Summary
Ciena Corporation (CIEN) has announced the settlement of a patent-related litigation with Northrop Grumman Guidance and Electronics Company (formerly Litton Systems, Inc.). This settlement, effective January 31, 2008, resolves all claims related to the lawsuit pending in the United States District Court for the Central District of California. Ciena has made a one-time payment of $7.7 million to finalize this matter. The financial impact of this settlement will be recognized in Ciena's first quarter of fiscal year 2008. While this represents a one-time expense, investors should note that the company has successfully concluded this legal dispute, removing a potential ongoing financial and operational uncertainty. The details of the original litigation were previously disclosed in Ciena's Form 10-K filing dated December 27, 2007.
Key Highlights
- 1Ciena Corporation settled a patent litigation with Northrop Grumman Guidance and Electronics Company.
- 2The settlement agreement was entered into on January 31, 2008.
- 3A one-time payment of $7.7 million was made to fully satisfy all claims.
- 4This payment will be recorded in Ciena's first quarter of fiscal year 2008.
- 5The litigation was pending in the United States District Court for the Central District of California.
- 6The settlement resolves all outstanding claims in the lawsuit.
- 7Prior litigation details were available in Ciena's Form 10-K filed on December 27, 2007.