GAAP Loss Will Not Affect Ciena's Income from Operations
LINTHICUM, Md.--(Business Wire)--
Ciena(R) Corporation (NASDAQ:CIEN) today announced that it expects
to recognize a GAAP loss totaling between $5.0 million and $6.0
million in the third quarter of fiscal 2008, relating to commercial
paper investments in Rhinebridge LLC and SIV Portfolio plc (formerly
known as Cheyne Finance plc). Ciena had previously recognized a loss
of $13.0 million related to its investment in these two structured
investment vehicles (SIVs), each of which entered into receivership
and failed to make payment at maturity during the fourth quarter of
Ciena's fiscal 2007.
At April 30, 2008, Ciena's commercial paper issued by these SIVs
had a carrying value of $25.6 million. The estimated GAAP loss for the
third quarter is based upon valuation information provided by Ciena's
investment manager on July 16, 2008 in connection with the
restructuring of these SIVs. This estimated GAAP loss will not affect
Ciena's income from operations for the third quarter of fiscal 2008.
As stated previously, Ciena believes that its SIV-related exposure is
limited to these two investments.
About Ciena
Ciena specializes in network transition. We provide the flexible
platforms, intelligent software and professional services to
build converged networks for enhanced services and applications. With
a growing global presence, Ciena leverages its heritage of practical
innovation to deliver maximum performance and economic value in
communications networks worldwide. For more information, visit
www.ciena.com.
Note to Ciena Investors
This press release contains certain forward-looking statements
based on current expectations, forecasts and assumptions that involve
risks and uncertainties. These statements are based on information
available to the Company as of the date hereof; and Ciena's actual
results could differ materially from those stated or implied, due to
risks and uncertainties associated with its business, which include
the risk factors disclosed in its Report on Form 10-Q filed with the
Securities and Exchange Commission on June 6, 2008. Forward-looking
statements include statements regarding Ciena's expectations, beliefs,
intentions or strategies regarding the future and can be identified by
forward-looking words such as "anticipate," "believe," "could,"
"estimate," "expect," "intend," "may," "should," "will," and "would"
or similar words. Forward-looking statements in this release include
the statements that Ciena "expects to recognize a GAAP loss totaling
between $5.0 million and $6.0 million in the third quarter of fiscal
2008," "this estimated GAAP loss will not affect Ciena's income from
operations for the third quarter of fiscal 2008" and "Ciena believes
that its SIV-related exposure is limited to these two investments."
Ciena assumes no obligation to update the information included in this
press release, whether as a result of new information, future events
or otherwise.
Ciena Corporation
Press Contact:
Nicole Anderson, 410-694-5786
pr@ciena.com
or
Investor Contact:
Marie Downing, 888-243-6223
ir@ciena.com
Copyright Business Wire 2008
