A digital receiver compares the amplified and filtered signal from an equalizer to a threshold level to determine if a pulse is present at a given time slot, with the output voltage above the threshold for a 1 and below for a 0. However, in practice there are deviations from these ideal levels due to noise, interference from adjacent pulses, and incomplete suppression of light during zero pulses. The performance of the receiver is analyzed assuming Gaussian, flat spectrum, and uncorrelated noise sources.