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Earnings reports

Corvis Lays Off

COLUMBIA, Md. -- Corvis Corporation (Nasdaq: CORV - News), a leading provider of next-generation optical networking solutions and services, today announced a business restructuring initiative that will result in annual cost savings of approximately $30 - 40 million once completed.

The company stated that the business restructuring would be completed by year-end. The company said it expects to reduce its total workforce from approximately 1,400 employees to approximately 1,200.

"As we continue to position the company for profitability by the middle of 2004, we have decided to further realign and integrate our business to better reflect the current market realities," said Dr. David Huber, Corvis Chairman and CEO. "While these steps are never easy, they are necessary for the long- term success of the company. I want to personally thank every Corvis employee who will be leaving as part of this initiative for their tremendous contribution, dedication and commitment to the company and wish them every success in the future."

The company expects to take restructuring charges associated with this initiative in its third and fourth fiscal quarters ending September 30, 2003 and December 31, 2003, respectively.

"With the steps we've announced today, we expect to reduce our quarterly operational burn by approximately $7 - $10 million per quarter," said Lynn D. Anderson, Corvis' chief financial officer and treasurer. "Given our current view of the business, we now expect to end fiscal 2003 with approximately $275 - $300 million in cash, cash equivalents and short-term investments. We will continue to look for ways to grow the business and strengthen what is one of the strongest balance sheets in the industry. A balance sheet that remains un- levered with no significant debt and a solid cash position."

The company said it would discuss additional details of this business restructuring on its next quarterly earnings conference call on October 30, 2003.

Corvis Corp.
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skeptic 12/4/2012 | 11:25:02 PM
re: Corvis Lays Off The company expects to take restructuring charges associated with this initiative in its third and fourth fiscal quarters ending September 30, 2003 and December 31, 2003, respectively.
---------------
This is all rather odd. I would have expected
them to do this earlier and to at least take
the charges all at once. This suggests that the
Q3 & Q4 financial statements may be even more
confusing than Q2.

The cuts outlined, along with the previous cuts
on the equipment side, are steps in the right
direction. But its hard to tell how big a step
it is because the extent of the losses at the
combined Corvis/Broadwing for a full quarter
is still unknown.
skeptic 12/4/2012 | 11:25:01 PM
re: Corvis Lays Off Although it is never certain, the layoff coinciding with the GIG-BE decision looks to be related.
----------
Its hard to say and I would not automatically
conclude that they are related. They already
have cut Corvis R&D way back. And the big
savings in the combined company would seem to be
the broadwing side which has nothing to do
with GIG-BE.


joe_average 12/4/2012 | 11:25:01 PM
re: Corvis Lays Off Although it is never certain, the layoff coinciding with the GIG-BE decision looks to be related.

I have had the unfortunate experience (twice) of seeing a failed bid result in layoff immediately following. This action sures smells of the same thing.

Hopefully the winners will be hiring...
madtech 12/4/2012 | 11:25:00 PM
re: Corvis Lays Off Ciena isn't one of the winners hiring, they have had two layoffs since the last Corvis cut. Last one was just two weeks ago.

For some reason I missed that article on LR....
PastTense 12/4/2012 | 11:24:59 PM
re: Corvis Lays Off Was there a layoff after losing AT&T? I'm not sure. Losing both AT&T and GIG-BE would warrant cuts of some sort.
madtech 12/4/2012 | 11:24:58 PM
re: Corvis Lays Off The end for Corvis began many years ago if you read this board. If you believed the cheerleaders of the demise they should have closed the doors before the IPO.
dc_optics 12/4/2012 | 11:24:58 PM
re: Corvis Lays Off Could this be a result of not getting the GIG-BE award from DISA? One would think if they had won the $200 million contract that they wouldn't be laying people off. Could this be the begininng of the end for Corvis?
lilgatsby 12/4/2012 | 11:24:52 PM
re: Corvis Lays Off CIII-BRW-CORV...or whatever they call themselves, has no customers, has no prospects, has not sold anything in nearly a year and has no respect in the industry.

Call them dead, but don't you have to be alive in order to die. One of the few remaining IPO-born shams is going the way of the others, out. It's about time this joke faded away. Good luck to them in the service provider market, can't do any worse than they did as a hardware vendor...

True,
lg
BobbyMax 12/4/2012 | 11:24:47 PM
re: Corvis Lays Off Corvis a very long history of mismanagement. In the intial phases, with almost no product plan, Punditi and his friends made a router product which AT&T agreed to buy. Inspite of AT&tT generousity, the Corvis router never performed. In spite of being a very weak company it went public, which it should not have. It is not known how long the company would stay in business.
whyiswhy 12/4/2012 | 11:24:47 PM
re: Corvis Lays Off The writing is all over the wall: Huber is killing Corvis to fuel Broadwing. Corvis is for all intents and purposes almost worthless without GIGBE or AT&T. He saw this coming, and pumped it as long as he could. Actually he is not done yeat. There is another round of agency fiber coming. That will get another media pump-fest and postings from Sparxe, Dave 77777 and the rest.

Invest if you love losing money, or get out now.

JMHO

-Why

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