Ciena

Ciena Corporation
Public
Traded as NYSE: CIEN
S&P 400 Component
Industry Telecommunications equipment
Founded 1992 (1992)
Headquarters Hanover, Maryland, United States
Key people
 Patrick Nettles
(executive chairman)
Gary Smith
(president and CEO)
Products Networking systems and products
Revenue $2.26 billion USD
$272.6 million USD
Number of employees
 5600
Website www.ciena.com

Ciena Corporation is a United States-based global supplier of telecommunications networking equipment, software, and services. The company was founded in 1992[1] and is headquartered in Hanover, Maryland.[2]

History

Ciena was founded in 1992 by David Huber and Kevin Kimberlin.[3][4] In 1994, Dallas, Texas-based venture capital firm Sevin Rosen invested $3.3 million in Ciena's Series A Venture financing.[5]

In late 1994, during the transition of the first high-speed optical backbone from public sector control of the National Science Foundation to private companies, Ciena began working with Sprint – an earlier carrier of Internet traffic – to develop "high-capacity fiber optic transmission systems called dense wave division multiplexing (DWDM)." [6] The outcome of their effort was the first commercial dense wave division multiplexing system. With it, the capacity increased "Sprint's nationwide, all-digital fiber-optic network by a stunning 1,600 percent."[7] Sprint therefore became the world's largest carrier of Internet traffic. With success from Sprint and others, Ciena's "first-year sales were the highest ever recorded by a start-up."[8]

In February 1997 Ciena pulled off the biggest initial public offering of a startup company ever, with a first-day valuation of $3.4 billion.[5] Subsequently, Goldman Sachs, in a research note, commented on the records set by Ciena: "1) steepest revenue ramp for any company in history, 2) most profitable company ever in its first year of product shipments, and 3) largest market capitalization of any new IPO."[9] By 2001, Ciena had achieved annual revenues of $1.6 billion and a market capitalization of nearly $30 billion.[10]

Despite setbacks along the way, Ciena continued to grow over the next few years, by both introducing new products and by acquiring companies such as Lightera (optical switches) and Omnia (local access equipment). With a broader product line, Ciena's customer base had grown from a small handful to 27 companies as network operators continued building their systems.[11]

In 2000, Ciena announced the MultiWave Metro optical transport solution, which allowed metropolitan area networks to deliver particular frequencies to individual customer premises. By June 2000, Ciena's stock had soared to $120 per share, giving it a market capitalization exceeding $30 billion. Sales of the company's new line of products prompted the investor optimism, though some analysts were beginning to wonder whether the U.S. fiber optic network had been overbuilt. The customer list continued to grow as it approached 50 names.[11]

Market downturn and diversification

During 2001, the telecommunications market went through a severe downturn, and the segment that included Ciena's optical networking equipment fell by nearly 2/3 to $9.1 billion and in 2002, Ciena's revenues had declined 80% to $361 million.[12] To address the firm's challenges, Gary Smith, previously president and head of sales, was named CEO in May 2001, and Patrick Nettles, CEO since 1994, became executive chairman.

Over the next few years, Ciena re-grouped by expanding its product portfolio to include a broader range of advanced networking solutions, including optical switching, new generation hybrid gear and Ethernet technologies.

Ciena accomplished its diversification effort with internal development as well as a series of acquisitions and strategic partnerships. By 2004 Ciena had purchased a total of 11 firms (half prior to the downturn) with an aggregate value of over $3.3 billion.[13] With a broader range of offerings, Ciena was able both to offer its existing customers a wider range of solutions as well as compete for new customers in additional segments and regions.

Ciena's acquisition history

Company acquiredClosed dateApproximate value
US$ million
DonRiver[14] Oct 1, 2018
Packet Design[15] Jul 2, 2018
TeraXion Feb 1, 2016 32
CyanAug 3, 2015400
Nortel Metro Ethernet NetworksMar 19, 2010774
World Wide PacketsMar 3, 2008296
Internet PhotonicsMay 3, 2004100
Catena NetworksMay 3, 2004314
AkaraSep 3, 200346
WaveSmith NetworksJune 13, 2003178
ONI SystemsJune 21, 2002398
CyrasMar 29, 20011,100
Omnia CommunicationsJuly 1, 1999474
Lightera NetworksMar 31, 1999464
TerabitApr 22, 199812
Alta TelecomFeb 19, 199852
AstraComDec 17, 199713

See also

References

  1. ↑ "History of Ciena" (PDF).
  2. ↑ "Ciena Corp Moving HQ to Station Ridge in Hanover". citybizlist Baltimore. citybizlist. Archived from the original on 28 June 2013.
  3. ↑ Anders, George (1998-06-05). "With Ciena, Investors Hit a Jackpot That's One for the Record Books". Wall Street Journal. ISSN 0099-9660. Retrieved 2017-11-13.
  4. ↑ Hecht, Jeff (October 2016). "Boom, Bubble, Bust: The Fiber Optic Mania". Optics and Photonics News: Cover story.
  5. 1 2 Mack, Toni (October 6, 1997). "Communications: the Next Wave". Forbes.
  6. ↑ https://aresu.dsi.cnrs.fr/IMG/pdf/dwdm_ciena.pdf
  7. ↑ "Newsroom - Press Releases - Ciena". www.ciena.com. Retrieved 25 May 2017.
  8. ↑ "Ciena Corp. built on dreams, risks Decision: Shareholders will vote Friday on the sale of the Linthicum telecommunications company, one of the most successful U.S. start-ups". Retrieved 25 May 2017.
  9. ↑ Henry, Mary (July 30, 1997) Ciena Corporation – Breaking the Bandwidth Barrier, Goldman Sachs U.S. Research Report,
  10. ↑ "Ciena - A network strategy and technology company - Ciena". ciena.com. Retrieved 25 May 2017.
  11. 1 2 "History of CIENA Corporation – FundingUniverse". www.fundinguniverse.com. Retrieved 25 May 2017.
  12. ↑ History of Ciena, Ciena Corp., Retrieved Nov. 1, 2013 from Ciena website
  13. ↑ Moritz, Scott (March 7, 2008) Ciena's Secret Weapon: Diversification, Forbes Magazine, Retrieved, Nov. 13, 2013
  14. ↑ "Ciena Completes Acquisition of DonRiver - Ciena". Retrieved 2018-10-01.
  15. ↑ "Ciena Completes Acquisition of Packet Design - Ciena". Retrieved 2018-10-01.

This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.