Glenn,
Everything in the article that was posted could have been lifted from the CIEN 10-Q. Please notice this item in the 10Q about AT&T and about LU competition (deemed NOT material, a significant representation):
"Although the Company has previously announced a trial evaluation agreement and a five year agreement to supply 16-channel MultiWave Sentry systems to AT&T, before AT&T would become a purchasing customer, the Company will have to be successful in rigorous testing and evaluation which are ongoing over the next several months. The Company believes it is making important progress and that it ultimately will be successful in such testing and evaluation, but there is no assurance of that outcome, nor is there assurance as
to when the period of testing will be completed. Testing is an interactive and dynamic process which is unpredictable, frequently subject to unanticipated delay, and not often accelerated. Even if testing is successfully completed, the Company does not expect shipments to begin until late in the first half or early in the second half of 1998 (with acceptance and revenue recognition to follow),
and in any event the Company is unable to predict the volume, duration or timing of any purchases which might ensue from AT&T. Additionally, AT&T recently announced plans to test and deploy a proposed 80-channel DWDM system being developed by Lucent echnologies, Inc. ("Lucent"). Lucent has announced that this proposed product is expected to be commercially available worldwide in the fourth quarter. If such a product is in fact developed, performs as advertised, and is manufacturable by Lucent in volume quantities by the fourth quarter of this year, and if core demand for bandwidth is sufficient to prompt interest in such a product, the likelihood of significant orders from AT&T for the Company's MultiWave Sentry system may diminish. See
"Competition". The Company currently believes the impact of Lucent's
announcement on AT&T's likely orders for the Company's systems will not be material; however, timing of shipments and revenue recognition from AT&T, if delayed by reason of extended testing of MultiWave Sentry, or for any other reason, could and likely would cause substantial swings, and potentially material and adverse effects, on the Company's quarterly financial condition and results of operations."
Gary Korn |
