MEN at Work for Ciena

Ciena Corp. (NYSE: CIEN) CEO Gary Smith must be very glad today that he won the auction to buy the former Nortel Networks Ltd. Metro Ethernet Networks (MEN) business. (See Ciena Beats NSN to Buy Nortel's MEN and Ciena/Nortel Product Plans Revealed.)

Ciena today reported third-quarter revenues of almost $390 million, with the MEN line of business generating nearly $222 million of that total. (See Ciena Reports Q3.)

That means the legacy Ciena business lines stumped up just $168 million in revenues, way down from the second quarter's $200 million. (See Ciena's Q2 Let Down by MEN.)

With spending by carriers in the US (Ciena's key market) widely regarded to be recovering, the sequential dip might be something of a worry, not only for Smith and his team, but for the rest of the vendor community as well.

On the plus side, of course, there's clearly market demand for the MEN optical platforms.

— Ray Le Maistre, International Managing Editor, Light Reading

waverunner 12/5/2012 | 4:24:16 PM
re: MEN at Work for Ciena

MEN (Nortel) 2009: $295M; MEN (Ciena) 2010:$222, a 25% drop in Q3 revenue YOY. So how is this good? Was not 2010 going to be the recovery year?

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