<PAGE> 1
Filed by CIENA Corporation.
pursuant to Rule 425
under the Securities Act of 1933
Commission File No. 0-21969
Subject Company: Cyras Systems, Inc.
The following is the text of slides being presented in investor meetings
SLIDE:
CIENA acquires Cyras
December 19, 2000
SLIDE:
This presentation may contain
forward-looking statements.
Such statements should be
viewed in the context of the risk
factors articulated in CIENA's
most recent SEC filings.
SLIDE:
CIENA Strategy
- Provide service providers with next-generation solutions
that simplify carrier networks, thereby
- Lowering service provider capital costs
- Lower service provider operating costs
- Focus on the best economic solution
- Deliver on rapid time-to-market
- Become a strategic next-generation vendor for our
service provider customers
SLIDE:
Transaction Details
- 27 million shares (fixed)
<PAGE> 2
- Value of $2.6 billion based on closing price of CIEN on
December 18, 2000
- Purchase transaction expected close during first
calendar quarter 2001
- Accretive in 2002
SLIDE:
Deal Highlights
- Increases CIENA's already significant market opportunity
- Combination leverages Cyras' leading-edge product and
CIENA's:
- Strong CoreDirector(TM) and optical transport
presence
- Growing customer base and relationships
- Extensive sales force
- Global service and support infrastructure
SLIDE:
Cyras Details
- Headquartered in Fremont, CA
- 264 employees
- Founded in July 1998
- Founders:
- Alnoor Shivji, President & CEO
- Rafat Pirzada, Executive VP Corporate Development
and Chief Strategy Officer
- Sunil Tomar, Vice President, Engineering
- Shekhar Mandal, Vice President, Finance &
Administration and Chief Financial Officer
- $70 million in equity funding from Menlo Ventures, NEA,
Worldview, Draper Fisher Jurvetson, El Dorado Ventures,
Mustang Ventures, and ViVentures
- $150 million in convertible debt financing
SLIDE:
CIENA Revenue
Graph showing CIENA revenue on a quarterly basis:
<PAGE> 3
Q1 '99 $100.4 million
Q2 '99 $111.5 million
Q3 '99 $128.8 million
Q4 '99 $141.4 million
Q1 '00 $152 million; 8% growth over prior quarter
Q2 '00 $185.7 million; 22% growth over prior quarter
Q3 '00 $233.3 million; 26% growth over prior quarter
Q4 '00 $287.6 million; 23% growth over prior quarter
Consensus Expectations:
Q1 '01 $321.5 million
Q2 '01 $360. million
SLIDE:
CIENA Pro Forma* Net Income
Graph showing CIENA pro forma* net income on a quarterly basis
*Excludes provision for doubtful accounts, settlement of
accrued contract obligations, merger-related costs and in Q4 '00, payroll tax on
stock option exercises
Q1 '99 -$2.8 million
Q2 '99 -$1.3 million
Q3 '99 $2.5 million
Q4 '99 $4.5 million
Q1 '00 $9.2 million
Q2 '00 $18.5 million
Q3 '00 $28.2 million
Q4 '00 $41.3 million
Consensus Expectations:
Q1 '01 $44.6 million
Q2 '01 $50.3 million
SLIDE:
CIENA Customer Diversification
<PAGE> 4
Graph showing CIENA customers in the quarter and total
customers
<TABLE>
<CAPTION>
----------------------------------------------------------------------
Quarter Customers in Quarter Total Customers
----------------------------------------------------------------------
<S> <C> <C>
Q1 '99 13 18
----------------------------------------------------------------------
Q2 '99 14 19
----------------------------------------------------------------------
Q3 '99 18 22
----------------------------------------------------------------------
Q4 '99 23 29
----------------------------------------------------------------------
Q1 '00 25 34
----------------------------------------------------------------------
Q2 '00 22 35
----------------------------------------------------------------------
Q3 '00 22 37
----------------------------------------------------------------------
Q4 '00 27 42
----------------------------------------------------------------------
</TABLE>
SLIDE:
CIENA's Announced Customers
United States:
- Alltel
- BellSouth
- Broadwing (IXC)
- Cable & Wireless USA
- Digital Teleport
- Enron
- Genuity
- Intermedia
- PSINet
- Qwest
- RCN
- Sprint
- Verizon
- Williams*
- WorldCom
- XO Communications
*Announce CoreDirector trial customer
International:
- Cable & Wireless (UK)
- Completel (France)
- Crosswave (Japan)
- DDI (Japan)
- Dynegy (Austria)
<PAGE> 5
- ESAT (Ireland)
- Fibernet (UK)
- Global Crossing/Racal (UK)
- GTS (UK)
- Hansenet (Germany)
- Interoute (UK)
