CIENA to Record Charge in Fiscal Fourth Quarter Against Receivable; No Change To CIENA'S Future Revenue Expectations.Business Editors/Hi-Tech Writers LINTHICUM, Md.--(BUSINESS WIRE)--Sept. 5, 2000 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: CIEN CIEN Ciena Corporation (stock symbol) ), today announced that it has been informed that an administration order has been issued by a London court against iaxis Limited, one of CIENA's European customers. An administration order is similar to a filing for reorganization in the U.S. As a result of this order, up to $28.2 million in net accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying currently owed CIENA from this customer may be uncollectible, and CIENA therefore expects to record a one-time charge related to a provision for doubtful accounts in its fourth fiscal quarter ending October 31, 2000. Iaxis Limited is the 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. customer that CIENA disclosed as having financial difficulties in CIENA's Form 10-Q Form 10-Q See 10-Q. , filed with the Securities and Exchange Commission on August 17, 2000. As was disclosed in the Form 10-Q, net outstanding receivables from iaxis represented approximately 13 percent of CIENA's net receivables Net Receivables A company's accounts receivable (money owed to the company) minus bad debts. Notes: If a company estimates that 2% of its sales are never going to be paid, then net receivables equals 98% (100% - 2%) of the accounts receivable. as of July 31, 2000, or approximately $28.2 million. CIENA previously had been informed that iaxis was working toward a sale of the company and received information about the administration order yesterday. CIENA had no projections of future revenues from iaxis, either in the current quarter or in future quarters, and at this time believes that its accounts receivables from its other customers are fully collectible collectible An asset of limited supply that is sought for a variety of reasons including, it is hoped, an increase in value. Stamps, antiques, coins, and works of art are among the many things usually classified as collectibles. in accordance with their recorded amounts. In addition, this event does not impact CIENA's previously announced expectations for future revenue growth. The impact of the charge on CIENA's net earnings 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 in its fourth fiscal quarter is expected to be up to approximately $0.13, or $0.06 on a post-split basis. CIENA has previously announced a two for one stock split payable on September 18, 2000. "This situation is the result of issues particular to a single customer and is not indicative of our outlook for the optical networking industry," 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's president and chief executive officer. "While disappointing, this event does not change our outlook for continued robust sales growth across our intelligent optical networking product lines." 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 http://www.ciena.com. NOTE TO 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 the Company that involve risks and uncertainties. Forward-looking statements in this release, including, but not limited to, the Company's outlook for the optical networking industry and for continued robust sales growth across our intelligent optical networking product lines, the Company's expectation that the event will not impact CIENA's future revenue growth, our belief that our accounts receivables from other customers are fully collectible in accordance with their recorded amounts and the expected accounting treatment and accounting impact of the event 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 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-Q filed with the Securities and Exchange Commission on August 17, 2000. Forward looking statements 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. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion