Wednesday, August 30, 2006

Ciena Reports 16% Sequential Revenue Rise, 1-for-7 Reverse Stock Split

For its fiscal third quarter 2006 ended July 31, 2006, Ciena reported revenue of $152.5 million, representing a 16.3% sequential increase from fiscal second quarter revenue of $131.2 million, and an increase of 38.0% over the same period a year ago when the company reported sales of $110.5 million. Ciena's net loss (GAAP) for the fiscal third quarter 2006 was $4.3 million, or a net loss of $0.01 per share. This compares with a reported GAAP net loss of $51.0 million, or a net loss of $0.09 per share, for the same period a year ago.

"Strong sequential revenue growth in our fiscal third quarter, combined with significant progress toward a normalized operating model, attests to continued success in the execution of our strategy," said Ciena CEO and President Gary Smith. "We continue to see positive indicators in overall market demand for next-generation solutions that maximize the business case for IP service delivery," said Smith. "As a result of these market dynamics and strong traction across our product portfolio and customer landscape, we expect our fiscal fourth quarter revenue will trend upward sequentially by as much as 5% from our fiscal third quarter revenue."

Separately today, Ciena announced that its Board of Directors has approved a one-for-seven reverse split of its common stock to be effective as of 5:00 p.m. Eastern Time on September 22, 2006. Ciena said the purposes of the reverse split are "to increase the per share trading price of Ciena's common stock, thereby appealing to a broader range of investors; and to provide investors with more useful information in making period-to-period comparisons of Ciena's earnings per share."

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