Summary
Ciena Corporation (CIEN) filed an 8-K on March 5, 2009, primarily to report its first fiscal quarter 2009 financial results and to announce a significant restructuring plan. The company is proactively addressing difficult macroeconomic conditions by reducing its global workforce by approximately 9% (around 200 employees) and closing its Acton, Massachusetts research and development facility. These actions are expected to be substantially completed by the third fiscal quarter of 2009.
Key Highlights
- 1Ciena Corporation announced its Q1 2009 financial results on March 5, 2009, via press release.
- 2The company is undertaking a restructuring plan due to challenging macroeconomic conditions.
- 3Approximately 200 employees, representing 9% of the global workforce, will be laid off.
- 4The Acton, Massachusetts R&D facility will be closed on or about June 30, 2009.
- 5Total restructuring charges are estimated to range from $5.0 million to $8.0 million, all involving future cash expenditures.
- 6Severance and other employee-related costs are estimated between $3.0 million and $4.0 million.
- 7Facilities-related costs, mainly for lease obligations at the Acton facility, are estimated between $2.0 million and $4.0 million.
Frequently Asked Questions
Ciena is implementing these restructuring actions to reduce operating expenses and better align its workforce, facilities, and costs with current market and business opportunities, in response to ongoing difficult macroeconomic conditions.
Ciena anticipates total restructuring charges to be between $5.0 million and $8.0 million. This includes $3.0 million to $4.0 million for severance and employee-related costs, and $2.0 million to $4.0 million for facilities-related costs, such as lease payments for the closed Acton facility. All these charges are expected to result in future cash expenditures.
The headcount reductions are expected to be completed during Ciena's third fiscal quarter of 2009. The Acton, Massachusetts facility closure is expected on or about June 30, 2009. Employee-related costs are expected to be paid primarily in Q2 and Q3 2009, with facilities costs incurred in Q3 2009 and onward as lease obligations become due.
This 8-K filing (Item 2.02) states that Ciena issued a press release on March 5, 2009, announcing its Q1 2009 financial results. The text of that press release is furnished as Exhibit 99.1 to this report, but the 8-K itself does not contain the detailed financial statements. Investors should refer to Exhibit 99.1 for the Q1 2009 results.