+ Discretionary incentive bonus
Ciena designs and sells optical and routing hardware, automation software, and professional services to build adaptive networks for telecom providers, cable operators, governments, and enterprises. Its systems combine physical networking gear with software that automates traffic routing and resource management so networks can adjust in real time to changing demand. It differentiates itself by offering an end-to-end solution—hardware, software, and services—plus a large global customer base and close collaboration with customers and partners. Its goal is to enable richer, more connected experiences by helping customers deploy flexible, scalable networks that meet evolving digital needs.
Company Size
10,001+
Company Stage
IPO
Headquarters
Linthicum, Maryland
Founded
1992
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ACE cable system upgrades africa-europe route to more than 30 tbps with Ciena. September 23, 2026 The upgrade is designed to meet rising connectivity demand from more than 500 million people across the regions served by the cable. The ACE cable system consortium has selected Ciena to upgrade a key submarine route connecting Western Europe, West Africa and South Africa, as demand for high-capacity connectivity across Africa continues to grow. The approximately 17,000-kilometre ACE system spans 18 landing stations and will use Ciena's 6500 platform powered by WaveLogic 6 Extreme (WL6e) to deliver more than 30 Tb/s of capacity. The modernization is expected to expand bandwidth over existing infrastructure while limiting disruption to live traffic. The upgrade is designed to meet rising connectivity demand from more than 500 million people across the regions served by the cable. Ciena Services is deploying WL6e over ACE's existing submarine line terminal equipment, allowing the system to scale without requiring complex traffic migrations. "International routes drive economic growth, digital inclusion, and cloud adoption across Africa, and this upgrade gives regional service providers a high-capacity path that reaches more than 500 million people. Ciena's coherent optical technology and proven Services team give us confidence that we can keep customers connected while meeting expanding bandwidth needs." - Philippe Recco, President, ACE Management Committee Ciena Services will also manage ongoing maintenance and transformation of the system as ACE prepares for growing demand for resilient connectivity within Africa and between Africa and Europe. "Ciena supports this vital link between Africa and the rest of the world with our subsea deployment expertise and coherent optical innovations. Together, we are expanding existing cable infrastructure and developing a long-term technology roadmap for future growth with minimal operational impact." - Thomas Soerenson, Vice President, Global Subsea, Ciena The consortium will also use Ciena's Navigator Network Control Suite for greater visibility and management of its services. Its Liquid Spectrum applications, including Channel Margin Gauge, provide real-time visibility into the signal-to-noise ratio (SNR) margin of wavelengths, helping ACE identify opportunities to increase capacity. The modernization also introduces greater automation and visibility, enabling operators to plan future network expansion and manage services more efficiently while maintaining the existing infrastructure. The TechAfrica News Podcast
Monday roundup: Ciena, ACE, FLAG, ex2. Three upgrade projects, two below the waves and one back on land: Ciena has picked up two subsea upgrade deals. The Africa Coast to Europe (ACE) consortium is deploying Ciena's WL6e tech over top of its existing submarine line terminal equipment. The upgrade will boost capacity above 30Tbps while enhancing visualization and management. ACE spans some 17,000km across 18 landing stations along the west coast of Africa and Europe. Meanwhile, FLAG has selected Ciena's Waveserver platform and WL6e coherent optics for its dedicated fiber pair on the ECHO subsea cable. ECHO's 16,000km of cable connect Singapore and the US via Guam, and complements the rest of FLAG's global footprint. FLAG will be able to offer 400GbE and 800GbE services on the upgraded infrastructure, meeting demand from AI and cloud services. And back on land, eX[2] Technology has polished off a procject up in Michigan. They have completed a 195-mile FTTP network in the city of Holland, a half hour's drive southwest of Grand Rapids near the shores of Lake Michigan. The infrastructure connects up with existing utility-built fiber infrastructure of Holland BPW, boosting access to a broader swath of the city. If you haven't already, please take our Reader Survey! Just 3 questions to help us better understand who is reading Telecom Ramblings so we can serve you better!
Ciena has set a revenue target of approximately $14 billion by fiscal 2029, driven by sustained demand for optical systems that continues to outpace industry supply. The company also aims for gross margins of about 50% and operating margins of 32% to 35%. Chief financial officer Marc Graff said orders doubled from 2024 to 2025 and are expected to increase by at least 50% in 2026. Ciena anticipates its backlog will reach $10 billion by the end of fiscal 2026. The company expects industry supply and demand to remain imbalanced until 2028. For fiscal 2027, Ciena projects orders to grow by at least 50% and has secured sufficient supply to support at least 30% revenue growth.
Ciena trades near $334, down from its 52-week high, but still up over 150% year-on-year. The AI networking supplier expects price increases of high single digits to low twenties across product lines, with some increases applying to existing backlog orders. Management projects fiscal 2027 adjusted operating margins of 25% to 27%, calling it record profitability. The company forecasts fiscal 2027 revenue of at least $8.3 billion, representing minimum 30% year-on-year growth. Ciena expects to end fiscal 2026 with over $10 billion in backlog. The price increases come during a component shortage that management doesn't expect to resolve until 2028. About half of Ciena's business now comes from hyperscalers directly. The key risk is whether pricing power holds once supply constraints ease, making adjusted operating margin the critical metric to watch as repriced backlog converts to revenue.
Ciena has launched Ciena Ventures, a corporate venture capital fund with an initial commitment of $200 million to invest in early-stage companies developing AI-era networking and connectivity technologies. The programme will complement Ciena's existing research and development efforts and strategic acquisitions. Led by Loai Louis, Vice President of Corporate Development, the fund will focus on technologies that advance networking infrastructure, accelerate next-generation data centre architectures, enable innovations in optical networking, and expand opportunities in adjacent areas such as computing and materials. David Rothenstein, Ciena's Executive Vice President and Chief Strategy Officer, said the initiative provides another vehicle for executing the company's long-term strategy. The fund aims to accelerate development of transformative solutions, strengthen the innovation ecosystem, and help Ciena expand its portfolio and pursue opportunities in adjacent markets. This represents Ciena's first company-wide corporate venture capital initiative.