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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
April 20, 2004
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Date of Report (Date of earliest event reported)
CIENA Corporation
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(Exact name of registrant as specified in its charter)
Delaware 0-21969 23-2725311
(State or other jurisdiction (Commission File No.) (IRS Employer
of incorporation) Identification No.)
1201 Winterson Road, Linthicum, Maryland 21090
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(410) 865-8500
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Not applicable
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(Former name or former address, if changed since last report)
Item 5. Other Events and Regulation FD Disclosure.
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On April 20, 2004, CIENA Corporation issued a press release announcing the
closing of its San Jose, California facility on September 30, 2004. The press
release is being furnished hereto as Exhibit 99.1.
Item 7. Financial Statements and Exhibits.
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99.1 Press Release dated April 20, 2004.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CIENA CORPORATION
Date: April 20, 2004 By: /s/ Joseph R. Chinnici
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Joseph R. Chinnici
Senior Vice President and Chief Financial
Officer
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Exhibit 99.1
CIENA To Consolidate Facilities; Announces Planned Actions Toward Goal
of 10-20% Operating Expense Reductions
LINTHICUM, Md.--(BUSINESS WIRE)--April 20, 2004--CIENA(R)
Corporation (NASDAQ:CIEN), a leading global provider of innovative
networking solutions, today announced plans to consolidate facilities
as part of its actions to achieve its previously stated goal of
reducing ongoing operating expenses by 10 to 20 percent in fiscal year
2004. The Company intends to close its San Jose, Calif. facility on
September 30, 2004. The San Jose closing, and related actions, are
expected to affect approximately 425 employees, or approximately 25
percent, of CIENA's current workforce by the end of the fiscal year.
All ongoing product development and customer support activities
currently based in San Jose will be consolidated on a product group or
functional basis with efforts in progress at other CIENA locations.
For instance, San Jose-based CoreDirector(TM)-related development will
be consolidated with CIENA's ongoing CoreDirector development already
taking place in Alpharetta, Ga. and in Linthicum, Md.;
ONLINE(TM)-related development will be consolidated with ONLINE
activities underway in Research Triangle Park, N.C. CIENA also
operates development centers in Acton, Mass. and Kanata, Ontario.
The planned actions will occur over the course of the next several
fiscal quarters and are expected to have minimal effect on current
product development efforts.
"The decision to close a facility is especially difficult because
it affects not only employees and their families, but the surrounding
community as well," said Gary Smith, CIENA's president and chief
executive officer. "Though difficult, the cost savings that will
result from this consolidation make it a necessary step in the process
of restoring CIENA's profitability. We remain committed to supporting
our complete networking and service delivery solutions portfolio - one
of the broadest next-generation offerings in the industry - and to
providing the high quality of service and support our customers have
come to expect from CIENA."
CIENA estimates that the actions announced today will enable the
Company to meet its previously announced objective of lowering ongoing
operating expenses by 10 to 20 percent during this fiscal year by
generating between $60 to $70 million in annualized cost savings,
including approximately $55 to $65 million at the ongoing operating
expense level, prior to restructuring-related or other non-operating
charges. CIENA expects that the majority of the cost savings will be
in place by the end of its fourth fiscal quarter, 2004. The Company
expects to record total restructuring charges of between $75 to $85
million associated with these actions. The timing of the restructuring
charges will correspond to the timing of specific actions and will
likely occur over the next several fiscal quarters.
Today's announced reductions and associated restructuring charges
are unrelated to and will not affect CIENA's planned acquisitions of
Catena Networks, Inc. and Internet Photonics, Inc., both of which are
expected to close by the end of CIENA's third fiscal quarter.
ABOUT CIENA
CIENA Corporation delivers innovative network solutions to the
world's largest service providers and enterprises, increasing the
cost-efficiency of current services while enabling the creation of new
carrier-class data services built upon the existing network
infrastructure. Additional information about CIENA can be found at
www.ciena.com.
NOTE TO INVESTORS
This press release contains certain forward-looking statements
based on current expectations, forecasts and assumptions of CIENA (the
Company) that involve risks and uncertainties. Forward-looking
statements in this release, including but not limited to the Company
intends to close its San Jose, Calif. facility on September 30, 2004,
the San Jose closing, and related actions, are expected to affect
approximately 425 employees, or approximately 25 percent, of CIENA's
current workforce by the end of the fiscal year, the planned actions
will occur over the course of the next several fiscal quarters and are
expected to have minimal effect on current product development
efforts, CIENA estimates that the actions announced today will enable
the Company to meet its previously announced objective of lowering
ongoing operating expenses by 10 to 20 percent during this fiscal year
by generating between $60 to $70 million in annualized cost savings,
including approximately $55 to $65 million at the ongoing operating
expense level, prior to restructuring-related or other non-operating
charges, CIENA expects that the majority of the cost savings will be
in place by the end of its fourth fiscal quarter, 2004, the Company
expects to record total restructuring charges of between $75 to $85
million associated with these actions, the timing of the restructuring
charges will correspond to the timing of specific actions and will
likely occur over the next several fiscal quarters, and today's
announced reductions and associated restructuring charges are
unrelated to and will not affect CIENA's planned acquisitions of
Catena Networks, Inc. and Internet Photonics, Inc. both of which are
expected to close by the end of CIENA's third fiscal quarter, 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 in such forward-looking statements, due to risks and
uncertainties associated with the Company's business, which include
the risk factors disclosed in the Company's Report on Form 10-Q filed
with the Securities and Exchange Commission on February 19, 2004.
Forward-looking statements include statements regarding the Company'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. The Company assumes no
obligation to update the information included in this press release,
whether as a result of new information, future events or otherwise.
CONTACT: CIENA Corporation
Investor Contacts:
Suzanne DuLong or Jessica Towns
(888) 243-6223
ir@ciena.com
or
Press Contacts:
Aaron Graham, (877) 857-7377
pr@ciena.com