Error on User Creation for Lync

I get the following error when creating a new user:

Error while enabling Lync services for the user - System.Management.Automation.RemoteException: Cannot bind parameter 'SipAddress' to the target. Exception setting "SipAddress": "Cannot parse SIP address for user information."

If I go back after the account is created and enable Lync using the same naming format it works fine. It is acting like the %mail% field does not have valid data at the time of creation, but works on an existing account.

Thoughts?