Ciena’s CEO says the service provider is over its inventory digestion phase
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Also, here's coverage of other key stories on Ciena:
· Ciena’s CEO says he expects North American carrier spending to improve
· AT&T tests 1.6 Tbps on existing Northeast long-distance fiber network
Ciena saw a new wave of growth during its first quarter earnings period, signaling that the carrier spending freeze that plagued optical equipment vendors has cleared.
Gary Smith, CEO of Ciena, said that customers are again investing in scaling their networks, specifically for the anticipated increase in cloud traffic and new AI workloads, including Managed Optical Fiber Networks (MOFN) opportunities with the cloud providers.
Ciena reported that Service Provider revenue in the first quarter increased 14% year-over-year, comprising approximately 51% of total revenue.
Driven by growth in optical networking, switching, and routing, Ciena reported first-quarter revenues of $1.07 billion.
“The supply and demand dynamics that we experienced in previous periods continue to come into balance, and we believe service provider inventory digestion impacts are largely now complete,” he said. “Accordingly, we saw our ongoing improvements in Q1 in revenue and orders with North America leading the way and international markets continuing to show positive progress.”
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Sean Buckley
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