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

To: john dodson who wrote (6920)	4/6/1999 3:02:00 PM
From: Doughboy	Respond to of 12623

Sometimes the most obvious answer is the correct one: this decline is because of the SEC filings. I'm personally concerned about the statement about the customer to which the Ciena press release refers. I would research the 8k to learn more. Doughboy Ciena stock off after SEC filings spook investors NEW YORK, April 6 (Reuters) - Shares of CIENA Corp. (Nasdaq:CIEN - news) fell on Tuesday after the telecommunications equipment maker's regulatory filings spooked investors despite a lack of new information, analysts said. Although Ciena's Securities and Exchange Commissions filings contained no new details, analysts said some investors may have reacted negatively to the information, which was written under the new ''plain English'' style required by regulators. The SEC requires companies to explain its financial details and corporate information more clearly than in the past. Shares of Ciena hit an intraday low of $17.875, but recovered slightly to trade at $19.625, down $1.69, in heavy Nasdaq trading. ''There may be some terminology that is bothering people...but I don't think the intent (by Ciena) was to say there was a higher level of risk'' in their business, said SoundView Financial Group analyst Kevin Slocum. ''The information is blunt, but for anyone following Ciena closely, it is not new information,'' said one analyst who declined to be named. The combination of the ''plain English'' format and the large quantity of filings in the past few days ''may have caused some confusion in the market,'' said Ciena spokesman Denny Bilter. Ciena has filed four documents with the SEC since April 1. The filings provided information about its acquisition of Lightera Networks, which was completed on March 31, and its planned acquisition of Omnia Communications. Those deals were announced on March 15. ''There are no basic changes. We have put in those filings the risk associated with the mergers, but there was no new information in there,'' Bilter said. In the filings, Ciena reiterated that it faces intense competition from larger rivals and that it relies on a relatively small number of customers. It said it is vulnerable to changes in its customers' spending habits and to the overall demand for its products. Ciena makes products which increase the capacity of fiber optic communications networks. Ciena also said it believes its acquisitions of Lightera and Omnia are strategically crucial for it to expand its product mix, but these deals come with some risk. Since both start-up companies are still in the development stage, they will not contribute any revenues or earnings for at least several months, Ciena said. ''As a result, we expect to report no better than breakeven results of operations, may report operating losses, for the next three or four quarters,'' Ciena reiterated in the filing. Ciena said it expects its stock price to continue to be volatile as investors absorb the details of its acquisitions and monitor how Ciena absorbs the two companies.