Networking hardware and telecom equipment company Cisco is planning to acquire  Acacia Communications in a $2.6 billion deal . As announced by the companies on Tuesday, Cisco will pay $70 per share in cash for Acacia - a networking company and already a supplier for Cisco. The acquisition is expected to bolster Cisco’s optical systems business.According to the announcement, the deal is expected to close in the second half of Cisco’s fiscal year 2020. Acacia shares surged more than +38% during premarket trading Tuesday, while Cisco was down -1% .

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Lumentum Holdings shares extended their decline Monday, on news of the telecom equipment maker lowering its outlook on current quarter revenue. The company announced that it halted shipments to telecom/electronics giant Huawei, and currently expects revenues for the three months ending in June to range between $375 million and $390 million – below its prior predicted range of $405 million and $425 million. Lumentum has also slashed its earnings per share guidance to a range of 65 cents to 77 cents a share, compared to the previous estimated range of 85 cents to $1.00. Indicating that it aims to comply with the U.S. export regulations vis-a-vis license requirements, the company said, "Lumentum has discontinued all shipments to Huawei effective as of the date the licensing requirements went into effect and cannot predict when it will be able to resume shipments".

Cisco Systems (NASDAQ: CSCO) is up 2.5% postmarket after its fiscal Q3 results beat expectations with broad product revenue growth and double-digit gains in operating income.

Comtech Telecommunications Corp. CMTL 5.77% said Monday that it was awarded a $100-million-plus contract during the fiscal third quarter for a next-generation 911 communications system in a northeastern state. Read More...

Networking company Juniper Networks (NYSE: JNPR) has been falling since last November, but it is the three highs from December, January, and April 3 that got my attention.The indicators performed similar crossovers in November, January, and February. The Tickeron AI Prediction tool generated a bearish signal on Juniper on April 3.

Ciena Corporation (NYSE: CIEN) provides hardware, software, and services for networking systems worldwide.The company’s return on equity is average at 10.4% and so is the profit margin at 9.2%.

Adjusted earnings of 33 cents a share were also higher than analysts’ expected 30 cents a share (based on data published in The Street). The company's quarterly sales increased +21% year-over-year to $778.5 million, surpassing analysts’ estimate of $761 million (based on FactSet data).A major contributor to the revenue growth was Ciena's converged packet optical unit, whose sales surged  +71% surge to reach $548.9 million. Ciena bought back around 600,000 common shares worth $21.2 million during the quarter.    

Segment-wise, revenue for the quarter was Space Systems $243 million, Imagery $213 million and Services $68 million. Total EBITDA for the quarter stood at $84 million compared to $116 million in the previous quarter.The final EBITDA figures segment wise stand as: Space Systems -$29 million, Imagery $122 million and Services $6 million. As part of its restructuring plans, the company will sell its Palo Alto facility as well as amend its credit agreement as steps to strengthen the balance sheet. It has also decided to continue operating the GEO Comsat business to right size the organization to better align its costs with revenue.

Juniper Networks (NYSE: JNPR) announced earnings results on January 29 and the results disappointed investors.This could be another bad sign for the stock. The Tickeron AI Prediction tool generated a bearish signal on Juniper on February 25.

Shares of the American multinational technology conglomerate Cisco Systems Inc. soared ~1.5% on Tuesday, after people familiar with the event confirmed that Cisco initiated talks to purchase optical chip technology company Luxtera Inc. Although Cisco - the biggest maker of networking equipment - and representatives for Luxtera are yet to confirm this ongoing negotiation, sources have confirmed that Cisco has beaten several rival bids coming from companies like Intel Corp. (INTC) and Broadcom Inc. (AVGO) to reach this advanced stage of negotiation. According to sources, the transaction has not yet been completed, nor has the final price for the closely held company been determined.The additional technology may also help Cisco in rekindling its growth cycle again, which has been struggling amidst an industrywide migration to cheaper machinery that uses open-source software.  

Ciena Corp. (NYSE: CIEN) is one of the few that has been able maintain its momentum and keep within its trend. We see on the daily chart that the stock has formed a trend channel over the last six months and the stock just bounced off of the lower rail of that channel.Most tech stocks have fallen below their 13-week and 52-week moving averages. Ciena operates in the communication equipment group within the tech sector.