- Japan Telecom (Japan)
- KDD/Teleway (Japan)
- Korea Telecom (Korea)
- MobilCom AG (Germany)
- Protel (Mexico)
- Telecom Developpment (France)
- Telia (Sweden)
- WorldCom
SLIDE:
Legacy Metro Network
Diagram showing complicated structure of legacy metropolitan
edge/access networks for voice and data transmission
SLIDE:
CIENA LightWorks Network
Diagram showing the simplified structure of edge/access
networks using CIENA and Cyras equipment
SLIDE:
Product Synergy
- Extend LightWorks OS and LightWorks Services to
the edge of the network
- Smart Bandwidth provisioning
- Data-centric networking
- Adds high-density interfaces to CoreDirector
family
- DS-3
- OC-3/12
- GbE
<PAGE> 6
- Integrates into ON-Center for seamless network-
wide service management and bandwidth provisioning
SLIDE:
Product Overview
- Next Next-Generation metropolitan switching
platform
- Industry leading, fully non-blocking ASICs-
based cross-connect Matrix
- Supports full TSI and TSA (arbitrary
switching): a) tributary to tributary, b)
tributary to ring, c) ring to ring
- 768 X 768 STS-1 granularity
- Same platform supports al rates with
industry leading port density: DS1, DS3,
OC-3, OC-12, OC-48, OC-192
- Supports arbitrary concatenations
- Data-Optimized optical platform
- Same platform supports TDM, ATM, and
Ethernet simultaneously
- ATM switch cart (5Gb/s)
- 4 port Gigabit Ethernet switching card
- 16 port 10/100 Ethernet card
SLIDE:
Product Overview
- Integrated DWDM Support
- ITU Optics
- Passive OADMs (Optical Add/Drop
Multiplexing)
- Scalable up to 40 wavelengths
- Dense Architecture: 12 Universal Service Slots
- Any card, any slot
- Any service, any port software configurable
(for OC-3 and OC-12)
- 8 slots each support up to STS-48 bandwidth
- 4 slots each support up to STS-96 bandwidth
(used for OC-192)
- Multi-ring hubbing supported
- Three shelves supported in single 7 foot
rack
- Topologies and Protection Schemes Supported
- Linear, ring, mesh
- Standards-based BLSR, UPSR, APS
<PAGE> 7
SLIDE:
Competitive Product Comparison
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
CISCO 15454 (Cerent) Redback SmartEdge 800 Cyras K2
18.5H x 19W x 12D 15.8H x 17.5W x 16D 22.8H x 17.5W x 11.5D
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Chassis per bay 3 4 3
------------------------------------------------------------------------------------------------------------
Switching capacity 160-240 Gbps 144 480 Gbps
------------------------------------------------------------------------------------------------------------
Max uplink capacity* 6 12 12
------------------------------------------------------------------------------------------------------------
</TABLE>
*OC-48 equivalents
SLIDE:
Expanding Product Breadth
Chart showing CIENA's product offerings:
1. ON-Center Network and Service Management
Transport: Switching
2. CoreStream 6. CoreDirector
3. Sentry 4000 7. CoreDirector CI
4. Metro 8. K2
5. Metro One
SLIDE:
New Addressable Market Opportunity
Graph showing the North American Optical Transport Forecast:
Dollars in Billions
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
Year Metro WDM Metro SONET Metro DCS Total
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1999 $0.1 $3.2 $1.3 $4.6
-----------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 8
<TABLE>
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------
2000 0.6 4.6 2.4 7.6
-----------------------------------------------------------------------------------------------------
2001 0.9 5.1 2.6 8.6
-----------------------------------------------------------------------------------------------------
2002 1.3 5.7 2.7 9.7
-----------------------------------------------------------------------------------------------------
2003 1.8 6.1 2.7 10.6
-----------------------------------------------------------------------------------------------------
2004 2.3 6.3 2.8 11.4
-----------------------------------------------------------------------------------------------------
</TABLE>
SLIDE:
Competitive Landscape
Chart showing products and services offered by competitors:
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
Network
Optical Transport Switching Mgmnt
----------------------------------------------------------------------------------------------------------------------------
Ultra-
long Core Metro/
haul Long-haul Metro O-E-O Core Optical Edge
