CEO Today USA Awards

MARYLAND 59 www.ceotodaymagazine.com CEO Today USAAwards 2018 GARY B. SMITH President & CEO of Ciena FIRM PROFILE When Ciena incorporated in November 1992, its mission was to radically change the economics of telecommunications networks. Initially, Ciena leapfrogged innovation by pioneering Dense Wavelength Division Multiplexing (DWDM) technology as a means to split light across ber optic lines, thereby enabling the transport of greater volumes of information across communications networks. This technology breakthrough propelled Ciena to rapid success and nationwide deployments with leading service providers like Sprint and MCI WorldCom. It also led to Ciena’s initial public o ering in February 1997, during which the company achieved a market capitalization of $3.4 billion—the largest rst-day market capitalization of any venture-funded startup company to that date. Building on its early achievements in DWDM, Ciena continued to revolutionize the industry through its innovation. In 1998, Ciena’s long-haul optical transport platform enabled a service provider to transmit more than three million phone calls across a single ber pair— enough capacity at the time to carry the combined voice tra c of all major long-distance carriers. By the end of 1999, Ciena was on an impressive growth trajectory, landing deals with some of the largest service providers worldwide. In its scal 2001, Ciena achieved annual revenue of $1.6 billion and its market capitalization reached nearly $30 billion, based largely on the success of a single product line. A Market Shift In early 2001, the telecommunications industry began to experience a severe downturn. Aggressive network builds by service providers in anticipation of rapid tra c growth resulted in excess bandwidth and network overcapacity. At the same time, service providers’ business models were under threat by new competitors, emerging technologies, and intense price competition. In response, they curtailed network build-outs and dramatically reduced their capital spending. In fact, industry analysts estimate that service provider spending on optical networking equipment fell from nearly $27 billion in 2001 to $9.4 billion in 2002—an unprecedented, market-wide decline. Not surprisingly, as the industry su ered this radical and widespread contraction, Ciena’s revenue plunged— declining 80 percent to $361 million in its scal 2002. Business Evolution In light of the situation, Ciena believed it had two options. With a strong balance sheet, the company could buckle down and focus solely on cutting costs amidst the market uncertainty. Or, it could move beyond its single, point-product success as an optical network equipment vendor to become a strategic provider of advanced networking solutions. Unlike many of its competitors, Ciena took a contrarian approach and chose the latter. Though not without its risks and challenges, for the next several years Ciena executed on a strategy of balancing continued investment in its business with careful nancial management and cost control, based on the belief that it would be in a better position to capitalize on future growth opportunities. www.ciena.com ABOUT GARY B. SMITH Gary B. Smith began serving as Chief Executive Officer of Ciena in May 2001, in addition to his existing responsibilities as President and Director, positions he has held since October 2000. Prior to his current role, his positions with the Company included: Chief Operating Officer and Senior Vice President, Worldwide Sales. Mr. Smith joined Ciena in November 1997 as Vice President, International Sales. From 1995 through 1997, Mr. Smith served as Vice President of Sales and Marketing for INTELSAT. He also previously served as Vice President of Sales and Marketing for Cray Communications, Inc. Mr. Smith is a member of the President’s National Security Telecommunications Advisory Committee, and serves on the board of directors for CommVault Systems, Inc. He is a Commissioner for the Global Information Infrastructure Commission; serves on the Wake Forest University Advisory Council for the Center for Innovation, Creativity and Entrepreneurship; and, participates in initiatives with the Center for Corporate Innovation. Mr. Smith received his M.B.A. from Ashridge Management College, United Kingdom.