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

To: craig crawford who wrote (2053)	4/27/1998 12:00:00 PM
From: joe	Read Replies (1) \| Respond to of 12623

CIENA Expands European Operation BusinessWire, Monday, April 27, 1998 at 00:21 (Published on Sunday, April 26, 1998 at 00:03) LINTHICUM, Md.--(BUSINESS WIRE)--April 27, 1998-- Names Mr. Guy Powell as European General Manager CIENA Corporation (NASDAQ:CIEN) today announced plans to open a European support center near London's Heathrow International Airport. It is expected that the new facility will be fully staffed and operational within the next ninety days. In addition, it was announced that Guy Powell has been hired as the general manager for CIENA's European operation, reporting to Gary Smith, vice president of CIENA's international organization. CIENA's European support center will provide additional customer service and technical support for CIENA's current European deployments as well as support for the Company's expansion plans internationally. The facility will house European-focused sales, marketing and systems engineering. "The significant growth of data services worldwide continues to fuel bandwidth demand, causing service providers to reevaluate network plans," said Patrick Nettles, CIENA's president and chief executive officer. "We have already begun to see evidence that this global, data-centric evolution, coupled with the impact of deregulation in the European market is driving requirements for additional capacity. We expect the opportunity to add new customers and to increase our profile in Europe and are focused on investing in the infrastructure required to support an enhanced international presence." Guy Powell's responsibility in his new role as general manager of the European operation will include sales, marketing and customer service for all of Europe. Powell most recently served as sales and channel marketing vice president of Infonet Services Corporation and prior to that as managing director with CASE Cabling Company. Powell has twenty years of experience serving in various functions of the communications industry. "Guy Powell's experience in the communications industry and working knowledge of Europe will provide the leadership needed for CIENA to establish itself as one of the premier vendors in the emerging next generation of broadband networks," said Gary Smith. "Guy's first task will be to establish the Euro support center and ensure that it is staffed sufficiently to support the growth we anticipate in that market during the next eighteen months." CIENA's recent activities in Europe include deployment of the first 16-channel DWDM system (MultiWave Sentry) in Cable & Wireless Communications' (C&WC) network in 1997 and completion of the largest live DWDM network in Europe with C&WC in February, 1998. At the time of C&WC's second contract with CIENA, it was also announced that CIENA would supply the MultiWave Sentry for its "Germany 6" project.

To: craig crawford who wrote (2053)	4/30/1998 12:47:00 AM
From: Milkman	Respond to of 12623

Craig, sorry it took so long to respond. <<I guess I don't quite understand what you are saying. Are you saying that it costs CIEN more than twice as much money to develop a DWDM with twice as much capacity? Or are you saying that the carriers who buy the DWDM equipment will have to pay more than twice as much to double their capacity?>> What I am saying is that CIEN and all the others that plan to come out with the next generation DWDM products will have to struggle with cost. I am disinclined to buy the microprocessor comparison because it is more of a commodity product with extremely wide distribution and massive volume that allows the manufacturer to recoup R&D and establish manufacturing and raw material efficiencies. <<Either way I'm not sure I agree. Microprocessors are millions of times more powerful today than they were a few decades ago, yet they don't cost a million times as much and they didn't cost someone like INTC millions of times as much money to build.>> I would point to the next generation televisions or the next generation cars (Electric) or the next generation ATM based bandwidth management products(LU/Alcatel/Etc...). These products will all likely come at a premium unless/until the manufacturers (CIEN,LU,Etc..) are willing to sacrifice margin or are able to establish development/production efficiencies. Maybe the cost to manufacture is more than double maybe it's not. All of the manufacturers will have a hard time selling it unless the cost benefit for the end users makes sense. Regards, Milkman