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Technology Stocks : Ciena (CIEN) -- Ignore unavailable to you. Want to Upgrade?

To: ratan lal who wrote (9919)	12/7/2000 10:37:13 AM
From: James Fulop	Read Replies (1) \| Respond to of 12623

>>CIEN reported lower gross profit margins. This seems to be the trend wiht most companies indicating that competition has developed.<< Actually those were not the reasons cited for the temporary dip in gross margins. I suggest you listen to the CC which should be archived at their site pretty soon. Regards

To: ratan lal who wrote (9919)	12/7/2000 2:34:43 PM
From: cfoe	Respond to of 12623

CIEN reported lower gross profit margins. The reason for gross margin slippage was neither sales price squeeze or cost of components. due to heavy demand they needed to outsource some production. Given that they were a new customer to the outsourcer, they paid a higher price. They said as they go forward in-house production capacity will increase and the costs charged by the outsourcers will decrease. so margins should improve all through fiscal '01.