Disclosure Insight Changes Rating on CIENA Corp.
D.I. Reports changes its rating from Medium Risk – Positive Bias to Medium Risk – Negative Bias on CIENA Corp. (NASDAQ: CIEN) due to increased litigation relating patents.
According to D.I., “Concentrated revenue; patent litigation; acquisition activity; and one-time items support our opinion of a Medium Risk - Negative Bias rating on CIEN. Two unnamed customers accounted for 15.7% and 10.2% of fiscal 9M11 total revenue. AT&T accounted for 21.6% of FY10 revenue. CIEN is involved in a lawsuit filed by Graywire alleging that its products infringe on a patent relating to an identifier system and components for optical assemblies. The case was stayed pending a re-examination by the U.S. Patent and Trademark Office (PTO). An initial PTO ruling went in favor of Graywire, but CIEN has appealed. The company was also named as a defendant in a lawsuit filed by Cheetah Omni alleging that its products infringe on patents relating to certain reconfigurable optical add-drop multiplexer technologies."
CIEN closed at $13.59 on Tuesday, up 2.8 percent.
