UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
ONI Systems Corp.
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(Name of Issuer)
Common Stock, $.0001 Par Value Per Share
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(Title of Class of Securities)
68273F103
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(CUSIP Number)
February 17, 2002
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(Date of Event Which Requires Filing of This Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box [ ].
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The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
SEC 1746 (12-91)
CUSIP NO. 68273F103 Page 2 of 9
SCHEDULE 13D
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
CIENA Corporation
I.R.S. Identification No.: 23-2725311
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
(See Item 5 below.)
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
OO (See Item 3 below.)
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) [ ]
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6 CITIZENSHIP OR PLACE OR ORGANIZATION
State of Delaware
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7 SOLE VOTING POWER
-0-
NUMBER OF ----------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY 16,868,008
OWNED BY ----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING -0-
PERSON ----------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
-0-
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
16,868,008
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
11.9 %
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14 TYPE OF REPORTING PERSON
CO
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CUSIP NO. 68273F103 Page 3 of 9
ITEM 1. SECURITY AND ISSUER.
This Schedule 13D relates to the shares of common stock, par value
$0.0001 per share ("ONI Common Stock"), of ONI Systems Corp., a
Delaware corporation ("ONI"). The principal executive offices of ONI
are located at 5965 Silver Creek Valley Road, San Jose, California
95138.
ITEM 2. IDENTITY AND BACKGROUND.
(a) NAME, PLACE OF ORGANIZATION, PRINCIPAL BUSINESS:
This Schedule 13D is filed by CIENA Corporation, a corporation
organized under the laws of the State of Delaware ("CIENA").
CIENA Corporation's market-leading intelligent optical
networking systems form the core for the new era of networks and
services worldwide. CIENA's LightWorks(TM) architecture enables
next-generation optical services and changes the fundamental
economics of service-provider networks by simplifying the
network and reducing the cost to operate it.
(b) ADDRESS OF PRINCIPAL BUSINESS AND PRINCIPAL OFFICE:
The address of the principal business and principal executive office
of CIENA is 1201 Winterson Road, Linthicum, MD 21090-2205.
(c) INFORMATION PROVIDED PURSUANT TO INSTRUCTION C:
For information with respect to the identity and background of each
director and executive officer of CIENA, see Schedule I attached
hereto.
(d) NO CRIMINAL CONVICTIONS:
During the past five years, neither CIENA nor, to CIENA's knowledge,
any person identified in Schedule I to this Schedule 13D, has been
convicted in any criminal proceeding (excluding traffic violations or
similar misdemeanors).
(e) NO CIVIL PROCEEDINGS:
During the past five years, neither CIENA nor, to CIENA's knowledge,
any person identified in Schedule I to this Schedule 13D, has been a
party to a civil proceeding of a judicial or administrative body of
competent jurisdiction resulting in a judgment, decree or final order
enjoining future violations of or prohibiting or mandating activity
subject to federal or state securities laws or finding any violation
with respect to such laws.
CUSIP NO. 68273F103 Page 4 of 9
(f) CITIZENSHIP:
To the best of CIENA's knowledge, all persons identified in the
attached Schedule I are citizens of the United States of America.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
CIENA agreed to acquire ONI by means of a merger (the "Merger")
pursuant to the Agreement and Plan of Merger dated as of February 17,
2002 (the "Merger Agreement"), by and among CIENA and ONI, and
subject to the conditions set forth therein. As an inducement
for CIENA to enter into the Merger Agreement and in
consideration thereof, each of the directors, certain affiliates
thereof and certain officers of ONI named on Schedule II
(collectively, the "Stockholders") entered into a Stockholder
Agreement (collectively, the "Stockholder Agreements") with
CIENA. Pursuant to the Stockholder Agreements, each Stockholder
has agreed to vote the ONI Common Stock it owns in favor of the
Merger and against competing proposals, and to grant CIENA, upon
request, a proxy with respect to its ONI Common Stock. The
Stockholder Agreements cover an aggregate 16,209,925 shares of
ONI Common Stock owned by the Stockholders. In addition, the
Stockholder Agreements cover any additional shares acquired upon
exercise of options held by such Stockholders. A form of the
Stockholder Agreement is filed herewith as Exhibit 99.1 and
incorporated herein by reference.
ITEM 4. PURPOSE OF TRANSACTION.
