CC enlightening ... "higher margins" & "trebled market"
by: ph_wilson (35/M/MO)
45238 of 45318
It will take an hour of your life, but if you have significant bucks in Ciena you might think of it as a potentially highly paid hour of work, if you use the info intelligently. 1-800-753-9756
I'm still digesting the technical details (and probably forever will be), so I don't want to venture too far into that. My impression is that the real "exciting" acq is Lightera, while Omnia serves to round out a "complete solution" offering that CienaLightera brings. Nettles et al claim that the market potential of Ciena has just tripled, and that everything will be in place within the year (perhaps 12-18 mos for greater integration). A Ciena team workign on a less ambitious version of the lightera product will be turned now towards the integration issues.
Nettles is so excited he purportedly has "barely slept in the last month" and "has to be tied to his seat." Given his less-than-stellar past PR performances :) & past conservatism, you have to suspect these feelings are genuine; the man is not an actor.
The other big points: both Lightera & Omnia products are expected to have clearly higher margins than current Ciena offerings (so one would expect the "integrated solution,' if/when it comes to pass, to be v.high margin), and the acq's are expected to accretive by 2nd half FY2000, even though there are no products shipping today. Omnia is alpha now, going beta at the end of the month, and will ship in June (?). Lightera expects to ship before year end. revenues for this FY99 should move from around 660 to 750 (?). Deals are fixed # of shares with no collars.
BTW, Lightera switching is via electronics, so don't get excited at finding the "optical holy grail" yet. Lightera CEO had no comment on future plans along this front.
Posted: Mar 15 1999 12:41PM EST as a reply to: Msg 1 by YahooFinance
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