Ciena Reports Fiscal Second Quarter 2006 Results; Delivers Continued Gross Margin Improvement and Ninth Quarter of Sequential Revenue Growth.LINTHICUM, Md. -- 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) ), the network specialist, today announced results for its fiscal second quarter 2006 ending April 30, 2006. Revenue for the second quarter totaled $131.2 million, representing a 8.9% sequential increase from fiscal first quarter revenue of $120.4 million, and an increase of 26.3% over the same period a year ago when the Company reported sales of $103.8 million. For the six months ending April 30, 2006, Ciena reported revenue of $251.7 million, representing an increase of 26.7% over revenue of $198.6 million for the same six-month year-ago period. "With persistent focus on executing our network specialist strategy, we've we've Contraction of we have. we've have been able to achieve the important milestone of profitability on an as-adjusted basis in our fiscal second quarter and are nearing breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations on a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis while at the same time delivering the industry-leading vision, functionality and service Ciena's customers have come to expect," said Gary Smith Gary Smith may refer to:
adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. product mix in the quarter." On the basis of 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), Ciena's net loss for the fiscal second quarter 2006 was $1.9 million, or a net loss of $0.00 per share. This compares with a reported GAAP net loss of $74.8 million, or a net loss of $0.13 per share, for the same period a year ago. For the six-month period ended April 30, 2006, Ciena's reported GAAP net loss was $8.2 million, or a net loss of $0.01 per share. This compares to a GAAP net loss of $131.8 million, or a net loss of $0.23 per share, for the same six-month year-ago period. Ciena's GAAP results for its fiscal second quarter 2006 include $4.0 million of share-based compensation expense related to equity based awards in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Statement of Financial Accounting Standards (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 ) No. 123R, adopted by Ciena on November November: see month. 1, 2005. Fiscal year 2005's GAAP results do not include the impact of SFAS 123R. Non-GAAP Presentation of Quarterly Results In evaluating the operating performance of its business, Ciena's management excludes certain charges and credits that are required by GAAP. These items, which are identified in the table that follows (in thousands except per share data), share one or more of the following characteristics: they are unusual, and Ciena does not expect them to recur in the ordinary course of its business; they do not involve the expenditure of cash; they are unrelated to the ongoing operation of the business in the ordinary course; or their magnitude and timing is largely outside of the Company's control.
Quarter Quarter
Ended Ended
Apr. 30, 2005 Apr. 30, 2006
------------- -------------
Stock compensation product $ - $ 375
Stock compensation services - 205
Stock compensation research and
development 842 1,421
Stock compensation sales and marketing 2,447 948
Stock compensation general and
administrative 192 1,007
Amortization of intangible assets 10,204 6,295
Restructuring costs 9,765 3,014
Long-lived asset impairments (25) (3)
Recovery of doubtful accounts, net - (247)
Loss (gain) on lease settlement - (5,628)
Loss (gain) on equity investments, net 7,300 -
Loss (gain) on extinguishment of debt - (362)
Income tax adjustment 15,723 (1,550)
------------- -------------
Total adjustments $ 46,448 $ 5,475
============= =============
GAAP net loss $ (74,807) $ (1,910)
Adjustment for items above 46,448 5,475
------------- -------------
Adjusted (non-GAAP) net (loss) income $ (28,359) $ 3,565
============= =============
Weighted average basic common shares
outstanding 573,569 584,625
Weighted average basic common and dilutive
potential common shares outstanding 573,569 612,202
Adjusted (non-GAAP) net (loss) income per
share $ (0.05) $ 0.01
Adjusting Ciena's fiscal second quarter 2006 GAAP net loss of $1.9 million for the items noted above would have the effect of moving the Company's quarterly results from a net loss of $1.9 million to net income of $3.6 million. Likewise adjusting the fiscal second quarter's per share results and using the higher weighted average basic common and dilutive potential common shares outstanding share count of 612.2 million instead of the basic share count of 584.6 million due to the transition from as-adjusted net loss to as-adjusted net income, would bring the Company's GAAP net loss per share of $0.00 to as-adjusted net income of $0.01 per share. To aid investor's understanding of Ciena's results and the effect of SFAS 123R-related share-based compensation expenses, the following table summarizes the presentations of Ciena's financial results covered in this press release for both the Company's fiscal second quarter 2005 and fiscal second quarter 2006. Periods prior to the Company's fiscal first quarter 2006 have not been restated to reflect, and do not include, the impact of SFAS 123R. Prior periods do include share-based compensation expense recognized in accordance with Accounting Principles Board The Accounting Principles Board (APB) is the former authoritative body of the American Institute of Certified Public Accountants (AICPA). It was created by the American Institute of Certified Public Accountants in 1959 and issued pronouncements on accounting principles until 1973, (APB APB See Accounting Principles Board (APB). ) Opinion No. 25, "Accounting for Stock Issued to Employees," as interpreted by Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). (FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). ) Interpretation (FIN fin, organ of locomotion characteristic of fish and consisting of thin tissue supported by cartilaginous or bony rays. In some fish, e.g., the eel, a single fin extends from the back, around the tail, and along the ventral surface. ) No. 44.
