Ciena Corporation
From Wikipedia, the free encyclopedia
| Ciena Corporation | |
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| Type | Public (NASDAQ: CIEN) |
| Founded | 1992 |
| Headquarters | Linthicum, MD |
| Key people | Patrick H. Nettles, Chairman Gary Smith, CEO |
| Industry | Telecommunications Equipment |
| Products | Processing Systems & Products |
| Revenue | ▲$779.8 Million USD (FY 2007) |
| Net income | ▲$82.8 Million USD (FY 2007) |
| Employees | 1,797(as of Q4 2007) |
| Website | www.ciena.com |
Ciena Corporation NASDAQ: CIEN develops and markets communications network platforms and software, and offers professional services. The company's broadband access, data and optical networking platforms, software tools, and global network services support worldwide telecom and cable/MSO services providers, and enterprise and government networks.
Ciena Corporation, incorporated in Delaware in 1992, set out with the mission to radically change the economics of telecommunications networks. A technology breakthrough in DWDM, which further split light across fiber-optic lines and enabled the transport of great amounts of information across communications networks, propelled Ciena to instant success.
Leveraging its achievements in DWDM, Ciena continued to revolutionize the fields of optical transport, intelligent optical switching, and software tools for automated management and provisioning of large-scale networks. By the end of 1999, Ciena had experienced enormous growth by selling its next-generation network equipment to some of the largest carriers worldwide.
In 2001, the telecommunications market experienced a severe downturn. This market shift affected Ciena as well. Communications service providers had been aggressively building their networks in anticipation of growth, and this resulted in overcapacity. In addition, as new competitors entered the market and price competition increased, service providers reduced overall spending on their network builds, directly affecting the demand for Ciena’s products. Ciena’s revenue declined 80 percent between 2001 and 2002- from $1.6 billion to $361 million.
In light of this situation, Ciena decided to move beyond its single, point product success as a vendor of optical networking equipment to become a strategic provider of advanced networking solutions. Expanding Ciena’s product portfolio was critical to the success of this new plan. Between 2001 and 2005, Ciena made six acquisitions in deals valued at more than $2 billion, in order to increase the Company’s product portfolio and enhance product functionality through internal development. The Company also made significant strides in improving its business model, including transitioning to outsourcing 95 percent of its manufacturing efforts and expanding its sales focus to include channel partners and resellers.
In 2004, Ciena went to market with a newly defined identity as “the network specialist”. They also developed a new logo and web site to convey the distinct shift from the Ciena of the past, and further the Company’s strategic evolution
Ciena’s contrarian market strategy and continued commitment to innovation enabled the Company to grow its business back to profitability in fiscal year 2006. Today, Ciena’s balance sheet remains notably strong, and the Company continues to demonstrate steady revenue growth.
With more than 15 years of experience and a history of delivering practical innovation, Ciena’s heritage has allowed the company to develop a differentiated market approach and continuously address the areas of high-demand within the communications industry. Ciena’s proven track record of technology and market achievement will allow the company to continue to bring network value to its customers and advance business performance.
