Ciena Aids Southern Cross to Achieve 1 Tb/s Transpacific Transmission

Core Insights - Ciena Corporation's WaveLogic 6 Extreme technology has enabled Southern Cross Cable Limited to achieve the world's first transpacific 1 Tb/s single-carrier wavelength over a distance of 13,500 km, showcasing the technology's advanced capabilities and adaptability [1][2] Group 1: Technology and Deployment - The WaveLogic 6 Extreme technology will significantly enhance the reliability and resilience of connectivity across Oceania, addressing the increasing bandwidth demands driven by AI, video, content, and cloud applications [2] - Southern Cross plans to begin volume deployment of WaveLogic 6 Extreme in Q1 2025, including the Southern Cross NEXT cable, which will provide the lowest latency between Sydney/Auckland and Los Angeles [3] - Ciena's GeoMesh Extreme solution, combined with the 6500 Packet-Optical Platform powered by WaveLogic 6, is expected to increase network capacity by over 100 times, utilizing infrastructure originally designed for 2.5 Gb/s wavelengths [3] Group 2: Market Demand and Financial Performance - Ciena's performance is bolstered by rising bandwidth demand due to rapid cloud adoption and the proliferation of AI technology use cases, with WaveLogic 6 Extreme being the industry's first 1.6 Tb/s coherent optic solution [5][6] - Revenues from WaveLogic 6E in Q4 fiscal 2024 included shipments to multiple customers, indicating strong adoption and potential for top-line growth [6] - For Q1 fiscal 2025, Ciena expects revenues between $1.01 billion and$1.09 billion, with an adjusted gross margin in the low-40% range and adjusted operating expenses projected at nearly $350 million [8] Group 3: Long-term Projections - Ciena has revised its long-term targets for fiscal 2025 to 2027, projecting an average annual revenue growth of 8% to 11%, up from the previous target of 6% to 8%, driven by significant investments from cloud providers [9] - The company aims to enhance operating efficiency, targeting an adjusted operating margin of 15% to 16% by fiscal 2027, and expects to generate annual free cash flow equivalent to 55% to 60% of its adjusted operating income over the next three years [10]