- The Washington Times - Wednesday, February 6, 2002

Optical-networking-equipment maker Ciena Corp. announced yesterday it will cut 400 jobs, or 12 percent of its work force, and said it expects its first-quarter loss to be nearly double what analysts had been expecting.
Excluding charges, Linthicum, Md.-based Ciena said it expected to lose between 19 and 22 cents a share. Analysts surveyed by Thomson Financial/First Call had predicted Ciena would lose 11 cents a share in the first quarter.
Second-quarter revenue also is expected to be flat or down compared with the first quarter, said Gary Smith, Ciena's CEO.
As a result, the company said it was cutting 12 percent of its work force and closing its Marlborough, Mass., research and development facility. The cuts follow an announcement in November, when Ciena said it was cutting 380 jobs.
"The results are disappointing, but they've been keeping with what's been going on in the industry," said Joe Gladue, an equity analyst for the Chapman Co. "There is a number of large carriers that have declared bankruptcy or are in dire straits. Demand will continue to drive up, and at some point carriers will have to add to their networks. [Ciena] will be on one of the best positions when spending resumes."
Investors sent Ciena's stock down 54 cents to $9.58 in trading yesterday on the Nasdaq Stock Market.
Mr. Smith said first-quarter revenues were lower than expected because several major customers "made substantial changes in their deployment plans resulting in significant reductions in the amounts of equipment they had previously indicated they anticipated purchasing from us."
Ciena also said it will take a second-quarter restructuring charge of up to $11 million because of the job cuts, lease terminations and the write-down of certain property and equipment improvements.
Other local companies reporting earnings yesterday:
AES Corp. of Arlington announced net income for its fourth quarter ended Dec. 31 declined more than 81 percent to $44 million (8 cents per share) compared with net income of $224 million (43 cents) a year earlier.
Telecommunications Systems Inc., an Annapolis architect of wireless networks, reported a loss of $6.9 million (24 cents) for its fourth quarter ended Dec. 31 compared with a loss of $7.7 million (28 cents) during the like quarter of 2000.

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