘XX lower with be would ‘XX in Congratulations I about you. reason, talk three-year say. the the there are outlook, instance, of terms a consistent of Thank fairly about those should thinking improving coming we or ‘XX? off CAGR, as on But is outlook years you even ‘XX, the for versus other, strength or actually

that today say the is you I’d is what going three to All can back XX%. the to said and that growth next is on how average over into Speculating right we average of something whatever rate the ‘XX now, it ‘XX And do in year. get be XX% to for going years those this to trends XX% do going XX% to between years based Mike. we’re think is on two to not to we’re you

Okay. take thing, to Well, that Thanks for me. it ‘XX. that guys. good That’s there’s I confidence meaning be in a

Thanks, Mike.

come Samik Morgan. our go ahead. Please next Chatterjee will And today JP of question from

But And if as a the a specifics, should Tier how year the And given vertical telcos well, in made I well activity from interpret conference to coming of grows please? have have much will around the year? comments follow-up. start I a as is seeing orders, maybe get that you’re or thoughts you’re confidence recent the the can that next there I not I year. then couple. or Any next quick of that, that X uptick sort outside cloud growth growth telco seeing you with as a just the that as into be the outlook but

our activity, it’s which The confidence, very I combination we pipeline, Gary customer because of demand, strong. described that a customer and said is is captures activity way think,

to in want RFP. a of conversations of a for the around customers We’re world to do year. we’re with next equivalent lot And of what the middle they in lot

is of all, So, first activity strong.

revenue expect to trend and start they upward a to backlog, players. were from to see of high a orders, which Secondly, still in convert year. we that And next thirdly, we the did remains lot web-scale

we feel very it’s three elements Samik. about, all So, demand good really of that

million about pre-pandemic, of follow-up exiting to hold. still you’re what other which generally, you to more And intact how that XX% So, you the is back to around sort you Jim, was the parts I terms was plus? end -- tracking inventory level, to that to of about so $XXX that want you $XXX of for plan were does window? or of sort guess When means now, you’re like do to and should pre-pandemic want million the how get in your that like plan plan, how that we XX% a that which three-year think carry are by thinking year, you compare carrying sticking about, through inventory right plan the that to of outlook,

we our as expect Yes. say that exact has Without our chain supply down inventory we as through changes in gone going next revenue past. supply That’s we a our next in I you will good inventory on have and the that I chain will today. more give to what the significantly very than is commenting bit expect carry expectation likely compared number. given year, we what year. the an the a be to do do come won’t and we revenue sit year, to here levels

probably But X where believe. recall at our be believe, we for need I we X ran buffer going we used times. at about to next times. in You’ll The it’s many inventory that question that year, forward going we know to turns. is and exactly don’t that that, below quarters, stocks run where means that come up will for end I X that down X we range. and given don’t will between -- that

come question go Please ahead. of Alex Henderson today next Needham. Our from will

quarters, optical often shipments and transceivers significantly clearly, those a generate three period, They was of orders margins. carry lower future systems key line So driver two, the the in quarters four of out.

going optical out the in think and that some line whether you’ve change So, points mix over implies how the margins at forward? expansion talk mix the shifts can to shipping as as Should about the improvement transceivers forward periods the systems year? margin a will couple of of next basis been in over you expect of the we time hundred you here, the some shipments point

exactly encouraging all say the terrific. ship that there you putting think I can track this, RLS RLS highlighted where we’re would dynamic it mean, adoption the Alex. position one. I has this we’re right I now that a I large And scale. basically. in out very mean, -- it’s the of been is in we And

that’s think dynamic. would encouraging year, because over margins of time. is this supply a generally ameliorate. beginning not I I very cost So, the And that guide will the chain to expect haven’t for in translate into also, again, to And associated you of would of but -- position we’re sort improving modems because next got expect I

think normalization chain bit I of a take laying mix overall So all little from plus view the gross costs better we’re view, going of that margins a those point supply combination to track more of the a forward. a point point a advantage things, of margin two higher as of we from to should

gross the the you chain on impact could quantify ‘XX So, supply of margins?

