Wednesday, March 4, 2009

Ciena' s Revenues Decline 7% Sequentially, 200 Job Cuts

Ciena reported revenue for its fiscal first quarter ended January 31, 2009 of $167.4 million, representing a 7% sequential decrease from fiscal fourth quarter 2008 revenue of $179.7 million, and a decrease of 26% over the same period a year ago, when Ciena reported revenue of $227.4 million. There was a GAAP net loss of $(24.8) million, or $(0.27) per common share.

Ciena also announced a headcount reduction of 200 employees, or 9% of its global workforce, with reductions occurring across every organization and geography. As part of this action, the company will close its Acton, Massachusetts, research and development facility during the course of the next four months. Ongoing development work previously conducted at the Acton facility will be consolidated on a functional basis with related efforts already in progress at other Ciena locations.

"We are managing our business with the expectation that current macroeconomic realities will continue to pressure our customers' spending levels," said Gary Smith, Ciena's CEO and president. "With operating expenses down sequentially 12% from our fiscal fourth quarter, this quarter's results reflect the benefit of company-wide cost-control initiatives, and we continue to take steps to drive efficiencies and more tightly align our resources with market opportunities. At the same time, we are preserving our strategic capabilities and competitive advantage by prioritizing key product, technology and market initiatives."

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