(in thousands except per share data)
Q2 2005 Q2 2006
Net Net Income Net Net Income
Income (Loss) Income (Loss)
(Loss) per Share (Loss) per Share
--------- ---------- --------- ----------
GAAP
----
1. GAAP results as reported $(74,807) $ (0.13) $ (1,910) $ (0.00)
========= ========== ========= ==========
Non-GAAP
--------
1. GAAP results less SFAS
123R-related share-
based compensation
expense N/A N/A $ 2,046 $ 0.00
========= ==========
2. GAAP results less APB
25-related share-based
compensation expense $(71,326) $ (0.12) N/A N/A
========= ==========
3. As-adjusted results
(excludes SFAS 123R
and APB 25-related
share-based
compensation expense
and other items as
defined in previous
table) $(28,359) $ (0.05) $ 3,565 $ 0.01
========= ========== ========= ==========
Second Quarter 2006 Performance Highlights --Delivered sequential revenue growth of 8.9% and year-over-year revenue growth of 26.3%. --As a result of ongoing product- and manufacturing-related cost reductions and favorable product mix in the quarter, delivered overall gross margin of 48.0%, an improvement of more than 600 basis points from fiscal first quarter gross margin of 41.9%. --On April 10, 2006, completed a public offering of 0.25% Convertible Senior Notes due May 1, 2013, in aggregate principal amount of $300 million. --Ended the fiscal second quarter 2006 with cash and short- and long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. investments of $1.2 billion. Second Quarter 2006 Customer and Product Highlights --Announced that CoreStream(TM) Agility Optical Transmission System had been selected for deployment in Telefonos de Mexico S Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. .A. de C.V.'s (TELMEX TELMEX Telefonos de Mexico ) nationwide long-distance long-dis·tance adj. 1. Covering a long distance: a long-distance runner; operating under long-distance supervision. 2. network, adding to Ciena's existing presence in the TELMEX long-distance network, where for several years, Ciena's CoreDirector(R) multiservice switch (1) A network switch that not only handles data, but adequately supports the real time transmission of voice and video. (2) A network device that supports multiple switching and routing protocols. has been deployed. --Participated in a public, multi-vendor MPLS (1) (MultiProtocol Lambda Switching) The earlier name for GMPLS. See GMPLS. (2) (MultiProtocol Label Switching) A standard from the IETF for including routing information in the packets of an IP network. interoperability The capability of two or more hardware devices or two or more software routines to work harmoniously together. For example, in an Ethernet network, display adapters, hubs, switches and routers from different vendors must conform to the Ethernet standard and interoperate with each other. demonstration at the MPLS World Congress with the DN 7000(TM) series multiservice edge switches, demonstrating interoperability of several MPLS standards implemented to deliver protected quality of service-enabled converged residential and business services. --With a steady increase in the adoption of Ciena's FlexSelect(TM) Architecture among healthcare organizations, including UC Davis Medical Center The UC Davis Medical Center is a major research hospital located in Sacramento, California and is the primary teaching hospital of UC Davis School of Medicine. Researchers and specialists at the 577 licensed bed medical center work in over 150 areas of specialty. , Trinity Health Trinity Health is an American healthcare provider headquartered in Minot, North Dakota. Trinity is a non-profit organization. Trinity has a 150+ physician medical group. (Novi Novi is the name of:
--Teamed with Brocade brocade (brōkād`), fabric, originally silk, generally reputed to have been developed to a high state of perfection in the 16th and 17th cent. in France, Italy, and Spain. to provide fully-tested Storage Area Network (SAN) solutions over Metro and Wide Area Networks using Ciena's CN 4200(TM) FlexSelect Advanced Services Platform and its CN 2000(TM) Storage Extension Platform. --Announced Cox Communications Cox Communications is a privately owned subsidiary of Cox Enterprises providing digital cable television and telecommunications services in the United States. It is the third-largest[2] cable television provider in the United States, serving more than 6. , a multiservice broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). company with more than 6.7 million customers, had certified See certification. Ciena's CN 4200 FlexSelect Advanced Services Platform for deployment in its metro and regional networks to support the aggregation and transport of residential voice, video and data services, as well as business services. --Named preferred supplier of 10 Gigabit Ethernet An Ethernet standard that transmits at 1 Gbps. Used mostly to connect high-end workstations and servers as well as for network backbones, Gigabit Ethernet transmits full duplex from point to point using switches and half duplex in a shared environment (CSMA/CD) using a hub. (10GbE) dense wavelength division multiplexing See WDM. (DWDM (Dense WDM) The term given to wavelength division multiplexing (WDM) when significantly more channels were being added. Since WDM is increasingly more "dense" all the time, both terms are used synonymously. See WDM. DWDM - wavelength division multiplexing ) and SDH (Synchronous Digital Hierarchy) The European counterpart to SONET. See SONET. SDH - Synchronous Digital Hierarchy transport and switching equipment by GlobalConnect, a Denmark-based telecom infrastructure provider. Business Outlook "We continue to see indications that underlying demand drivers like high-speed high-speed adj. 1. Operated or designed for operation at high speed: a high-speed food processor. 2. Taking place at high speed: a high-speed chase. 3. broadband access See broadband and wireless broadband. , wireless, and video are fueling the need for capacity growth and a transition to next-generation networks," said Smith. "We believe our role as the network specialist and our practical vision for network migration, whether from TDM (Time Division Multiplexing) A technology that transmits multiple signals simultaneously over a single transmission path. Each lower-speed signal is time sliced into one high-speed transmission. to Ethernet Ethernet Telecommunications networking protocol introduced by Xerox Corp. in 1979. It was developed as an inexpensive way of sending information quickly between office machines connected together in a single room or building, but it rapidly became a standard computer , 2G to 3G, or Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the broadband to Triple Play, positions Ciena to benefit from these market dynamics." "We expect market demand will enable us to accelerate our revenue growth in the second half of our fiscal year compared to the first half," said Smith. "On a sequential basis, we expect our fiscal third quarter revenue will increase in a range of between 7% to 10% sequentially from our fiscal second quarter revenue." Live Web Broadcast of Fiscal Second Quarter Results Ciena will host a discussion of its fiscal second quarter results with investors and financial analysts today, Thursday, June 1, 2006 at 8:30 a.m. (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: http://www.ciena.com/investors/investors.htm. 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 that involve risks and uncertainties. These statements 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" ; and Ciena's actual results could differ materially from those stated or implied, due to risks and uncertainties associated with its business, which include the risk factors disclosed in its Report on Form 10-Q Form 10-Q See 10-Q. filed with the Securities and Exchange Commission on March 3, 2006. Forward-looking statements include statements regarding Ciena'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. Forward-looking statements in this release include: we continue to see indications that underlying demand drivers like high speed broadband access, wireless, and video are fueling the need for capacity growth and a transition to next-generation networks; we believe our role as the network specialist and our practical vision for network migration, whether from TDM to Ethernet, 2G to 3G, or Internet broadband to Triple Play, positions Ciena to benefit from these market dynamics; we expect market demand will enable us to accelerate our revenue growth in the second half of our fiscal year compared to the first half; and on a sequential basis, we expect our fiscal third quarter revenue will increase in a range of between 7% to 10% sequentially from our fiscal second quarter revenue. Ciena assumes no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise.
