CIENA Corporation Reports Third Quarter Revenue of $112.2 Million, Earnings Per Share of $0.33
Company Announces Plans for Atlanta Technology Development Center
Linthicum, MD — 08/20/1997Ciena Corporation (NASDAQ: CIEN) - Ciena Corporation (NASDAQ: CIEN) today reported final results for its third fiscal quarter ended August 2, 1997. The Company previously announced revenue for the quarter of $112.2 million, compared with $16.9 million for the third fiscal quarter in 1996 and $86.7 million for the quarter ended April 30, 1997.
Net income for the quarter increased to $34.9 million, or $0.33 per share, compared with net income of $10.1 million, or $0.10 per share, for the same period a year ago.
For the nine months ended August 2, 1997, revenue increased to $252.8 million from $16.9 million for the first nine months of 1996. Net income for the period was $75.6 million, or $0.74 per share, compared to $4.0 million, or $0.04 per share, for the same period in 1996.
Ciena also announced plans to open a technology development center in Atlanta, Georgia. The Company expects the location will be fully operational with a starting staff of 10 to 15 engineering professionals by the end of Ciena's fiscal year in October. The Company already has received employment commitments from five engineers whose focus initially will be on software development. The Company also expects to lease additional facilities in the Linthicum, Maryland area which it will use for expansion over the next two or three quarters.
"Ciena made significant progress toward expanding our customer base during the quarter and we are confident that we will be able to broaden that base both domestically and internationally over the coming quarters," said Patrick Nettles, Ciena's president and chief executive officer. "While we reiterate our caution that investors should not be surprised by moderating sequential growth over the next two quarters, we remain very positive about our prospects for fiscal 1998."
"We also are very excited about the opportunities we expect to result from our ongoing product development efforts," continued Nettles. "The new Atlanta facility will provide much needed additional support. It also gives Ciena a broader geographic presence - an important advantage when it comes to supporting customers and recruiting top-notch industry talent."
"As demand for bandwidth accelerates, we believe that more network operators will be turning toward solutions offered by wave division multiplexing," concluded Nettles. "Ciena's industry leading technology and our focus on customer relationships have established the Company's position as a leader in dense wave division multiplexing. Going forward, we intend to move aggressively to leverage and expand that leadership position."
Ciena specializes in network transition. We provide the flexible platforms, intelligent software and professional services to build converged networks for enhanced services and applications. With a growing global presence, Ciena leverages its heritage of practical innovation to deliver maximum performance and economic value in communications networks worldwide. For more information, visit www.ciena.com.
Forward-looking statements in this release, including statements regarding (1) the expectation that the Atlanta technology support center will employ 10 to 15 engineering professionals by fiscal year end, (2) the expected lease of additional facilities in the Linthicum area, (3) the Company's confidence that it will be able to broaden its customer base, (4) moderating sequential growth in the fourth quarter of fiscal year 1997 and the first quarter of fiscal 1998, (5) the Company's very positive outlook for its prospects for fiscal 1998, (6) the expectation of exciting opportunities from ongoing product development efforts, and (7) accelerating bandwidth demand, are based on information available to the Company as of the date hereof. The Company's actual results could differ materially from those stated or implied by such forward-looking statements, due to risks and uncertainties associated with the Company's dependence on its major customers and their spending patterns, the recent introduction of its products, and the overall management of its expansion. The forward-looking statements should be considered in the context of these and other risk factors disclosed in the Company's report on Form 8-K, as filed with the Securities and Exchange Commission ("SEC") on February 19, 1997, as further amended and restated by Amendment No. 1 to the Form 8-K, as filed with SEC on August 6, 1997, and as supplemented by the discussion of risk considerations in the Company's Quarterly Report on Form 10-Q, as filed with the SEC on August 20, 1997.
Nicole Anderson
Ciena Corporation
(877) 857 -7377
pr@ciena.com
Marie Downing
Ciena Corporation
(888) 243-6223
ir@ciena.com
