Ciena Targets Automation With Packet Design Buy

To enhance its Blue Planet network management system -- which came on board as part of the 2015 acquisition of Cyan -- Ciena Corp. (NYSE: CIEN) is set to acquire IP network optimization and analytics specialist Packet Design for an undisclosed sum. This move, according to Ciena, will extend the automated network optimization capabilities of the Blue Planet system beyond Layers 0-2 and into Layer 3. (See Ciena Absorbs Cyan for New IP Onslaught and Is There Life on Ciena's Blue Planet?)

Packet Design, which prides itself on enabling "self-driving network" operations based on real-time telemetry and analytics, has raised more than $50 million since its inception in 2000, according to Crunchbase, with its most recent capital top-up being a $14 million round in 2013, when the company was effectively acquired by Austin, Texas-based private equity firm Lone Rock Technology Group.

The news of the acquisition formed part of Ciena's fiscal second-quarter earnings announcement for the period ended April 30. Revenues, at $730 million, were up by 3% year-on-year and slightly higher than Wall Street's expectations. However, its adjusted operating margin came in at 7.7%, compared with 12.5% a year ago, gross margin was down to 40.7% from 45.7%, and net income dipped to $13.9 million from $38 million in the quarter a year ago.

— Ray Le Maistre, Editor-in-Chief, Light Reading

This is an edited version of a story that was originally published on Telco Transformation's sister site, Light Reading. To see the full story, click here.