In the Region Ciena supplying optical equipment to...


November 17, 2001

In the Region

Ciena supplying optical equipment to Tokyo company

Fiber-optic equipment maker Ciena Corp. said yesterday that it is supplying optical equipment to eAccess Ltd., a Tokyo-based communications company.

eAccess will use Ciena's MetroDirector K2 optical switching equipment in a network between Osaka and Tokyo, Ciena said. The initial order is for more than 100 units of the product, the first major deployment of the K2 equipment.

Ciena acquired the K2 product when it bought Cyras Systems Inc. in a $1.1 billion deal in March. When Ciena announced the Cyras deal in December, it was valued at $2 billion in stock and assumed debt. This week Ciena said it would take a $1.7 billion noncash charge to reduce good will in connection with the Cyras acquisition.

Gene Logic Inc. predicts it'll take in more, lose less

Gene Logic Inc. said yesterday that it expects to narrow its earnings loss in 2002 and expects higher revenue as it controls costs and adds more customers.

The Gaithersburg provider of genomic information said it expects revenue to rise 52 percent to $65 million next year as more pharmaceutical and biotechnology companies use its GeneExpress product line.

Gene Logic said it expects a 74 cent loss in 2002, compared with the average analyst estimate of a 92-cent loss.

Former Rite Aid executive is denied in fraud case

A federal judge in Philadelphia has dismissed allegations by a former Rite Aid Corp. executive that the drugstore chain misled him about its financial health so he would accept a job offer three years ago.

U.S. District Judge Mary A. McLaughlin dismissed fraud charges filed last year by lawyer and lobbyist William A.K. Titelman. McLaughlin ruled that Titelman had not insisted on including in his employment contract the bonuses that the company allegedly promised.

Titelman was hired in 1999 by then-CEO Martin L. Grass, but later fired by new management after accounting and other financial woes sent the company's stock tumbling.

9 new clients signed by Smith Content

Smith Content, the Baltimore-based division of Macdonald-Starling LLC that writes content for Web sites, has signed nine new clients in the past two months, the company said.

Among the clients are DataLink Interactive, and the Abell Foundation, Smith Content said.


Warnaco fires CEO, may offer part or all of company to buyers

Warnaco Group Inc. yesterday fired long-time chief and fashion-industry force Linda Wachner as CEO - without severance pay - and the maker of bras, swimsuits and jeans, in bankruptcy since June, may put itself up for sale.

The clothing conglomerate said it has identified six business units for likely sale and said it is looking at all alternatives, ranging from a stand-alone restructuring to the sale of more assets or possibly the entire company. Warnaco said it has $2.4 billion in debt and the same amount in assets.

Tony Alvarez, a turnaround specialist who was brought in as chief restructuring officer in May, replaced Wachner as chief executive. Stuart Buchalter, a director since February 2000, is now chairman.

Controller, under fire, is reassigned at Xerox

Xerox Corp. has reassigned its controller, who was responsible for the company's accounting practices that are now under investigation by the Securities and Exchange Commission.

The move means that Gregory M. Tayler will no longer sign off on filings with the SEC. Gary R. Kabureck, the company's assistant controller, will take over those responsibilities, Xerox said.

This column was compiled from reports by Sun staff writers, the Associated Press, Bloomberg News and Reuters.

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