936395--12/23/2008--CIENA

related topics

{system, service, information}

{customer, product, revenue}

{product, market, service}

{operation, international, foreign}

{regulation, government, change}

{property, intellectual, protect}

{loan, real, estate}

{personnel, key, retain}

{tax, income, asset}

{control, financial, internal}

{debt, indebtedness, cash}

{stock, price, operating}

{cost, operation, labor}

{competitive, industry, competition}

{acquisition, growth, future}

Our revenue and operating results can fluctuate unpredictably from quarter to quarter. We face intense competition that could hurt our sales and results of operations. Investment of research and development resources in technologies for which there is not a matching market opportunity, or failure to sufficiently or timely invest in technologies for which there is market demand, would adversely affect our revenue and profitability. We may be required to write off significant amounts of inventory as a result of our inventory purchase practices, the convergence of our product lines or unfavorable macroeconomic or industry conditions. We may be required to write down goodwill and long-lived assets and these impairment charges would adversely affect our operating results. Network equipment sales to large communications service providers often involve lengthy sales cycles and protracted contract negotiations and may require us to assume terms or conditions that negatively affect our pricing, payment terms and the timing of revenue recognition. Product performance problems could damage our business reputation and negatively affect our results of operations. We may not be successful in selling our products into new markets and developing and managing new sales channels. We may experience delays in the development of our products that may negatively affect our competitive position and business. Our reliance upon third party manufacturers exposes us to risks that could negatively affect our business and operations. Difficulties with third party component suppliers, including sole and limited source suppliers, could increase our costs and harm our business and customer relationships. Our failure to manage effectively our relationships with third party service partners could adversely impact our financial results and relationship with customers. We may incur significant costs as a result of our efforts to protect and enforce our intellectual property rights or respond to claims of infringement from others. Our international operations could expose us to additional risks and result in increased operating expense. Our use and reliance upon development resources in India may expose us to unanticipated costs or liabilities. We may be exposed to unanticipated risks and additional obligations in connection with our resale of complementary products or technology of other companies. Our exposure to the credit risks of our customers and resellers may make it difficult to collect receivables and could adversely affect our revenue and operating results. Restructuring activities could disrupt our business and affect our results of operations. If we are unable to attract and retain qualified personnel, we may be unable to manage our business effectively. We may be adversely affected by fluctuations in currency exchange rates. Our products incorporate software and other technology under license from third parties and our business would be adversely affected if this technology was no longer available to us on commercially reasonable terms. Our business is dependent upon the proper functioning of our internal business processes and information systems and modifications may disrupt our business, operating processes and internal controls. Strategic acquisitions and investments may expose us to increased costs and unexpected liabilities. Changes in government regulation affecting the communications industry and the businesses of our customers could harm our prospects and operating results. Governmental regulations affecting the import or export of products, and environmental regulations relating to our products, could negatively affect our revenues. The investment of our substantial cash balance and our investments in marketable debt securities are subject to risks which may cause losses and affect the liquidity of these investments. Failure to maintain effective internal controls over financial reporting could have a material adverse effect on our business, operating results and stock price. Obligations associated with our outstanding indebtedness on our convertible notes may adversely affect our business.

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936395--12/23/2008--CIENA_CORP