CIENA Reports First Quarter Revenue of $152.2 Million, Net Income of $0.06 per Diluted Share.Business Editors LINTHICUM, Md.--(BUSINESS WIRE)--Feb. 17, 2000 MultiWave CoreDirector(TM) Optical Core Switch Trials on Schedule CIENA Corporation Ciena Corporation NASDAQ: CIEN develops and markets communications network platforms and software, and offers professional services. The Company's broadband access, data and optical networking platforms, software tools, and global network services support worldwide telecom (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 reported revenue of $152.2 million for its first fiscal quarter ended January January: see month. 31, 2000, an increase of approximately 52% as compared to the same period a year ago when the Company reported revenue of $100.4 million. Net income for the first quarter was $9.1 million, or $0.06 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. This compares with net income for the previous quarter of $4.5 million, or $0.03, per diluted share. For the same period in fiscal 1999, the Company reported a net loss of $1.9 million, or a loss of $0.01 per diluted share.(1) CIENA continues to broaden its customer base, recognizing revenue during the first quarter from a total of 25 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. customers, an increase of 64% over 13 revenue-generating customers in the same period a year ago. The quarter included revenue from four customers from which the Company had not previously recorded revenue. &uot;With the emergence of the real optical-level service enablers offered for the first time by CIENA in our recently announced LightWorks Toolkit An integrated set of software routines or utilities (tools) that are used to develop and maintain applications and databases. There are toolkits for developing almost anything. See tool, developer's toolkit, library, class library and CASE. (TM), optical networking is truly coming of age,&uot; said Patrick Nettles net·tle n. 1. Any of numerous plants of the genus Urtica, having toothed leaves, unisexual apetalous flowers, and stinging hairs that cause skin irritation on contact. 2. Any of various hairy, stinging, or prickly plants. , CIENA president and chief executive officer. &uot;Before the end of this year, the optical layer will be used to offer market differentiating services. That's when service providers really begin to reap benefits from the shift from legacy network architectures to next-generation, intelligent optical networks.&uot; During the quarter, CIENA shipped MultiWave CoreDirector(TM), the industry's first intelligent optical core switch, to a total of five trial customers, including announced trial customers Williams and iaxis. A sixth trial was rescheduled to accommodate changes in the customer's testing schedule. CIENA also disclosed it has received a substantial purchase order for long-distance long-dis·tance adj. 1. Covering a long distance: a long-distance runner; operating under long-distance supervision. 2. optical transport equipment from a new undisclosed customer that, due to immediate demand from the customer, will involve substantial equipment shipments in the Company's second fiscal quarter. The Company expects these shipments will contribute materially to its reported revenue for the period, although its ability to recognize revenue will be dependent on successful achievement of a number of execution challenges. &uot;Demand in all areas of optical networking - from core transport to metropolitan applications to core switching appears strong and growing at both 2.5 and 10 gigabit per second transmission speeds, &uot; concluded Nettles. &uot;With a network-spanning product line and our world-wide support capabilities, CIENA is uniquely positioned to benefit from current robust market dynamics in the optical networking space.&uot; NOTE TO INVESTORS 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. in this release, including the Company's expectation that shipments to a new customer will contribute materially to the Company's fiscal second quarter; that demand in all areas of optical networking appears to be strong and growing and; that CIENA is uniquely positioned to benefit from the current market dynamics, are based on information available to the Company as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . The Company's actual results could differ materially from those stated or implied by such forward-looking statements, due to risks and uncertainties associated with the Company's business. The forward-looking statements should be considered in the context of these and other risk factors disclosed in the Company's report on Form 10-Q Form 10-Q See 10-Q. , as filed with the Securities and Exchange Commission on February February: see month. 