Ciena Loss Grows as Revenue Falls 80%
Md. Fiber-Optic Firm Cites Telecom Slump
By Yuki Noguchi
Washington Post Staff Writer
Friday, May 24, 2002; Page E01
washingtonpost.com
Ciena Corp., the second-biggest domestic maker of fiber-optic equipment, reported yesterday that its quarterly losses increased, its revenue plunged 80 percent and its financial picture could get even worse before the troubled telecommunications industry shows any sign of reviving.
Stock in Linthicum, Md.-based Ciena has dropped 90 percent in the past year, and yesterday fell another 36 cents, or 5.6 percent, to $6.08 a share on the Nasdaq Stock Market. The whole telecommunications sector has been battered by oversupply and losses for more than a year, and it is unlikely to rebound until the end of the year or the beginning of 2003, at best, the company said.
Cost cutting by the 66 telecommunications companies that are Ciena's customers has been "extreme," Gary B. Smith, Ciena's president and chief executive, said in a conference call. "We are now seeing the carriers spending less and asking for our assistance in redeploying" existing equipment instead of buying new gear, Smith said. |
