Corvis Shareholders Approve Merger of Dorsal Networks; Creates Global End-to-End Supplier of Optical Networks
LINTHICUM, Md., May 10 /PRNewswire-FirstCall/ -- At the annual meeting of Corvis Corporation (Nasdaq: CORV - News) today, shareholders approved by a wide margin the proposed merger of Dorsal Networks. Additionally, Chief Executive Officer Dr. David Huber summarized the year 2001.
During the meeting, Corvis shareholders approved, by more than a 4 to 1 margin, the merger with Dorsal Networks, a turnkey supplier of transoceanic and regional undersea networking solutions.
"This merger positions Corvis as one of the few global optical networking equipment providers with integrated undersea and terrestrial optical networking solutions, making us a true end-to-end global network supplier," said Dr. Huber. "Dorsal will be a natural extension of our existing business. The merger will help us move from providing coastal links with our Corvis XF repeaterless systems to providing complete transoceanic routes."
"We believe this merger is the right strategic fit for our business and the right decision to create value for our shareholders," Dr. Huber continued. "We are pleased that our shareholders have given us their confidence, which will enable Corvis to complement our current terrestrial solutions, build on the momentum of our existing undersea business and significantly expand our addressable market."
Fiscal 2001 was a year of accomplishments for Corvis. During the past year, Corvis expanded its customer base with several leading international carriers in a very challenging market. In July 2001, Corvis announced a contract with Telefonica for its repeaterless festoon product. At the same time, Corvis signed a contract with France Telecom.
Dr. Huber said that fiscal 2001 was the year that Corvis delivered the world's first commercial all-optical network, as well as the year in which Corvis became the first company to deploy Raman amplification in a commercial terrestrial network. Corvis also was the first company to enable an OC-192c signal to transmit over 6,000 km without electronic regeneration in 2001.
Commenting on 2002 and beyond, Dr. Huber noted, "Service providers are now requiring networking solutions that will allow them to lower capital and operational expenses. They want to manage their traffic more efficiently and allow their network architecture to be more flexible in this changing business climate. We believe this shift in thinking plays into Corvis' proven strengths."
Dr. Huber also told shareholders that, "Corvis is well-positioned to weather this challenging market. The near-term outlook is difficult for every company in our sector. But we believe our long-term prospects are good. Over the past year we took the necessary steps to position the company for long- term success and profitability."
"We are pleased with our customer activity and commitments to work with us during a challenging market. We are continuing to gain traction with a number of industry-leading carriers as indicated by increased levels of lab and field trial activity. We will continue to target large global carriers and focus strategic R&D around core product lines," Dr. Huber added.
Results of Proxy Voting
Corvis' proposed acquisition of Dorsal Networks was approved by an 81 percent majority of the votes cast at the meeting.
Shareholders reelected Joseph Hardiman to his second full term on the Board. Mr. Hardiman has served on the Corvis Board since July 2000 and is also the chairman of Corvis' Audit Committee. For 10 years, Mr. Hardiman served as the President and Chief Executive Officer of the National Association of Securities Dealers and the NASDAQ Stock Market.
Shareholder's also approved the selection of KPMG as Corvis' independent auditors for fiscal year 2002.
About Corvis
From point-to-point links to all-optical networks, Corvis Corporation delivers innovative optical network solutions that drive carrier profitability faster than any other vendor. Corvis continues to demonstrate optical leadership with numerous industry firsts, including the first and only commercial all-optical network and integrated all-optical switches, the first to transmit over 6000 km without costly electronic regeneration and first to deploy Raman amplification commercially. Corvis' innovative solutions enable carriers to provision new wavelength-based services rapidly and to tailor dynamic service level agreements for rapid revenue generation. Corvis' future- ready product portfolio solves carrier network challenges with scalable, robust solutions that reduce capital and operating expenditures. With offices across North America and Europe, Corvis operates Research and Development centers of excellence at its global headquarters in Columbia, Maryland, and in Lannion, France. For more information, call Corvis at 443 259-4000 or visit www.corvis.com.
Corvis and the Corvis logo are trademarks and/or service marks of the Corvis Corporation. All other trademarks are the property of their respective owners.
Note: This announcement contains certain forward-looking statements that are subject to risks and uncertainties. Actual results could differ materially from those currently anticipated as a result of a number of factors, including, but not limited to, the risks and uncertainties discussed under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's filings with the Securities and Exchange Commission.
CONTACT: Public Relations: Keira N. Shein, +1-443-259-4006, or Fax: +1-443-259-4798, or pr@corvis.com; or Investor Relations, Andrew G. Backman, +1-443-259-4600, or Fax: +1-301-310-3134, or investorinformation@corvis.com, both of Corvis.
SOURCE: Corvis Corporation |
