The performance of continue phase shift keying (CPFSK) optical communication system is investigated. The receiver recovers the phase of the optical signal by using a phase diversity technique. The system with delay-and-multiply frequency discriminator is examined. Exact mean and variance of output statistic are derived without assumption of small delay time in the delay-and-multiply discriminator. The results of Gaussian approximation are applied to finding the system bit error rate floors and the optimum delay times. It is found that for different linewidth the delay time should be set differently. The influences of laser linewidth, noise correlation, and filter bandwidth are taken into account. Results of computer simulation illustrate the non-Gaussian character of the probability density function of the receiver output current.