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

To: Louis Riley who wrote (4709)	10/31/1998 6:14:00 PM
From: CJ	Respond to of 12623

<Ciena Shares Rise ..> Upate #3 = w/Closing $/V. & option comment: quote.bloomberg.com Ciena Shares Rise on Expectations of New Contract (Update3) Linthicum, Maryland, Oct. 30 (Bloomberg) -- Ciena Corp. shares rose 11 percent amid expectations the top seller of equipment to boost capacity of phone networks will soon unveil a contract with a new customer. Ciena rose 1 3/4 to 17 3/16 in trading of 26.1 million, making it the most-active U.S. stock. Ciena is slowly rebuilding earnings expectations by signing up new customers, after a profit warning and the loss of two contracts prompted Tellabs Inc. last month to call off its plan to buy Ciena for as much as $7.1 billion. Since then, the Linthicum, Maryland-based company has unveiled two new contracts. ''The company has landed a new carrier relationship they are excited about,'' said Kevin Slocum, an analyst at SoundView Technology Group, who rates Ciena ''hold.'' Ciena spokesman Denny Bilter declined to comment, other than to say the company's always looking for new customers. Some investors have also speculated Ciena may still be a takeover target for a larger phone-equipment maker looking to get into the fast-growing market for so-called wave-division multiplexing equipment. Some analysts say a buyout is unlikely. ''I don't think they're getting bought out any time soon,'' said Steven Levy, an analyst at Lehman Brothers Inc., who doesn't rate the stock. ''You're talking about a $2 billion deal that would probably be dilutive'' to earnings. Levy also said the company's decision in September to reprice employee stock options to 12 3/8 a share after the stocked dropped 87 percent would make it difficult to qualify for pooling of interests accounting. That could make an acquisition of Ciena less attractive, he said. Options to buy Ciena shares at 17 1/2 expiring Nov. 21 were also most active. The options rose 3/4 to 1 15/16 in trading of about 8,000 contracts, more than eight times the daily average.