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

To: djane who wrote (3171)	9/16/1998 7:20:00 AM
From: Beltropolis Boy	Read Replies (1) \| Respond to of 12623

WashPost. Ciena Suspects Sabotage of Merger djane. swell post post. but there's more in that SEC filing. to wit: In a filing with the Securities and Exchange Commission, Ciena said its recent setbacks may hurt future sales. In addition, the company said, the expense of marketing its products to regional Bell companies and other potential customers could cause the company's earnings in the near future to "moderate or even decline, even if revenues were to increase, which is not likely in the near term." "[Ciena] presently expects fiscal fourth-quarter 1998 revenues and operating results will be materially below those reported for the third fiscal quarter 1998," the report continued. . . . In its filing, Ciena reports that the company delaying the $25 million order was Digital Teleport Inc. St. Louis-based DTI announced Sept. 9 that it had chosen Pirelli SpA over Ciena as its top provider of equipment that allows phone lines to handle more calls. Ciena said the $25 million DTI order "now appears to be further delayed, reduced or possibly withheld completely as the result of certain commitments made by DTI with Pirelli." The filing also raises questions about Ciena's purchase of ATI Telecom International Ltd. The all-stock purchase, announced Jan. 26 and initially valued at $52.5 million, "was undertaken in large part to position [Ciena] to be able to service the installation requirements associated with any AT&T deployment," the filing said. Ciena fears more clouds just ahead Recent setbacks likely to hurt sales, and profit may weaken; Filing undercuts ATI deal Filing with SEC By Mark Ribbing Sun Staff baltimoresun.com

To: djane who wrote (3171)	9/16/1998 12:28:00 PM
From: Paul Shread	Respond to of 12623

You know, I've got to say, I'm tired of hearing CIEN whine about sabotage. If you read the Washington Post business magazine article last week, you'd know that everything that could go wrong did go wrong in the T trial, and that CIEN was slow to respond to those problems. Smoking circuit boards in the telecom industry are about the worst thing that can happen; as the Post pointed out, that was the cause of the infamous Mother's Day outage of 10 years ago, so it raises real warning flags with T. Are they really claiming that was LU's fault? CIEN should be spending their time and money trying to get back on track, not trying to pin this thing on LU. What are they going to claim next, that Pirelli and Digital Teleport were doing LU a favor? The damage to this company has been very unfortunate and possibly lasting, but they don't have a prayer of getting back on track as long as they're looking for someone to blame. I have no doubt that LU used its dominance to undercut them on price, as did Pirelli; that happens all the time in every business, and you can't bring every market leader up on charges. Excuse my rant, but CIEN has its own business and technological problems, and they've got to be addressing those, not trying to shift the blame elsewhere. Paul