Skip to content
AnalystLens

CIENA CORP 8-K Report, Exit or Disposal Costs (Mar 21, 2006)

Reports
Financial Events
Filing Date
Filed March 21, 2006
Period End
March 21, 2006
Security
CIEN
In the record · 2016–202610-K1010-Q338-K105

CIEN filed 10 annual reports (10-K), 33 quarterly reports (10-Q) and 105 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Apr ’16Apr ’16
  2. FY2018 annual report10-K · Dec ’18Dec ’18
  3. Leadership change8-K · Apr ’21Apr ’21
  4. Leadership change8-K · Jun ’25Jun ’25

01—Abstract

Summary

Summary of the 8-K filed March 21, 2006. Cited figures are marked; the original filing is the authoritative source.

CIENA CORP (CIEN) filed an 8-K on March 21, 2006, reporting its decision to close its Shrewsbury, New Jersey facility by April 29, 2006, the end of its second fiscal quarter.

This closure is part of a broader, ongoing initiative to streamline operations, reduce costs, and improve efficiency by consolidating research and development resources and aligning its workforce and facilities with current business opportunities. The company anticipates incurring restructuring charges between $3.8 milliona and $8.1 million, primarily related to severance, relocation costs for approximately 62 affected employees (with an additional 27 offered relocation), and facility lease obligations. These charges are expected to be paid out and recognized mostly in the second fiscal quarter of 2006, with some extending into the third and fourth quarters.

02—Key points

Key Highlights

  1. Ciena Corporation is closing its Shrewsbury, New Jersey facility by April 29, 2006.
  2. The closure is part of a strategic effort to reduce operating costs and improve efficiency.
  3. Approximately 62 employees will be impacted by this headcount reduction.
  4. 27 additional employees have been offered relocation to other Ciena facilities.
  5. The company expects total restructuring charges to range from $3.8 million to $8.1 million.
  6. These charges include severance, relocation, and facility lease costs.
  7. Cash expenditures related to these charges are expected to occur primarily in Q2 and Q3 of fiscal year 2006.

03—Questions

Frequently Asked Questions

  1. Why is Ciena closing its Shrewsbury facility?

    Ciena is closing the Shrewsbury facility as part of an ongoing effort to align its workforce, facilities, and operating costs with business opportunities, focusing on consolidating and restructuring research and development resources to reduce expenses and improve efficiency.

  2. What is the expected financial impact of this closure?

    Ciena expects to record restructuring charges between $3.8 million and $8.1 million. These charges encompass severance, relocation costs for employees, and remaining lease payments for the facility. All of these are expected to result in future cash expenditures.

  3. How many employees are affected by this closure?

    The closure is expected to result in a headcount reduction of 62 employees, primarily in research and development. This number could increase if any of the 27 additional employees offered relocation do not accept.

  4. When will the financial charges related to the closure be incurred and paid?

    Severance and other employee costs are expected to be paid and incurred primarily during the second fiscal quarter of 2006, with some occurring in the third and fourth quarters. Facility costs are expected to be incurred in the second fiscal quarter of 2006 and paid during the second and third fiscal quarters of 2006.

04—Continue

← View all 8-K filings