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

To: Jeff Jordan who wrote (2034)	4/22/1998 5:26:00 PM
From: MangoBoy	Read Replies (1) \| Respond to of 12623

[CIENA Acquires Terabit Technology, Inc.] LINTHICUM, Md.--(BUSINESS WIRE)--April 22, 1998-- Company's In-process Development Efforts Expected to Contribute to Next Generation of Optical Transmission Gear CIENA Corporation (Nasdaq: CIEN) today announced that it has acquired privately held Terabit Technology, Inc., in exchange for approximately 134,000 shares of CIENA common stock, as well as approximately $1.1 million cash and the assumption of certain Terabit stock options. Prior to the acquisition, CIENA had been a 20% owner of Terabit, a developer of optical components known as photodetectors or optical receivers. Based on the closing price of CIENA's stock on Tuesday, April 21, 1998, the transaction is valued at approximately $11.7 million excluding shares of Terabit already owned by CIENA. The transaction will be accounted for as a purchase. Of the total purchase price, approximately, $9.5 million will be accounted for as in-process research and development, resulting in a one-time charge which is expected to be dilutive to the Company's second quarter fiscal 1998 earnings in the range of $0.08 to $0.10. "As was the case when we decided to produce our own in-fiber Bragg gratings for optical filters, we believe the proprietary technology being pioneered by Terabit can provide CIENA with a considerable competitive advantage, ultimately enabling us to reduce equipment costs and improve network performance," said Patrick Nettles, CIENA's president and chief executive officer. "While CIENA is not interested in pursuing downward integration to the point of becoming an optical component supplier, we will continue to evaluate innovative component-level technologies that enable us to further extend our technology lead in transport systems." Terabit was founded in June 1995. Following completion of the transaction, the Company's key employees, including founder Aaron Hawkins, will immediately join CIENA's research and development organization, reporting to CIENA's senior vice president, products and technologies, Steve Chaddick. Terabit's office is expected to remain at its current location in Santa Barbara, California.