Sharck Soup Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Sharck Soup

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Sharck who started this subject	12/19/2000 1:24:35 PM
From: Sharck	of 37746

Ciena (CIEN), announced today that it had agreed to acquire privately-held Cyras Systems for $2.6 billion in stock; Ciena will also assume Cyras' $150 million in outstanding debt. Cyras' family of products will help Ciena extend its reach from the core of service provider networks to metropolitan networks. Metropolitan networks that surround cities are currently being upgraded to handle the rapidly increasing demands of data transmission created by the Internet. Ciena expects the deal to be accretive to earnings in the second half of 2002 and dilutive by 19 to 22 cents for 2001. With this acquisition, Ciena will compete directly with Cisco (Nasdaq:CSCO) -- which purchased Cerent in August 1999 for $6.9 billion for the same functionality -- and Redback (Nasdaq:RBAK) -- which purchased Siara in November 1999 for $4.3 billion -- in the metropolitan markets. Investors reacted negatively to the news because of the heavy earnings dilution expected in 2001. Shares of Ciena were down 11 11/16 (-12.13%) to 84 11/16; shares of Cisco were up 1 11/16 (+3.93%) to 44 5/8; and shares of Redback were down 4 1/16 (-5.70%) to 67 1/4.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next