| Ciena Corporation | |||
| Ticker: | CIEN | 8530 Corridor Road | |
| Exchange: | NASDAQ-National Market | Savage, MD 20763 | |
| Industry: | Manufacturing (SIC Code 3661) | (301) 317-5800 | |
| Type of Shares: | Common Shares | Filing Date: | 12/12/96 | |
| U.S. Shares: | 4,000,000 | Offer Date: | 2/7/97 | |
| Non-U.S. Shares: | 1,000,000 | Filing Range: | $22.00 - $23.00 | |
| Primary Shares: | 5,000,000 | Offer Price: | $23.00 | |
| Secondary Shares: | 0 | Gross Spread: | $1.61 | |
| Offering Amount: | $112,500,000 | Selling: | $0.95 | |
| Expenses: | $1,100,000 | Reallowance: | $0.10 | |
| Shares Out After: | 93,007,325 |
| Manager | Tier | Phone |
| Goldman, Sachs & Co. | Lead Manager | (212) 902-5959 |
| Alex. Brown & Sons Incorporated | Co-manager | (410) 895-2700 |
| Wessels, Arnold & Henderson | Co-manager | (612) 373-6105 |
| William K. Woodruff & Company | Co-manager | (214) 987-2990 |
| Issuer's Law Firm: | Hogan & Hartson |
| Bank's Law Firm: | Hale and Dorr |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 10/31/96 | 10/31/96 | ||||
| Revenue: | $54.84 | Assets: | $67.30 | ||
| Net Income: | $14.72 | Curr Assets: | |||
| EPS: | $0.15 | Liabilities: | $21.93 | ||
| Prior EPS: | Curr Liabilities: | ||||
| Cash Flow/Oper: | Equity: | $45.37 | |||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company designs, manufactures and sells dense wavelength division multiplexing systems for long distance fiber optic telecommunications networks. The company's DWDM solution, the MultiWave 1600 system, alleviates capacity, or bandwidth, constraints in high traffic fiberoptic routes without requiring the installation of new fiber. In addition, the MultiWave 1600 system enables flexible provisioning of additional bandwidth without requiring an upgrade of existing network transmission equipment. The MultiWave 1600 system can increase the carrying capacity of a single optical fiber 16 fold by allowing simultaneous transmission of up to 16 optical channels per fiber. The company believes it is a worldwide market leader in field deployment of open architecture DWDM systems. The company's MultiWave 1600 system was introduced into field trials in the long distance network of Sprint Corporation in May 1996 and LDDS WorldCom in August 1996. |
| Competition |
| The market for increased bandwidth is highly competitive, and the company expects the level of competition to increase in the future. In addition, competition in the telecommunications equipment industry generally is intense, particularly in that portion of the industry devoted to delivering higher and more cost effective bandwidth throughout the telecommunications network. However, the company believes that its position as a leading supplier of open architecture DWDM systems and the field-tested design and technology of its product give it a current competitive advantage. |
| Business Plan |
| The company's strategy is to maintain and build upon its market leadership in the development of DWDM systems. Important elements of the company's strategy include: 1) maintain leadership in deployment of DWDM in long distance networks; 2) continue to emphasize technical support and customer service; 3) continue to develop world class manufacturing capability; 4) expand sales and marketing efforts; 5) leverage core competencies in fiberoptic communications. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for general corporate purposes. |