Ciena Corporation (NYSE:CIEN) stock fell 1.08% (As on March 7, 11:26:27 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 23. Non-telco represented 40% of total revenue in fiscal Q1 2023. Routing and Switching revenue increased 39% YoY in fiscal Q1 2023, reflecting strong contribution from portfolio enhancements, including solutions that address the network edge.  APAC revenue increased 41% YoY and 23% QoQ driven by strength in India. Further, GAAP R&D investment was 17.2% of total revenue in fiscal Q1 2023. Customer traction continues with 400G+ technologies, with 8 new wins on WL5n and 13 new wins on WaveLogic 5 Extreme. It was record quarter for WL5e shipments with more than 60,000 modems shipped to date. the company brought additional products to market to serve Next-Gen Broadband Access, Enterprise, and Mobility use cases via the weatherized 3985 and the temperature hardened 3984, both with 25Gig support. Two customers represented 10%-plus of revenue combining for a total of 25.7% of revenue. Cash and investments totaled $1.2 billion. Cash flow used in operations totaled $265.6 million. Average days’ sales outstanding (DSOs) were 103. Accounts receivable, net balance was $1.05 billion and unbilled contract asset, net balance was $148.8 million.

CIEN in the first quarter of FY 23 has reported the adjusted earnings per share of 64 cents, beating the analysts’ estimates for the adjusted earnings per share of 36 cents. The company had reported the adjusted revenue growth of 25.1 percent to $1.06 billion in the first quarter of FY 23, beating the analysts’ estimates for revenue of $959.4 million. Ciena’s adjusted (non-GAAP) net income for the fiscal first quarter 2023 was $95.6 million, which compares to an adjusted (non-GAAP) net income of $72.6 million, for the fiscal first quarter 2022. Adjusted gross margin contracted 250 bps to 43.7% as costs jumped by 30.5% Y/Y. Adjusted operating margin grew by 80 bps to 12.6%.

Meanwhile, the company made strategic investments to expand our addressable market. The company has completed the acquisition of Tibit Communications, Inc., a provider of passive optical network solutions. The company has completed the acquisition of Benu Networks, Inc., a provider of broadband network gateway software. The company has raised $500M in Incremental Term Loan for general corporate purposes that improves our cash liquidity position