17, 2000. ABOUT CIENA CIENA is a leader in the rapidly emerging optical networking equipment market. The Company offers a comprehensive portfolio of products for tele- tele- word element [Gr.], operating at a distance; far away. tele- or tel- pref. Distance; distant: teletherapy. tele- word element. [Gr. and data-communications service providers worldwide. Come see CIENA at the Optical Fiber Communications Conference (OFC OFC Office OFC Officer OFC Of Course OFC Oxygen Free Copper OFC Oceania Football Confederation (soccer) OFC Optical Fiber Cable OFC Optical Fiber Communications OFC Optical Fiber Conference ), booth No. 2813, in Baltimore Baltimore, city (1990 pop. 736,014), N central Md., surrounded by but politically independent of Baltimore co., on the Patapsco River estuary, an arm of Chesapeake Bay; inc. 1745. , March 7 - 9, 2000. Additional information about CIENA can be found at http://www.ciena.com. (1) Past financial results have been restated to reflect the consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: operating results of Lightera Networks, Inc. and Omnia Omnia is the Latin plural of "all" and may refer to:
transactions on March 31, 1999 and July July: see month. 1, 1999, respectively. Net income and earnings per share amounts in the attached consolidated statement of operations See Income statement. are inclusive of inclusive of prep. Taking into consideration or account; including. the effects of merger-related and other one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges. All earnings per share amounts represent diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of as defined within Statement of Financial Accounting Standards No. 128 (SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 128). (Consolidated Statements of Operations and Consolidated Balance Sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. follow)
CIENA CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Quarter ended January 31,
1999 2000
---------------------------------
Revenue $ 100,417 $ 152,213
Cost of goods sold 65,778 87,003
---------- ---------
Gross profit 34,639 65,210
---------- ---------
Operating expenses:
Research and development 22,218 29,742
Selling and marketing 13,608 18,122
General and administrative 5,036 6,871
---------- ---------
Total operating expenses 40,862 54,735
---------- ---------
Income (loss) from operations (6,223) 10,475
Interest and other income
(expense), net 3,396 3,046
Interest expense (95) (96)
---------- ---------
Income (loss) before income taxes (2,922) 13,425
Provision (benefit) for income taxes (1,041) 4,363
---------- ---------
Net income (loss) $ (1,881) $ 9,062
========== =========
Basic net income (loss)
per common share $ (0.01) $ 0.07
========== =========
Diluted net income (loss)
per common share and
dilutive potential
Common share $ (0.01) $ 0.06
========== =========
Weighted average basic
common shares outstanding 131,202 138,091
========== =========
Weighted average basic common
and dilutive potential
Common shares outstanding 131,202 147,903
========== =========
CIENA CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
October 31, January 31,
1999 2000
--------------------------------
ASSETS
Current assets:
Cash and cash equivalents $143,440 $148,329
Marketable debt securities 118,956 110,208
Accounts receivable, net 144,348 166,244
Inventories, net 79,608 82,609
Deferred income taxes 25,385 26,018
Prepaid expenses and other 21,262 25,070
---------- ---------
Total current assets 532,999 558,478
Equipment, furniture and
fixtures, net 125,252 129,259
Goodwill and other intangible
assets, net 12,635 11,726
Other assets 6,949 7,695
---------- ---------
Total assets $677,835 $707,158
========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 34,399 $38,431
Accrued liabilities 58,486 61,028
Income taxes payable 8,697 -
Deferred revenue 2,954 2,102
Other current obligations 992 835
---------- ---------
Total current liabilities 105,528 102,396
Deferred income taxes 36,953 36,953
Other long-term obligations 4,881 5,084
---------- ---------
Total liabilities 147,362 144,433
---------- ---------
Commitments and contingencies:
Stockholders' equity:
Preferred stock - par value
$.01; 20,000,000 shares
authorized; zero shares
issued and outstanding - -
Common stock - par value $.01;
360,000,000 shares authorized;
138,187,356 and 139,809,956
shares issued and outstanding 1,382 1,398
Additional paid-in capital 360,082 383,149
Notes receivable from
stockholders (210) (141)
Accumulated other
comprehensive income (40) (2)
Retained earnings 169,259 178,321
---------- ---------
Total stockholders' equity 530,473 562,725
---------- ---------
Total liabilities and
stockholders' equity $677,835 $707,158
========== =========
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