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CIENA YES YES YES YES in process YES YES
----------------------------------------------------------------------------------------------------------------------------
Nortel YES YES YES in process in process NO YES
----------------------------------------------------------------------------------------------------------------------------
Lucent NO YES YES NO in process in process NO
----------------------------------------------------------------------------------------------------------------------------
Sycamore in process YES in process YES in process YES YES
----------------------------------------------------------------------------------------------------------------------------
Cisco NO YES YES in process NO YES NO
----------------------------------------------------------------------------------------------------------------------------
Alcatel in process YES in process In process In process NO NO
----------------------------------------------------------------------------------------------------------------------------
ONI NO NO YES NO NO NO NO
----------------------------------------------------------------------------------------------------------------------------
Corvis YES NO NO in process in process NO NO
----------------------------------------------------------------------------------------------------------------------------
Tellium NO NO NO YES in process NO NO
----------------------------------------------------------------------------------------------------------------------------
Redback NO NO NO NO NO YES NO
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
NOTE TO INVESTORS
This filing contains certain forward-looking statements based on current
expectations, forecasts and assumptions of the Company that involve risks and
uncertainties. Forward-looking statements in this filing, including, but not
limited to CIENA's intent to account for the transaction as a purchase
<PAGE> 9
CIENA's expectation that on a pro forma basis the transaction will become
accretive during the latter half of the Company's fiscal year 2002, assuming
expected revenue and cost synergies, as well as anticipated product pricing,
CIENA's expectation that this transaction will increase CIENA's market
opportunity by leveraging Cyras' leading edge product, consensus estimate of
first and second quarter 2001 revenue and pro forma net income, CIENA's
expectation of product synergie, and CIENA's expectation of the size of the
North American Optical Transport market, CIENA's expectation that this
transaction will close in the first calendar quarter of 2001, are based on
information available to the Company as of the date hereof. The Company's
actual results could differ materially from those stated or implied in such
forward-looking statements, due to risks and uncertainties associated with the
Company's business, which include the risk factors disclosed in the Company's
Report on Form 10K filed with the Securities and Exchange Commission on
December 7, 2000. Forward looking statements include statements regarding the
Company's expectations, beliefs, intentions or strategies regarding the future
and can be identified by forward looking words such as "anticipate," "believe,"
"could," "estimate," "expect," "intend," "may," "should," "will," and "would"
or similar words. The Company assumes no obligation to update the information
included in this press release, whether as a result of new information, future
events or otherwise.
CIENA, its directors, executive officers and certain other
members of management and employees may be soliciting proxies from Cyras
stockholders. Cyras, its directors, executive officers and certain other members
of management and employees may be soliciting proxies from Cyras stockholders.
INVESTORS ARE URGED TO READ THE PROXY STATEMENT - PROSPECTUS
RELATING TO THE FOREGOING TRANSACTION TO BE FILED WITH THE SEC BECAUSE IT WILL
CONTAIN IMPORTANT INFORMATION. THE PROXY STATEMENT - PROSPECTUS AND OTHER
DOCUMENTS FILED BY CIENA WITH THE SEC MAY BE OBTAINED WHEN THEY BECOME AVAILABLE
FOR FREE AT THE SEC'S WEB SITE, WWW.SEC.GOV. THE PROXY STATEMENT-PROSPECTUS AND
THESE OTHER DOCUMENTS MAY ALSO BE OBTAINED FOR FREE FROM CIENA. REQUESTS TO
CIENA MAY BE DIRECTED TO 1201 WINTERSON ROAD, LINTHICUM, MD. 21090, ATTENTION:
INVESTOR RELATIONS.
