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To: Glenn D. Rudolph who wrote (139663)	2/21/2002 5:24:43 PM
From: H James Morris	Read Replies (1) \| Respond to of 164684

The last person to hear of the optical glut was "boom boom" Billy Harmond. >>A more recent example is beleaguered optical telecom gear company Ciena (CIEN: news, chart, profile). The company announced two rounds of layoffs in the past six months. It warned earlier this month that first-quarter sales would drop 50 percent from the same period a year ago. And just as it makes its formal quarterly announcement this Thursday, the company announced an all-stock purchase of ONI Systems (ONIS: news, chart, profile), another optical fiber company. At $8.73 a share, Ciena has a market cap of $2.9 billion. This is not to say that Ciena will go the way of Sunbeam. But given that the telecom industry is still digesting a glut of supply, does an investor want to take a chance?

To: Glenn D. Rudolph who wrote (139663)	2/21/2002 11:22:49 PM
From: Bill Harmond	Read Replies (2) \| Respond to of 164684

I think Hugh Martin needs to have his head examined agreeing to exchange terms knowing the pending Ciena guidance coming a couple days later.

To: Glenn D. Rudolph who wrote (139663)	2/21/2002 11:42:12 PM
From: Bill Harmond	Read Replies (1) \| Respond to of 164684

ONI’s numbers are not a part of Ciena’s revenue projections going forward. But analysts like Schafer and Kevin Slocum of Wit Soundview say that ONI can only help the company in the future. “I still think this was a great purchase from Ciena’s perspective,” says Slocum. Schafer agrees. “In the long run, Ciena is still the horse to bet on. Their problems are symptomatic of the sector. But with ONI they are now a top player in all three of the major optical markets -- long haul, metro DWDM, and optical switching.” lightreading.com