EXHIBIT 99.1
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Press Contact:
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Nicole Anderson
Ciena Corporation
(410) 694–5786
pr@ciena.com |
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Investor Contact:
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Marie Downing
Ciena Corporation
(888) 243-6223
ir@ciena.com |
FOR IMMEDIATE RELEASE
Ciena expects $5.0 to $6.0 million Q3 GAAP loss related to commercial paper
investments
GAAP loss will not affect Ciena’s income from operations
LINTHICUM, Md. – July 18, 2008 – Ciena® Corporation (NASDAQ: CIEN) today announced that
it expects to recognize a GAAP loss totaling between $5.0 million and $6.0 million in the third
quarter of fiscal 2008, relating to commercial paper investments in Rhinebridge LLC and SIV
Portfolio plc (formerly known as Cheyne Finance plc). Ciena had previously recognized a loss of
$13.0 million related to its investment in these two structured investment vehicles (SIVs), each of
which entered into receivership and failed to make payment at maturity during the fourth quarter of
Ciena’s fiscal 2007.
At April 30, 2008, Ciena’s commercial paper issued by these SIVs had a carrying value of $25.6
million. The estimated GAAP loss for the third quarter is based upon valuation information provided
by Ciena’s investment manager on July 16, 2008 in connection with the restructuring of these SIVs.
This estimated GAAP loss will not affect Ciena’s income from operations for the third quarter of
fiscal 2008. As stated previously, Ciena believes that its SIV-related exposure is limited to these
two investments.
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About Ciena
Ciena specializes in network transition. We provide the flexible platforms, intelligent software
and professional services to build converged networks for enhanced services and applications. With
a growing global presence, Ciena leverages its heritage of practical innovation to deliver maximum
performance and economic value in communications networks worldwide. For more information, visit
www.ciena.com.
Note to Ciena Investors
This press release contains certain forward-looking statements based on current expectations,
forecasts and assumptions that involve risks and uncertainties. These statements are based on
information available to the Company as of the date hereof; and Ciena’s actual results could differ
materially from those stated or implied, due to
risks and uncertainties associated with its business, which include the risk factors disclosed in
its Report on Form 10-Q filed with the Securities and Exchange Commission on June 6, 2008.
Forward-looking statements include statements regarding Ciena’s expectations, beliefs, intentions
or strategies regarding the future and can be identified by forward-looking words such as
“anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will,” and
“would” or similar words. Forward-looking statements in this release include the statements that
Ciena “expects to recognize a GAAP loss totaling between $5.0 million and $6.0 million in the third
quarter of fiscal 2008,” “this estimated GAAP loss will not affect Ciena’s income from operations
for the third quarter of fiscal 2008” and “Ciena believes that its SIV-related exposure is limited
to these two investments.” Ciena assumes no obligation to update the information included in this
press release, whether as a result of new information, future events or otherwise.