Ciena Corp., Network equipment provider, reported higher-than-expected quarterly profit as more telecom companies made upgrades to boost their Internet capacity.
But Ciena said it expected revenue growth to slow to 20 percent in its new fiscal year from 38 percent in 2007, Rueters reports.
Ciena Corporation NASDAQ: CIEN develops and markets communications network platforms and software, and offers professional services. The Company's broadband access, data and optical networking platforms, software tools, and global network services support worldwide telecom and cable/MSO services providers, and enterprise and government networks.
In March 1996 Ciena launched the first commercially available 16 channel DWDM system MultiWave(TM) 1600 Transmission System.The system was capable of transmitting up to sixteen discrete optical channels over one fiber pair.
Developed in the late 1980s, the erbium-doped fiber amplifier (EDFA) was the first successful optical amplifier and was able to replace 16 electronic regenerators simplifying network operations. By enabling network service providers to obtain substantial additional capabilities from their installed plant, the technology could exponentially expand capacity for all network users.
When Ciena became public in 1997, it raised $3.4 billion.
Analysts really like two dimensions of Ciena's operations: Its optical networking products business, which helps service providers increase the efficiency and bandwidth of their communications networks; and its broadband networking products business.
Other positives: Most analysts see CIEN's 2008 revenue increasing about 15%-20%, with a 35%-40% revenue gain seen for this year. Analysts also expect the company to increase its market share of larger-customer accounts.