WashPost. Ciena Suspects Sabotage of Merger
djane.
swell post post. but there's more in that SEC filing. to wit:
In a filing with the Securities and Exchange Commission, Ciena said its recent setbacks may hurt future sales. In addition, the company said, the expense of marketing its products to regional Bell companies and other potential customers could cause the company's earnings in the near future to "moderate or even decline, even if revenues were to increase, which is not likely in the near term."
"[Ciena] presently expects fiscal fourth-quarter 1998 revenues and operating results will be materially below those reported for the third fiscal quarter 1998," the report continued.
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In its filing, Ciena reports that the company delaying the $25 million order was Digital Teleport Inc. St. Louis-based DTI announced Sept. 9 that it had chosen Pirelli SpA over Ciena as its top provider of equipment that allows phone lines to handle more calls.
Ciena said the $25 million DTI order "now appears to be further delayed, reduced or possibly withheld completely as the result of certain commitments made by DTI with Pirelli."
The filing also raises questions about Ciena's purchase of ATI Telecom International Ltd. The all-stock purchase, announced Jan. 26 and initially valued at $52.5 million, "was undertaken in large part to position [Ciena] to be able to service the installation requirements associated with any AT&T deployment," the filing said.
Ciena fears more clouds just ahead
Recent setbacks likely to hurt sales, and profit may weaken; Filing undercuts ATI deal Filing with SEC
By Mark Ribbing
Sun Staff
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