Broadband Week Direct

Today's report from Web Editor Susan Rush

• Ciena Buys Cyras, Assumes Debt
• Climbing Out Of The Cellar
• Verizon Withdraws LD App
• Broadband Briefs

Ciena Buys Cyras, Assumes Debt

Ciena Corp. snatches up privately held Cyras Systems Inc. in an all-stock deal valued at $2.6 billion. The move brings the telecommunications equipment maker one step closer to its goal of being able to offer a complete fiber-optic network product package to its customers.

Under the agreement, in exchange for 27 million shares of its common stock, Ciena will acquire all outstanding shares of Cyras. The company will also assume $150 million of Cyras' debt.

"Cyras complements Ciena's existing product set by extending Ciena's reach from the core of the service provider network to the metropolitan access and switching networks," Ciena's Chairman and CEO Patrick Nettles said in a written statement.

Last March, Ciena acquired Lightera Networks Inc. and Omnia Communications in a bid to combine intelligent wavelength switching and multiservice packet/cell fiber ring access systems with its DWDM optical transport platform. The stock deals were valued at $981 million.

Following the news of its latest acquisition, Ciena's stock price tumbled 16.4 percent to $80.56 as of 12:32 p.m. EST.

Related Stories:
Ciena Gets A Boost On Wall Street, BroadbandWeek Direct, 12/8/00
Optical: Broadband's Red Hot Sector, Broadband Week, 11/00

Climbing Out Of The Cellar

Cisco Systems Inc.'s stock price rallied, if only slightly, during early morning trading, after hitting a 52-week low yesterday. The networking equipment giant's stock was up $1.22 to $44.16 as of 10:51 a.m. EST. Cisco shares have been taking it on the chin over the past five days or so, after it disclosed to the Securities and Exchange Commission it had set aside $275 million for losses in the first quarter of 2001 . In the filing, Cisco stated that its "contingency account" reserve is up from only $75 million a year earlier, partly due to the inability of many struggling telecommunications service providers to pay their bills.

Cisco set aside $14 million for "doubtful accounts" for the quarter ended Oct. 28, 2000, up from $5 million during the same period a year ago. The company also upped its provision for inventory reserves to $143 million, compared to $70 million a year earlier. Cisco says the increase in reserves is directly proportionate to its increase in business.

Related Stories:
Cisco Acquires Radiata, BroadbandWeek Direct, 11/14/00
Cisco Releases Q4 Results, BroadbandWeek Direct, 8/9/00

Verizon Withdraws LD App

It's back to the drawing board. Verizon Communications temporarily is withdrawing its application with the FCC to sell long-distance service in Massachusetts, amid criticism that the Baby Bell would not provide non-discriminatory unbundled loop access to rival DSL providers if it won approval. Verizon plans to re-file promptly.

"A re-filed application should contain verified data reflecting acceptable levels of performance, including an independent showing for loops used to provide advanced services, and sufficient information to permit competitors an adequate opportunity to respond," FCC Chairman William Kennard said in a prepared statement.

Related Stories:
Verizon's DSL Horizon, Broadband Week, 11/00
NorthPoint's Stock Tanks, BroadbandWeek Direct, 11/30/00

Broadband Briefs:

360networks and Deutsche Telekom enter a network service agreement valued at $230 million. 360networks will provide multiple 2.5 gigabit-per-second wavelengths throughout its North American networks to DT and enable DT to purchase dark fiber infrastructure and maintenance services over the next 20 years.
Aveo Inc. teams with Excite@Home and Telocity Inc. to offer broadband services through its Attune Service. Attune's interactive user-interface will assist users in determining whether or not broadband connections are available in their area.
With Congress adjourned, President Clinton reappoints Susan Ness to the Federal Communications Commission, giving Democrats a 3-2 edge. Ness will vote on the AOL-Time Warner merger, which is expected to happen soon.
Hello Nevada. New Edge Networks extends its DSL and other business-class broadband service reach into the Northern cities of Nevada, including Reno, Sparks, Sun Valley and Carson City.
In an effort to reduce costs and penetrate Asian markets, Adaptive Broadband Corp. turns to Hitachi Kokusai Electric Inc. to design and produce components for its AB-Access fixed wireless broadband equipment. Hitachi will work to open up sales channels for the equipment in Japan and other Asian markets.
Medium4.com gears up to launch its first simulated live stream (SLS) channel in early January. The streaming video channel will only be available to broadband users.
Centennial Communications Corp. acquires Com Tech International Corp. in an effort to increase its undersea fiber optic cable capacity. In a separate deal, Centennial plans to purchase Teleponce cable television company in Puerto Rico for $108 million in cash.
ClearWorks.net turns to Optibase's MGW 2000 streaming media gateway to help it distribute high-quality video- and audio-based services to residential broadband customers.