Ciena’s Carrier Ethernet Services Delivery unit, which includes equipment used by some operators for mobile backhaul networks, accounted for 9.3% of total sales by revenue during 3Q 2011. Carrier Ethernet sales volume grew 30% quarter on quarter to move from $30 million revenues in the third quarter of 2010 to $40 million in Q3 2011.
CEO Gary Smith told analysts that with tighter packet networking integration within Ciena’s Carrier Ethernet products, the company now had “expanded packet networking capabilities” in its product mix, and was benefting from “technical leadership” as a result of its recent R&D investments.
One T1 customer is now using Ciena Carrier Ethernet equipment for business Ethernet services and for mobile backhaul, he said, driving volume shipments to the carrier in question.
Although overall Ciena produced good 3Q results, Smith said that Europe had been the market “most notably” affected by poor macro-economic conditions over the past quarter, as operators extended investment in next generation networks.
“We are seeing some slowness in some markets,” Smith said, “most notably in Europe, where we are seeing longer cycles for sales and revenue recognition — but customers will need to move forward in their network modernisation plans even if they do so more slowly.”