Ciena doesn't limit itself to just one color of the spectrum. The
company makes transport and switching equipment that increases the
capacity of long-distance fiber-optic networks by transmitting
multiple light signals simultaneously over the same circuit. It
also sells optical transport systems for metro and enterprise
wide-area networks, as well as broadband access products that
enable communications companies to deliver Internet protocol (IP)
services, such as VoIP, IP video, and DSL. Ciena serves
telecommunications service providers, cable companies, large
enterprises, and government entities.
Ciena has operations in North America, the Caribbean and Latin
America, Europe, the Middle East, Africa, and the Asia/Pacific. The
company gets 53% of its sales from the US.
Ciena's packet-optical transport represents 64% of its total
revenue each year thanks to its top products 6500 Packet-Optical
Platform, the 4200 Advanced Services Platform, the 6100
Multiservice Optical Platform, the 5100/5200 Advanced Services
Platform, and Common Photonic Layer products. This segment includes
products used by network operators to increase network capacity and
the speed of high-bandwidth services.
The software and services segment, 22% of revenue, offers
maintenance support, installation, deployment, and consulting
services. Software and services includes Ciena One, the On-Center
Network & Service Management Suite, and the OMEA and Preside
Packet-optical switching, 7% of revenue, is supported by
demand for 5430 Reconfigurable Switching Systems and the
CoreDirector Multiservice Optical Switches. This segment
includes products that create automated optical infrastructures
that support enterprise and consumer-oriented network services.
Carrier-Ethernet solutions, accounting for 7% of revenue,
supplies the 3000 and 5000 families of service delivery switches,
service aggregation switches, and legacy metro Ethernet and
broadband products. Products in this segment support wireless
backhaul infrastructures and business data services.
From 2011 to 20122 Ciena's revenues increased by 5%, but the
company posted a net loss for the fourth straight year. (Its loss
for 2012, however, decreased by 26% with the help of lower
The revenue spike was due to a 4% increase in packet-optical
transport revenue due to higher sales of its 6500 Packet-Optical
Platform. Ciena was especially helped by a 16% increase in software
and services revenue and a 3% jump in Carrier-Ethernet
Holding more than 1,300 US patents and more than 400 foreign
patents, Ciena is focusing product development in all its segments
on new demand for converged optical Ethernet networking products
and services that support mobile devices, video applications, and
cloud and virtual computing.
The company looks to expand in Brazil, India, Japan, the
Middle East, and Russia, and in customer markets that include
enterprises, wireless operators, cable operators, submarine network
operators, Internet content providers, cloud infrastructure
providers, research and education organizations, and
Financial services firm BlackRock owns 10% of the company;
Loomis, Sayles & Company owns 18%.