Ciena / CIEN

About Ciena

1201 Winterson Rd., Linthicum, Md. 21090
www.ciena.com | 410-694-5700 | Founded: 1992

Industry: Telecommunications | Category: Public Companies

Ciena has been making a difficult transition from its roots as a fiber-optic telecommunications equipment manufacturer. In 2005, the company saw its potential base shrink as four of its customers were involved in mergers: Verizon with MCI Inc. and AT&T Corp. with SBC Communications Inc. Ciena said it's too early to gauge the impact of these mergers on its business. But the company warned that its earnings and revenue may fluctuate from quarter to quarter based on the size of orders from large customers.
Ciena has continued its strategy to win contracts overseas. The largest was a deal with BT Group, Britain's largest telephone company, to become a supplier to BT's enormous network expansion project. And Ciena continued its cost-cutting mission. At the end of its fiscal year on Oct. 31, Ciena had 1,497 employees, down from 1,651 a year earlier and 1,816 employees in 2003. In November, Ciena terminated 57 more employees, most of them from a facility in Kanata, Ontario. Also in November, chief executive Gary B. Smith asked for, and received, a 23 percent cut in his base salary.
In another cost-saving move, the company opened a research and development facility in India, outside New Delhi, hoping to benefit from that country's lower-wage workforce.

Executive chairman: Patrick H. Nettles

President and CEO: Gary B. Smith

2005 Financial Data

Revenues: $427,257,000 | Net Income: $-435,699,000
Asssets: $1,675,229,000 | Earnings Per Share: $-0.76
Total employees: 1,497 | Local employees: 600