CIENA Announces Preliminary First Quarter Fiscal 2002 Results, Operational Adjustments and Associated Restructuring Charges.Business Editors/Hi-Tech Writers LINTHICUM, Md.--(BUSINESS WIRE)--Feb. 5, 2002 CIENA(R) Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CIEN CIEN Ciena Corporation (stock symbol) ) today announced it anticipates that it will report revenue for its fiscal first quarter ended January 31, 2002 of approximately $160 million. CIENA expects that adjusted net loss per diluted share for the first fiscal quarter, after excluding estimated restructuring costs, deferred stock compensation charges, payroll taxes Payroll Tax Tax an employer withholds and/or pays on behalf of their employees based on the wage or salary of the employee. In most countries, including the U.S., both state and federal authorities collect some form of payroll tax. on stock option exercises and amortization of intangibles, will be reported in a range of $0.19 to $0.22 per diluted share. Actual, or GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). , net loss for the period is expected to be reported to be spoken of; to be mentioned, whether favorably or unfavorably. See also: Report in a range of $0.21 to $0.24 per diluted share.(1) "Our first quarter revenues were lower than expected because during the quarter, several of our major customers made substantial changes in their deployment plans resulting in significant reductions in the amounts of equipment they had previously indicated they anticipated purchasing from us," said Gary Smith Gary Smith may refer to:
CIENA also announced it is taking further steps to prioritize pri·or·i·tize v. pri·or·i·tized, pri·or·i·tiz·ing, pri·or·i·tiz·es Usage Problem v.tr. To arrange or deal with in order of importance. v.intr. investment in its business and to align those investments with current market conditions. As a result, CIENA is making an immediate workforce reduction of approximately 400 employees, or approximately 12 percent of its total workforce. As part of this action, CIENA also will close its Marlborough, MA, research and development facility. Affected employees will be paid through April 5, 2002 and will be eligible for additional severance packages A severance package is pay and benefits an employee receives when they leave employment at a company. In addition to the employee's remaining regular pay, it may include some of the following:
n. The process of facilitating a terminated employee's search for a new job by provision of professional services, such as counseling, paid for by the former employer. assistance and training. CIENA expects to record a restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of between $9 to $11 million in its second fiscal quarter associated with the workforce reduction, lease terminations, non-cancelable lease costs and the write-down of certain property, equipment and leasehold improvements Leasehold Improvement Improvements on a leased asset that increase the value of the asset. Notes: A leasehold improvement is classified as an asset that must be depreciated over time. . Commenting on CIENA's business outlook Smith said, "We're faced with a challenging and uncertain market, but based on our ongoing discussions with our customers, we believe our fiscal second quarter revenue could be flat to down from our fiscal first quarter revenue." "While we will continue to manage our business toward profitability and to look to remove costs where possible, we remain committed to our strategy of sustained investment in key areas of our business such as research and development and sales - those areas that are necessary to ensure we maintain our technology and market lead," said Smith. "We believe the telecom industry is a cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. one and that our customers will resume investing in their networks. When they do, our goal is to be certain that CIENA's next-generation optical networking Communications between computers, telephones and other electronic devices using light. An optical network is far more reliable and has far greater potential transmission capacity than networking in the electrical domain. See optical fiber. solutions offer the best performance and the best value." CIENA expects to report final first quarter results on Thursday, February 21, 2002. Live Web Broadcast of Preliminary First Quarter Results Discussion In conjunction with this announcement, CIENA will host a discussion of its preliminary fiscal first quarter results with investors and financial analysts on Tuesday, February 5, 2002 at 8:45 AM (Eastern). The live broadcast of the discussion will be available via CIENA's homepage at www.CIENA.com. An archived version of the discussion will be available shortly following the conclusion of the live broadcast on the Investor Relations Investor relations The process by which the corporation communicates with its investors. page of CIENA's website at: www.CIENA.com/investors. ABOUT CIENA CIENA Corporation's market-leading intelligent optical networking systems form the core for the new era of networks and services worldwide. CIENA's LightWorks(TM) architecture enables next-generation optical services and changes the fundamental economics of service-provider networks by simplifying the network and reducing the cost to operate it. Additional information about CIENA can be found at www.CIENA.com. NOTE TO CIENA INVESTORS This press release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. based on current expectations, forecasts and assumptions of CIENA (the Company) that involve risks and uncertainties. Forward-looking statements in this release, include the following: CIENA anticipates that it will report revenue for its fiscal first quarter ended January 31, 2002 of approximately $160 million, CIENA expects that adjusted net loss per diluted share for the first fiscal quarter, after excluding estimated restructuring costs, deferred stock compensation charges, payroll taxes on stock option exercises and amortization of intangibles, will be reported in a range of $0.19 to $0.22 per diluted share. Actual, or GAAP, net loss for the period is expected to be reported in a range of $0.21 to $0.24 per diluted share, CIENA expects to record a restructuring charge of between $9 to $11 million in its second fiscal quarter associated with the workforce reduction, lease terminations, non-cancelable lease costs and the write-down of certain property, equipment and leasehold improvements, CIENA is faced with a challenging and uncertain market, but based on our ongoing discussions with our customers, we believe our fiscal second quarter revenue could be flat to down from our fiscal first quarter revenue, while we will continue to manage our business toward profitability and to look to remove costs where possible, we remain committed to our strategy of sustained investment in key areas of our business such as research and development and sales - those areas that are necessary to ensure we maintain our technology and market lead, we believe the telecom industry is a cyclical one and that our customers will resume investing in their networks, when they do, our goal is to be certain that CIENA's next-generation optical networking solutions offer the best performance and the best value, and CIENA expects to report final first quarter results on Thursday, February 21, 2002. The Company's actual results could differ materially from those stated or implied in such forward-looking statements, due to risks and uncertainties associated with the Company's business, which include the risk factors disclosed in the Company's Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission on December 13, 2001. Forward-looking statements also include statements regarding the Company's expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words. The Company assumes no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise. (1) CIENA provides adjusted net income (loss) and as adjusted net income (loss) per share data to assist investors in their analysis of our operating results. These adjustments are not in accordance with, or an alternative for, generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP) and may be different from the presentation of financial information provided by other companies. |
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