Ciena job cuts

[Mooney's Bay]

Catena operation escapes Ciena job cuts
By Leo Valiquette, Ottawa Business Journal Staff
Tue, Apr 20, 2004 1:00 PM EST


U.S. telecom equipment maker Ciena Corp. said Tuesday it will cut 25 per cent of its workforce over the coming year, but the Catena Networks operation in Kanata appears to have escaped the axe.

Maryland-based Ciena said the cuts, which impact 425 staff, relate to its "previously stated goal of reducing ongoing operating expenses by 10 to 20 percent in fiscal year 2004."

The operation that will take the brunt of the blow is in San Jose, Calif. Ciena said that facility will be close by the end of September and the work consolidated at Ciena's other facilities in Research Triangle Park, N.C.

Ciena said the process of shutting down the San Jose operation will have little effect on current product development.

"Though difficult, the cost savings that will result from this consolidation make it a necessary step in the process of restoring Ciena's profitability," president and CEO Gary Smith said in a statement.

"We remain committed to supporting our complete networking and service delivery solutions portfolio - one of the broadest next-generation offerings in the industry - and to providing the high quality of service and support our customers have come to expect from Ciena."

Company spokesman Aaron Graham confirmed that the restructuring will not impact the Catena operation.

Ciena announced the blockbuster $487-million stock deal for Catena in February. Graham said the acquisition is still expected to close during Ciena's third quarter, which begins in May (all figures in U.S. dollars).

Though the restructuring will not have any impact on Ottawa, Aaron could not say if the integration of Catena into the larger company will cost jobs in nation's capital. He said Ciena would not be able to comment on that until after the acquisition closes.

In February, Ciena said Catena's Ottawa operations, which employ about 250, will continue to operate under chief executive Jim Hjartarson. The operation will form Ciena's Broadband Access group.

Catena's core products are aimed at helping telecom carriers deliver Digital Subscriber Line service to their customers. DSL allows high-speed, or broadband, Internet and data services to be delivered to homes over ordinary copper lines.

In February, Hjartarson told the OBJ that he did not expect "any significant job losses here."

Ciena also announced in February the acquisition of New Jersey-based Internet Photonics, a developer of optical Ethernet gear for major cable companies. Tuesday's restructuring announcement will not effect that operation either.

Ciena said Tuesday that the closure in California should cut its costs by 10 to 20 per cent during this fiscal year by generating $60 million to $70 million in annualized cost savings. The benefit of those cost savings won't be deeply felt until the fourth quarter.

Charges associated with the closure and layoffs are expected to amount to $75 million to $85 million, spread over several quarters.

Ciena has struggled, along with its peers in the telecom equipment sector, to recover from the slump of the past several years. Job cuts, facility closures and an emphasis on new and cheaper products have become the norm in the industry.

In fiscal 2003, Ciena's revenues fell by 22 per cent, to $283.1 million. However, it was able to improve its bottom line, with its net loss for the year down to $386.5 million, or 87 cents a share, from $1.6 billion, or $4.37 a share, the year before.

In the first quarter of this fiscal year, Ciena reported a net loss of $76.7 million, or 16 cents a share, down from a loss of $107.1 million, or 25 cents, a year ago. Revenue dropped to $66.4 million from $70.5 million.

 

[lifeisfun]

最初由 Mooney's Bay 发布
Catena operation escapes Ciena job cuts
By Leo Valiquette, Ottawa Business Journal Staff
Tue, Apr 20, 2004 1:00 PM EST


U.S. telecom equipment maker Ciena Corp. said Tuesday it will cut 25 per cent of its workforce over the coming year, but the Catena Networks operation in Kanata appears to have escaped the axe.

Maryland-based Ciena said the cuts, which impact 425 staff, relate to its "previously stated goal of reducing ongoing operating expenses by 10 to 20 percent in fiscal year 2004."

The operation that will take the brunt of the blow is in San Jose, Calif. Ciena said that facility will be close by the end of September and the work consolidated at Ciena's other facilities in Research Triangle Park, N.C.

Ciena said the process of shutting down the San Jose operation will have little effect on current product development.

"Though difficult, the cost savings that will result from this consolidation make it a necessary step in the process of restoring Ciena's profitability," president and CEO Gary Smith said in a statement.

"We remain committed to supporting our complete networking and service delivery solutions portfolio - one of the broadest next-generation offerings in the industry - and to providing the high quality of service and support our customers have come to expect from Ciena."

Company spokesman Aaron Graham confirmed that the restructuring will not impact the Catena operation.

Ciena announced the blockbuster $487-million stock deal for Catena in February. Graham said the acquisition is still expected to close during Ciena's third quarter, which begins in May (all figures in U.S. dollars).

Though the restructuring will not have any impact on Ottawa, Aaron could not say if the integration of Catena into the larger company will cost jobs in nation's capital. He said Ciena would not be able to comment on that until after the acquisition closes.

In February, Ciena said Catena's Ottawa operations, which employ about 250, will continue to operate under chief executive Jim Hjartarson. The operation will form Ciena's Broadband Access group.

Catena's core products are aimed at helping telecom carriers deliver Digital Subscriber Line service to their customers. DSL allows high-speed, or broadband, Internet and data services to be delivered to homes over ordinary copper lines.

In February, Hjartarson told the OBJ that he did not expect "any significant job losses here."

Ciena also announced in February the acquisition of New Jersey-based Internet Photonics, a developer of optical Ethernet gear for major cable companies. Tuesday's restructuring announcement will not effect that operation either.

Ciena said Tuesday that the closure in California should cut its costs by 10 to 20 per cent during this fiscal year by generating $60 million to $70 million in annualized cost savings. The benefit of those cost savings won't be deeply felt until the fourth quarter.

Charges associated with the closure and layoffs are expected to amount to $75 million to $85 million, spread over several quarters.

Ciena has struggled, along with its peers in the telecom equipment sector, to recover from the slump of the past several years. Job cuts, facility closures and an emphasis on new and cheaper products have become the norm in the industry.

In fiscal 2003, Ciena's revenues fell by 22 per cent, to $283.1 million. However, it was able to improve its bottom line, with its net loss for the year down to $386.5 million, or 87 cents a share, from $1.6 billion, or $4.37 a share, the year before.

In the first quarter of this fiscal year, Ciena reported a net loss of $76.7 million, or 16 cents a share, down from a loss of $107.1 million, or 25 cents, a year ago. Revenue dropped to $66.4 million from $70.5 million.

If Ciena has to cut Catena, they don't have to buy in at the first place. They buy Catena to get into the access business to light their dark fibre. That's their bet and we will see how it goes.