And importantly, there are leaning into those partners with whom they have longstanding and trusted relationships, and that are increasingly deeply integrated into their business.Yeah. You don’t seem to be overly concerned. I mean, obviously not to be confused with sort of secular demand, I think they’d all like to deploy more bandwidth, and many of them are. I’ll go there and then Scott can probably provide more color to it. Ciena were first to market with both 100 gig and 400 gig, and now we are the world’s first again with 800 gig. Simon, let me take that. We’ve seen it in Europe. Last point, Gary, is an important one because we — as you may have known, we’ve released the WaveLogic 5 technology on both our 6500 and our Waveserver platform. We look forward to catching up with everyone over the next following couple of days. The 800-gig application specifically is addressing where you have high cross sections of bandwidth in a fairly constrained rich environment, a few hundred kilometers type of environment. It’s just the logistics of velocity of being able to get to sites, have access, fly across borders, all those are just slowing down, and that’s sort of weighing on the second half. A detailed reconciliation of these non-GAAP measures to our GAAP results is included in today’s press release.So, needless to say, book-to bill was above 1 clearly.Demand for bandwidth is continuing to grow and competitive dynamics are playing in our favor. But I would also emphasize again, very strong performance on the cable side, we expect for the year. We have five contract manufacturers around the world, two of them are in Mexico, a very resilient network and that we haven’t lost a single day and a CM in Mexico or in Asia-Pac to anything related to COVID.And finally, on global scale, we continue to possess the largest focused optical R&D investment capacity in the industry. What I do see is probably the timing of that moving a little bit to the right. Based on these revised expectations, we are confident in our ability to achieve our profitability target this year. So that hasn’t changed our perspective of the overall market size opportunity hasn’t changed. When we are able to reengage with these new customers and begin to displace incumbency again, we believe that we will go toward that 43% to 45% gross margin I spoke about earlier.Scott, do you want to give a little more color on that?And we have a question from Meta Marshall with Morgan Stanley.With those comments, I’ll turn over to Jim. Q2 Net Income per Share: $0.59 GAAP; $0.76 adjusted (non-GAAP) Share Repurchases: Prior to suspending repurchases during the quarter, we …
[Operator Instructions] Your first question comes from George Notter with Jefferies. Does that help out even more so with 800 gig when you then layer on the coronavirus additional challenges, or is it similar to the other technological rollouts as far as the competitive landscape of opening up for RFPs for rolling out for 800 gig.That’s exactly what we got in the — in Q2. Understanding they’re seeing the same traffic growth demands, and in some cases, even seeing that increase. I guess I wanted to start by asking about the revenue guidance. And basically people could leave their homes once a week or something to go get food. I’m incredibly proud of our team and their collective efforts to continue serving each other and our customers through this time.Sharon, we will now take questions from the sell-side analysts.Yeah.
And in fact, non-telco revenue in Q2 comprised 42% of total revenue, with direct web-scale business representing 24%.Yes, Simon. Our significant investments and focus in three critical areas over the past couple of years have played a pivotal role in our ability to execute through this crisis. Please go ahead.Ladies and gentlemen, thank you for standing by. Adjusted gross margin was 47%. Against this backdrop, our innovation leadership and competitive advantages are frankly amplified. Jim? Please go ahead. Within our Ciena Cares program, we increased our corporate charitable match to 3 times for employees’ donations and volunteering. Stay well.Next question comes from John Marchetti with Stifel.© COPYRIGHT 2020, AlphaStreet, Inc. All rights reserved. I think really irrespective of all those other concerns, it’s just really a rebalancing that frankly is long overdue. This strong financial position enables us to continue to invest in innovation to ensure a strong inventory position to serve customers and to support working capital needs.This transcript is produced by AlphaStreet, Inc.
And if I can just follow-up more in terms of OpEx, but in terms of OpEx planning. Specifically, we now expect to generate annual revenue growth of 2% to 4% for the year. This transcript is provided as is without express or implied warranties of any kind. So we have very broad and deep relationships with them now, and we have a lot of co-development work that goes on with them in terms of our platforms.I would also reiterate that the diversification in our supply chain served us well in Q2.
Amongst the content players, we’ve got good visibility to them.