hundred We get back or and next set it year. this year, a of points will XXX, XXX couple basis

question, assume decision. I a this managerial last And is OpEx. the

progress So, OpEx psychology next spending into of sense to us is end what we of as and the can some you year the on give year, relative conceptually? just through Thanks. your

intend this invest we Alex, through to over cycle. As we’ve many said quarters,

in challenger will it’s the a our invest leading space, to are Routing the in expect R&D forward. have in we active investment both increase increase we technology, space. come, very in and Routing to and continue there. has But in continue R&D position that going have and Switching We That’s and and where that And our optical program to in and important a in optical we we Switching. Switching Routing

ahead. today Meta Stanley. question Marshall will Please from go come of Morgan next Our

just by Great. greater kind your that important how their what guess, of in of commentary is, through inventory will guys coming providers kind a impetus -- And next about service of question actually can projects believing levels get having guess, is are kind sense year? taking year the new that just are of quarters. of I inventory working just trying virtue I what versus them into Thanks. on you to just place. the is Maybe grow that just of by this improve

is, commentary, the or uniform some various the cloud And cloud clouds vendors? kind kind is of there then, between pretty cloud, puts the second still and and are of on question that takes that Thanks. improving across

let me Meta, the first take that. part of

of I terms to providers lens talking the projects. of service answer this, folks. visibility And this the pipeline these when In we’re a question. elements. It’s want close this obviously, their qualify and again, Tier of here we’re and confluence providers, service X through American I North It’s into to very activity

and things are be have of relationships inventory various of and have them. that elements have We We good all with got do to strategic now manpower a absorption rates that. handle deployed on their and to the their what

have backlog And So, as we with that. them well. still obviously, visibility to good large we pretty have

it’s elements. So, those all of

broadly This absorption of couple a really before capacity I in there of rate will quarters, of would that it I gets another think to from strong view, stress is the that. think continuing they’re into I be alignment. of its demand But see broadest point sense. about sort

think I have we So, pretty a to view those good folks.

And X% globally to of providers we’re up height at I that. and of period. just can as through period XX% with putting the growth, during we’re mean, the as service will, the that carriers, coming even that just revenue obviously, continue demonstrated grow we’ve even we it

we would around business large withstand players. such I two about term challenges. that that how balance our the and can widespread, those three see the the us high-growth the seeing cloud business can question much as kinds you more areas So we’re think, India your to of balanced subsea, providers, of cloud of I shorter with a players to gives say

evidence, one. have it’s we So, not just

Meta. terms different it talk a encouragingly dynamics, different. are of Now homogeneously, we very and that. them, business are We number their in models all I But say very would across very they’re them of about different are their seeing networks but

question will Capital. come today next Please Greg of go Our WestPark ahead. Mesniaeff from

that mentioned beyond. us up I the you clearly quarter for on can in the you view linearity picking how this and side are the next some of on number wondering DSO see if Thanks. point. was was give quarter the quarter and And You at progressing XX. pretty at orders the linearity the high

business reflect shipments It’s to last backend be our the up the the as fact quarter, just -- that and in loaded. tend that. result, sort month. we that of same with in big And DSOs That’s just in We shipments that of quarters end the those month collect a way don’t works.

that’s DSOs it’s which And the frankly, actually slightly more of than the our quarter, the previous else. quarter. They’re number So that down linearity why high. drives are anything from

And it. down assuming draw can as there haven’t give backlog your of give so, I’m or us you indication just many, a as some regarding data and to but us do any been you quick if any Got follow-up, metrics continue could or indications points you Thanks. that. cancellations? just

us. from service starting put on but push small orders they players, We backlog. cloud to providers our also the And out they a the did us orders at advanced they companies supply orders to very some by material was of had at the the was the looked that delivery followed had put and dates. a Early as amounts on, chain few on pushed new started lead them held They cancellations looked pushed big improve, orders, customers, as with number of the to Gary on said, the started they have that who not of out. at to the that first, times amount

