NT admitted in their releases that MEN was losing money. The question is: Why would a money loser from NT be a winner from Ciena. There are basically 3 options:
1 (least likely) - Ciena gets such better pricing on things than Nortel that the product margins will go through the roof.
2 - There is positive pullthrough of other products of each others at each others account.
Facts? If such a thing ever really existed with NT financials! Anyway, it's not like you need to go through the national archives, NT has always broken revenue and OM by segment. The last published quarterly showed an overall OM of less than 5% for MEN hardly enough to cover recurring and non-recurring operational costs.
If Gary Smith is not a liar then he is self-delusional or overly optimistic qualities certainly not prone to transparency and thus my contention with his last quote. Trust me there is plenty examples of this behavior in the public domain.
I've always maintained that what Ciena acquired in the NT transaction is a large legacy footprint and some incumbency, but NT is not what it was and Ciena regardless is still a Tier 2 supplier. They don't have the talent to follow through on this. And don't let anyone feed you that bull that they have acquired talent, cause any one worth saving at MEN has long ago been saved by AlcaLu.
The last time I saw it was when the reports around the bidding on MEN on this site were going around. There was a quarterly report and NT talked about all the units.
Absolutely!! It's as low as last year!!