Ciena Corp (NYSE:CIEN) stock rose 1.23% (As on March 8, 12:32:58 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 24. Ciena’s adjusted (non-GAAP) net income for the fiscal first quarter 2024 was $96.8 million, which compares to an adjusted (non-GAAP) net income of $95.6 million, for the fiscal first quarter 2023. Non-Telco revenue accounted for over 54% of total revenues, with direct cloud provider revenue up 38% YoY at $346 million. Ciena is expanding relationships with cloud providers and securing new deals. The company is well-positioned to benefit from bandwidth growth and cloud adoption. Executives cited positive growth in India and the Asia Pacific region. The company is working on reducing inventory levels and improving product lead times. There is a focus on developing products for anticipated demand shifts in the data center market. The company remained very confident in the strength and durability of bandwidth demand as a long-term driver of our business, it is taking longer than expected for service providers to work through high levels of inventory

Moreover, two customers represented 10%-plus of revenue combining for a total of 26.5% of revenue. Cash and investments totaled $1.48 billion. Cash flow from operations totaled $266.1 million. Average days’ sales outstanding (DSOs) were 88. Accounts receivable, net balance was $865.2 million. Unbilled contract asset, net balance was $151.6 million. Inventories totaled $984.9 million, including raw materials $571.7 million, Work in process of $60.6 million, Finished goods of $369.8 million, Deferred cost of sales of $36.8 million and reserve for excess and obsolescence of $(54.0) million.

CIEN in the first quarter of FY 24 has reported the adjusted earnings per share of 66 cents, beating the analysts’ estimates for the adjusted earnings per share of 47 cents, according to Zacks Investment Research. The company had reported the adjusted revenue of $1.04 billion in the first quarter of FY 24, beating the analysts’ estimates for revenue of $1.02 billion.

Additionally, the company repurchased approximately 691 thousand shares of common stock for an aggregate price of $32.0 million during the quarter.

The company is revising its fiscal 2024 revenue outlook to $4.0 billion to $4.3 billion, down from previous growth expectations. Ciena projects a 6% to 8% compound annual growth rate (CAGR) over the next three years.