(Consolidated Balance Sheets, Statement of Operations and Cash
Flows follow)
CIENA CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
ASSETS (unaudited)
October 31, April 30,
Current assets: 2005 2006
----------- -----------
Cash and cash equivalents $ 358,012 $ 656,223
Short-term investments 579,531 433,488
Accounts receivable, net 72,786 76,599
Inventories, net 49,333 79,076
Prepaid expenses and other 37,867 40,521
----------- -----------
Total current assets 1,097,529 1,285,907
Long-term investments 155,944 133,019
Equipment, furniture and fixtures, net 28,090 26,908
Goodwill 232,015 232,015
Other intangible assets, net 120,324 105,799
Other long-term assets 41,327 36,490
----------- -----------
Total assets $1,675,229 $1,820,138
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 43,868 $ 41,893
Accrued liabilities 76,491 67,972
Restructuring liabilities 15,492 9,218
Unfavorable lease commitments 9,011 8,910
Income taxes payable 5,785 5,652
Deferred revenue 27,817 42,040
----------- -----------
Total current liabilities 178,464 175,685
Long-term deferred revenue 15,701 16,790
Long-term restructuring liabilities 54,285 21,668
Long-term unfavorable lease commitments 41,364 36,920
Other long-term obligations 1,296 2,035
Convertible notes payable 648,752 842,262
----------- -----------
Total liabilities 939,862 1,095,360
----------- -----------
Commitments and contingencies
Stockholders' equity:
Preferred stock - par value $0.01;
20,000,000 shares authorized; zero shares
issued and outstanding - -
Common stock - par value $0.01; 980,000,000
shares authorized; 580,340,947 and
587,644,732 shares issued and outstanding 5,803 5,876
Additional paid-in capital 5,489,613 5,483,086
Deferred stock compensation (2,286) -
Changes in unrealized gains on investments,
net (4,673) (2,866)
Translation adjustment (495) (522)
Accumulated deficit (4,752,595) (4,760,796)
----------- -----------
Total stockholders' equity 735,367 724,778
----------- -----------
Total liabilities and stockholders' equity $1,675,229 $1,820,138
=========== ===========
CIENA CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Quarter Ended Six Months Ended
April 30, April 30,
--------------------- ---------------------
2005 2006 2005 2006
---------- ---------- ---------- ----------
Revenues:
Products $ 91,618 $ 117,208 $ 173,918 $ 223,149
Services 12,228 13,967 24,676 28,456
---------- ---------- ---------- ----------
Total revenue 103,846 131,175 198,594 251,605
---------- ---------- ---------- ----------
Costs:
Products 65,843 58,957 126,691 119,356
Services 10,837 9,312 20,506 18,888
---------- ---------- ---------- ----------
Total cost of goods sold 76,680 68,269 147,197 138,244
---------- ---------- ---------- ----------
Gross profit 27,166 62,906 51,397 113,361
---------- ---------- ---------- ----------
Operating expenses:
Research and development 35,608 28,856 70,270 58,318
Selling and marketing 29,648 26,657 56,488 53,229
General and
administrative 8,894 11,246 16,550 21,142
Amortization of
intangible assets 10,204 6,295 20,615 12,590
Restructuring costs 9,765 3,014 10,890 5,029
Long-lived asset
impairments (25) (3) 159 (6)
Recovery of doubtful
accounts, net - (247) - (2,851)
Gain on lease settlement - (5,628) - (11,648)
---------- ---------- ---------- ----------
Total operating
expenses 94,094 70,190 174,972 135,803
---------- ---------- ---------- ----------
Loss from operations (66,928) (7,284) (123,575) (22,442)
Interest and other income,
net 7,103 11,197 14,536 20,459
Interest expense (7,230) (5,815) (14,456) (11,868)
Gain (loss) on equity
investments, net (7,300) - (7,278) (733)
Gain on extinguishment of
debt - 362 - 7,052
---------- ---------- ---------- ----------
Loss before income taxes (74,355) (1,540) (130,773) (7,532)
Provision for income taxes 452 370 1,029 669
---------- ---------- ---------- ----------
Net loss $ (74,807) $ (1,910) $(131,802) $ (8,201)
========== ========== ========== ==========
Basic and diluted net loss
per common share and
dilutive potential common
share $ (0.13) $ (0.00) $ (0.23) $ (0.01)
========== ========== ========== ==========
Weighted average basic
common and dilutive
potential common shares
outstanding 573,569 584,625 572,674 582,759
========== ========== ========== ==========
CIENA CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Six Months Ended
April 30,
---------------------
2005 2006
---------- ----------
Cash flows from operating activities:
Net loss $(131,802) $ (8,201)
Adjustments to reconcile net loss to net cash
used in operating activities:
Early extinguishment of debt - (7,052)
Amortization of premium on marketable
securities 9,265 1,955
Non-cash loss from equity investments 159 733
Non-cash impairment of long-lived assets 7,278 -
Depreciation and amortization of leasehold
improvements 16,292 9,691
Stock compensation 5,528 8,118
Amortization of intangibles 22,549 14,525
Provision for inventory excess and
obsolescence 2,695 4,376
Provision for warranty and other contractual
obligations 5,802 6,815
Other 1,510 1,280
Changes in assets and liabilities:
Accounts receivable (20,604) (3,813)
Inventories (570) (34,119)
Prepaid expenses and other 598 5,264
