Summary
This Form 8-K/A filing from Ciena Corporation (CIEN) amends a previous report filed on May 12, 2010, providing updated and estimated costs associated with restructuring activities in the Europe, Middle East, and Africa (EMEA) region. These actions are a direct consequence of Ciena's acquisition of Nortel's Metro Ethernet Networks (MEN) business on March 19, 2010, and are aimed at reducing operating expenses and aligning the company's workforce and costs with market opportunities in EMEA. Investors should note that the restructuring involves a workforce reduction of approximately 120 to 140 positions, primarily within the Global Field Organization and Global Supply Chain. The total estimated restructuring costs are projected to be between $8.0 million and $10.0 million, with completion expected in the first half of calendar year 2011. Ciena has already recorded $1.9 million in expenses related to an initial reduction of 26 employees during the third quarter of fiscal 2010. While the company anticipates these measures will improve operational efficiency, the forward-looking nature of these statements means actual results could differ due to various risk factors.
Key Highlights
- 1Amendment to a previous 8-K filing regarding EMEA restructuring costs.
- 2Restructuring follows the acquisition of Nortel's MEN business.
- 3Planned workforce reduction of 120-140 positions in the EMEA region.
- 4Estimated total restructuring costs range from $8.0 million to $10.0 million.
- 5Restructuring completion expected by the first half of calendar year 2011.
- 6Incurred $1.9 million in expenses during Q3 fiscal 2010 for initial employee reductions (26 employees).
- 7The primary goal is to reduce operating expenses and align resources with market opportunities.