Key Developments For Ciena Corporation
Ciena Corporation (CIEN.O) (Nasdaq)
CIENA Corporation Selected As Successful Bidder For Optical And Carrier Ethernet Assets Of Nortel`s Metro Ethernet Networks Business
CIENA Corporation announced that it has been selected as the successful bidder in the auction of substantially all of the optical networking and carrier Ethernet assets of Nortel`s Metro Ethernet Networks (MEN) business. Ciena has agreed to pay $530 million in cash and issue $239 million in aggregate principal amount of 6% Senior Convertible notes due 2017 for a total consideration of $769 million for the assets. A motion to approve Ciena as the acquirer will be heard by bankruptcy courts in the U.S. and Canada on December 2, 2009. The assets to be acquired generated approximately $1.36 billion in revenue for Nortel in 2008 and $556 million (unaudited) in the first six months of 2009. Ciena is also expected to make employment offers to at least 2,000 Nortel employees to become part of Ciena`s global team of network specialists. The transaction is expected to close in the first calendar quarter of 2010. A portion of the aggregate consideration consists of 6% senior convertible notes, to be issued to the sellers by Ciena with terms substantially similar to Ciena`s outstanding series of 2017 senior convertible notes. The notes will be senior unsecured obligations and will rank equally with all of Ciena`s other existing and future senior unsecured debt. The notes will bear interest at the rate of 6.0% per annum, payable semi-annually, commencing six months after the date of issuance, and will mature on June 15, 2017.
Cable & Wireless Panama Selects CIENA Corporation For Nationwide Backbone Network
CIENA Corporation announced that Cable & Wireless Panama has upgraded its nationwide backbone network using the family of CN 4200 FlexSelect Advanced Services Platforms. The new network provides efficient transport for a variety of TDM and transparent Ethernet services using advanced Optical Transport Network (OTN) and software-programmable port technologies that maximize the operator's flexibility for offering multiple services to its residential and enterprise customers.
CIENA Corporation Announces New Ethernet Service Delivery Solutions
CIENA Corporation announced an expansion of its Carrier Ethernet Service Delivery (CESD) portfolio, including multiple new service delivery and aggregation switches, which leverage a common service-aware operating system and unified Ethernet management software. Ciena`s newest Carrier Ethernet Service Delivery platforms collectively address a comprehensive set of network and service requirements with wire-speed Layer 2 switching, 10 Gigabit Ethernet (10 GbE) subscriber ports on a customer premises device, and flexible deployment options, operating in either indoor or unconditioned outdoor environments.
CIENA Corporation Issues Q2 2009 Charge Guidance
CIENA Corporation announced that for the second quarter of 2009, it expects to record a non-cash charge of approximately $456 million for impairment of goodwill. This non-cash charge does not impact the Company's normal business operations nor will it result in any current or future cash expense.
CIENA Corporation Helps Korea Exchange Increase Bandwidth Efficiency for Mission-Critical Trading Applications
CIENA Corporation announced that the Korea Exchange (KRX), a capital market in Northeast Asia, has deployed Ciena`s optical service delivery platforms as part of its data center consolidation efforts. The solutions provide high-performance connectivity in KRX`s data center architecture to ensure the delivery of time-sensitive applications and reliable business continuity and disaster recovery (BC/DR) services, while reducing overall network bandwidth consumption.