Accounts payable, accrued liabilities and
other obligations (8,437) (60,318)
Income taxes payable 815 (133)
Deferred revenue 9,014 15,312
---------- ----------
Net cash used in operating activities (79,908) (45,567)
---------- ----------
Cash flows from investing activities:
Additions to equipment, furniture, fixtures
and intellectual property (6,457) (8,531)
Proceeds from sale of equipment, furniture and
fixtures 239 -
Restricted cash (690) 1,837
Purchases of available for sale securities (316,529) (130,837)
Maturities of available for sale securities 453,050 299,657
Minority equity investments, net (2,043) -
---------- ----------
Net cash provided by investing activities 127,570 162,126
---------- ----------
Cash flows from financing activities:
Proceeds from issuance of 0.25% convertible
senior notes payable - 300,000
Repurchase of 3.75% convertible notes payable - (98,410)
Debt issuance costs - (7,652)
Purchase of call spread option - (28,457)
Proceeds from issuance of common stock 4,799 16,171
Repayment of notes receivable from
stockholders 48 -
---------- ----------
Net cash provided by financing activities 4,847 181,652
---------- ----------
Net increase in cash and cash equivalents 52,509 298,211
Cash and cash equivalents at beginning of period 185,868 358,012
---------- ----------
Cash and cash equivalents at end of period $ 238,377 $ 656,223
========== ==========
Appendix A The adjustments management makes in analyzing Ciena's second quarter 2006 GAAP results are as follows: --Stock compensation costs - As of November 1, 2005, Ciena adopted SFAS 123R. In accordance with the modified prospective application transition method, Ciena's consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge for prior periods have not been restated to reflect, and do not include, the impact of SFAS 123R. Prior periods do include share-based compensation expense recognized in accordance with APB 25 as interpreted by FASB Interpretation (FIN) No. 44. --Amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. - a non-cash expense Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) arising from acquisitions of intangible assets, principally developed technology, which Ciena is required to amortize amortize To write off gradually and systematically a given amount of money within a specific number of time periods. For example, an accountant amortizes the cost of a long-term asset by deducting a portion of that cost against income in each period. over its expected useful life and which the Company feels is not reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of its ongoing operating costs operating costs npl → gastos mpl operacionales . --Restructuring costs - non-recurring charges incurred as the result of reducing the size of the Company's operations to align align (  līn),v to move the teeth into their proper positions to conform to the line of occlusion. its resources with the reduced size of the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. market as well as the result of targeting new segment opportunities within the overall market, which the Company feels are not reflective of its ongoing operating costs. --Long-lived asset impairments - non-recurring charges, incurred as a result of excess equipment classified as held for sale which the Company feels are not reflective of its ongoing operating costs. --Recovery of doubtful accounts - a non-recurring charge unrelated to normal operations Generally and collectively, the broad functions that a combatant commander undertakes when assigned responsibility for a given geographic or functional area. Except as otherwise qualified in certain unified command plan paragraphs that relate to particular commands, "normal operations" of resulting from the recovery of an amount that was previously written off. --Gain on lease settlement - a non-recurring charge unrelated to normal operations resulting from termination of obligations under a lease for an unused facility. --(Gain) loss on equity investments, net - a non-recurring loss or gain related to changes in the value of the Company's equity investments which the Company feels is not reflective of its ongoing operating costs. --Gain on extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt - a non-recurring gain related to the early extinguishment of outstanding debt. --Income tax adjustment net loss - the income tax charge or benefit on the adjusted net loss or income, which is a necessary adjustment for consistency. The Company currently has a full valuation allowance for GAAP reporting purposes and accordingly does not recognize a tax benefit for losses generated. About Ciena 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 is the network specialist, focused on expanding the possibilities for its customers' networks while reducing their cost of ownership. The Company's systems, software and services target and cure specific network pain points so that telcos, cable operators, governments and enterprises can best exploit the new applications that are driving their businesses forward. For more information, visit www.ciena.com. |
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