Ciena Corp

Ciena  (CIEN - Get Report) exceeded Wall Street's first-quarter expectations Tuesday, but shares of the networking systems, services and software company slipped.

The Hanover, Maryland-based company reported earnings of $33.6 million, or 21 cents a share, a swing from a loss of $473.4 million, or $3.29 a share, a year ago when the company recorded a major income tax-related expense. Adjusted earnings totaled $52.8 million, or 33 cents a share, up from $21.9 million, or 15 cents a share, a year ago. Revenue increased 21% to $778.5 million. Analysts expected Ciena to report earnings of 30 cents on sales of $760.6 million.

Ciena saw strong sales in its converged packet optical segment, with revenue increasing 71% to $548.9 million. The segment focuses on hardware sales for networking.

"We began fiscal 2019 with a very strong first-quarter performance, including outstanding top and bottom line growth as well as continued market share gains,"  Gary B. Smith, president and CEO said in a statement. "We believe that the combination of our leading innovation and positive industry dynamics will enable us to further extend our leadership position."

The company repurchased about 600,000 common shares for an aggregate price of $21.2 million during the quarter. Cash and investments totaled $788 million and cash flow used in operations totaled $14.1 million.

Shares of Ciena Corp. were down about 4.21% to $41 Tuesday.