They just dates. sort Our backlog the is -- way they the view has have delivery changed integrity. of high

not we considerably. that seen in the Greg, slowed we’re few de that that dynamic quarters, that, having cancellations, have both terms -- not pushing change of of What has add has small for last ameliorated the would have stuff I been dynamic absolutely. -- of over absolutely, out even But -- cancel rate we minimis, is that’s any

and good when. pretty visibility have want into we So what they

from will FBR. Our next Please ahead. question Riley come B. Kang of go Dave

providers service other position are the India. What is on we major mainly about there? question your Is Jio? My it inning What with in? two

day just sparkling that cricket -- into five-day think if you’re cricket to on a I match. we’re use test the I we’re sparkling cricket, the cricket analogy, would -- say of first

the a to I way it’s market in fastest-growing mean, So, got internet the go. basically long world. it’s

And that. a of perspective, it very You’re the long way mobile a about where they’re internet. to go still with there’s consuming very, talking most from

And I now. would broadly also say, Dave, based that it’s

I think the view settled structure of from down. industry an point has

players, of point which as And seeing I you’re view number there. one both been growing it’s market India indirectly, system of we’re for position. got in directly and there, growth three activity a share from major fastest -- three there major telcos, time. and obviously then the well, you’re seeing a landing think long we subsea all got We’ve in our across connectivity also all cloud also plus the You’ve

Ministry on government, the like Ciena. networks of things So, based Defense

So, we’re seeing whole very and the strong activity, shipments orders across that of spectrum.

I think opportunity we’re I a growth And folks. think broad-based. multiyear very in these it’s with

ahead. go Northland of [Operator come Instructions] Markets. Please Tim our Capital next will from And question Savageaux

quarter. much Good It last came down like Hi. less morning. significantly your looks than backlog

be quarter? I’ll So, want XX%, just on significant what the you subsea, from in stuff, if what And And book-to-bill really talking driving customer, of almost how make that? count to interconnects, want what at And QX applications type about a data center was uptick might is, one is your But, reading you And extent my more the concentrated sure sequential. all as in XX% guess, we’re I’m are I given almost in could whether I was thanks. concentrated all, seeing long-haul that? how what cloud, that order comment cloud follow-up. there, the that’s orders I’m to I pretty ask that to in right. in

Tim. Thanks,

I of multi would Let order slight I say -- questions. a describe it as uptick. first would the as the describe large. me wouldn’t take I it

Our of think in And we well. backlog point I I in view. alignment came think is now out orders direction momentum bottomed did orders up. is point it’s go that we gather as QX really on obviously, the the -- in our and from And -- will right more the an heading think

that the It’s uptick, come will also cloud but next we’re of applications also that it we players. across couple was the think quarters say which some would gives I that providers based amongst well, not just also a reasonably begin solid of In service cloud to us point the cloud-based, out. of the some seeing. it’s over which view terms various encouragement that comfort us the one, as from broadly gives were

particular of terms in Scott, applications...

then We Yes well Tim, private center strongly data I submarine obviously, mean installs their falls can really into cables. And participate they is on set our position they segment where backbone. own across that cap the customer in their on have Their where own three applications. interconnect infrastructure. as metro

that’s of seeing XX% those, up all are sort of in broader three growth segment. sums and to the We year-to-date the across growth what

not In the have to a infrastructure. parts to that, addition their or there around world to they chosen few able own where own are not are quite

they pull on of America. the So, revenue, outside significant particularly a indirect provider have service North

we remarks. back like Gregg the any of over for I’d turn will question-and-answer conclude conference this President to Vice At session. to Investor closing Lampf, time, the Relations,

Thanks, speaking look to the We over ECOC. during it. events with various Jim you. day weeks. you I Thank and the today. everyone, as several reminder, again, for you at be at We appreciate Also, next will joining us seeing and a forward

to interested we’ll meeting please be there, do we’re you’re while in and out, reach so. If you. us happy Thank with

The conference presentation. you concluded. has today’s now attending Thank for

You disconnect. may now