Mixed News Turns Out To Be Good For Ciena.(Ciena Corp will be acquired by Tellabs Inc) (Company Business and Marketing)

In a classic good news/bad news scenario, Ciena Corp. last week disclosed that it is being purchased for $7.1 billion by Tellabs Inc., but it still has problems with AT&T, one of its major customers.

The company disclosed in its recently filed 10Q quarterly financial statement that it has had "unpredictable delays in development" of element-management software for a 16-channel dense wave division multiplexer that AT&T is testing.

The delays, which did not dissuade Tellabs from moving forward with its purchase plans, have been caused by "sophisticated and complex software requirements" and the fact that the hardware is a prototype, Ciena said. The software is custom-designed for the MultiWave Sentry DWDM under a five-year contract that was announced last year and is not used on any of Ciena's standard products. …

Log in to your account to read this article – and millions more.