The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Samik Chatterjee - JPMorgan Chase & Co, Research Division - Analyst
: Great. I had a couple, and maybe if I can start with the gross margin outlook here. Jim, the gross margin outlook that you're providing, I don't know
if you can walk us through a bit more of the puts and takes because it does sound like with the revenue -- outsized revenue growth you're expecting,
you should have a bit more leverage to the gross margin, particularly with most of the sort of new product shipping at that time.
But maybe help me understand sort of any pressures, and also sounds like your sort of pressures from a supply logistics perspective are going
down. So we would have expected a higher number. Maybe walk me through the puts and takes, and I have a follow-up.
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DECEMBER 08, 2022 / 1:30PM, CIEN.N - Q4 2022 Ciena Corp Earnings Call
Question: Samik Chatterjee - JPMorgan Chase & Co, Research Division - Analyst
: And for my follow-up, if I can sort of ask you about what's sort of embedded in terms of supply improvement in your fiscal '23 revenue guide?
Because when we look at sort of -- even the average of 3Q and 4Q, you're above $900 million run rate, and you're expecting that to go north of $1
billion.
Is that generally as you talked about more predictability from your suppliers, and the upside there could be being able to buy more from the open
market? I'm just trying to understand what's embedded in the guide for supply? And what sort of downside or upside to that number can come
from?
Question: David Vogt - UBS Investment Bank, Research Division - Analyst
: I know we've danced around sort of the backlog and the strength of the business question, but I want to maybe take a longer-term view and maybe
pull back a little bit. If I look at your business back from, let's say, fiscal '19 before COVID, and I kind of run it forward through your '25 guidance, I
think at the high end of your 3-year plan would suggest that your business would have grown at a 6% CAGR, which is kind of consistent with your
model.
I mean is that the right way to think about it as we go through '23, '24 and '25? Backlog normalizes and we're back to sort of a normalized mid- to
slightly better growth dynamic for the overall business?
Question: David Vogt - UBS Investment Bank, Research Division - Analyst
: Right. And maybe just a quick follow-up. I know you've talked about backlog being difficult to predict. But can you just share with us sort of what
underpins the '24, '25 from a backlog perspective versus in-period orders and how you're thinking about that?
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