On February 17, 2002, CIENA and ONI entered into the Merger
Agreement. Following the Merger, ONI will merged with and into
CIENA as a result of which holders of ONI Common Stock will
receive 0.7104 shares of CIENA's common stock for each share of
ONI Common Stock outstanding at the time of the Merger. The
Merger, which is expected to close in the second or third
calendar quarter of 2002, is contingent upon the fulfillment of
certain conditions in the Merger Agreement including, but not
limited to, all required regulatory approvals, and the approval
of the Merger by the stockholders of ONI and CIENA. The
Stockholder Agreements are intended to enhance the likelihood of
timely approval of the Merger by ONI's stockholders.
CUSIP NO. 68273F103 Page 5 of 9
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
(a)-(b) As of February 17, 2002, the shares subject to the Stockholder
Agreements consisted of 16,868,008 shares of ONI Common Stock,
representing approximately 11.9% of the total number of issued
and outstanding shares of ONI Common Stock on February 17, 2002.
The 16,868,008 total includes options to purchase 658,083 shares
of ONI Common Stock that are exercisable within sixty days from
the date hereof. The 16,868,008 total excludes 1,275,917 shares
subject to options held as of the date of the Stockholders
Agreements that are not exercisable within sixty days of the
date hereof.
The percentage of 11.9% is calculated based on 141,458,654 shares
of ONI Common Stock outstanding as of February 17, 2002, as
represented by ONI in the Merger Agreement.
By virtue of the Stockholder Agreements entered into with each
person identified on Schedule II, CIENA may be deemed to have
the right to acquire voting power of the shares subject thereto
because the Stockholder Agreements grant CIENA the right to
require that the Stockholder give a proxy to CIENA upon request
to vote those shares in favor of the Merger; however, CIENA is
not entitled to any other rights as a stockholder of ONI with
respect to the shares of ONI Common Stock covered by the
Stockholder Agreements. CIENA disclaims membership in any group
consisting of one or more persons listed on Schedule II and
disclaims beneficial ownership of any shares beneficially owned
by any such persons. The filing of this Schedule 13D shall not
be deemed as an admission that CIENA is the beneficial owner of
any shares owned by any persons listed on Schedule II or a
member of any group consisting of such persons.
(c) Except as described in this Schedule 13D, there have been no
transactions in the shares of ONI Common Stock effected by CIENA
or, to the best of CIENA's knowledge, any person identified in
Schedule I of this Schedule 13D, during the last sixty days.
(d) Not Applicable.
(e) Not Applicable.
CUSIP NO. 68273F103 Page 6 of 9
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER.
Except as described in this Schedule 13D and to the best of CIENA's
knowledge, there are no contracts, arrangements, understandings, or
relationships (legal or otherwise) among the persons named in Item 2
and between such persons and any person with respect to any securities
of ONI.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
Exhibit 99.1 Form of Stockholder Agreement between each of the Stockholders
and CIENA.
CUSIP NO. 68273F103 Page 7 of 9
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Date: February 20, 2002
CIENA CORPORATION
By: /s/ Russell B. Stevenson, Jr.
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Russell B. Stevenson, Jr.
Senior Vice President, General Counsel
and Secretary
CUSIP NO. 68273F103 Page 8 of 9
SCHEDULE I
A. EXECUTIVE OFFICERS AND DIRECTORS OF CIENA CORPORATION.*
Name: Principal Occupation or Employment:
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Patrick H. Nettles, Ph.D. Executive Chairman of the Board of Directors
Gary B. Smith President, Chief Executive Officer and Director
Stephen B. Alexander Senior Vice President, Chief Technology Officer
Steve W. Chaddick Senior Vice President, Systems and Technology and Chief Strategy
Officer
Joseph R. Chinnici Senior Vice President, Finance and Chief Financial Officer
Michael O. McCarthy III Senior Vice President, Worldwide Sales and Support
Russell B. Stevenson, Jr. Senior Vice President, General Counsel and Secretary
Andrew C. Petrik Vice President, Controller and Treasurer
Stephen P. Bradley, Ph.D. Director
Harvey B. Cash Director
John R. Dillon Director
Lawton W. Fitt Director
Judith M. O'Brien Director
Gerald H. Taylor Director
* Business address for each individual: c/o CIENA Corporation, 1201 Winterson
Road, Linthicum, Maryland 21090.
CUSIP NO. 68273F103 Page 9 of 9
SCHEDULE II
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Name Number of Shares of ONI Number of Options to
Common Stock Purchase ONI Common
Beneficially Owned* Stock Beneficially Owned*
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Matthew W. Bross Revocable Trust 192,460
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Matthew W. Bross 40,000
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William R. Cumpston 450,000
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Cumpston Family Trust 761,779
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William R. Cumpston 2000 GRAT 10,000
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The Cumpston Children's Trust 2,000
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Michael A. Dillon 182,142 100,000
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The Dillon Living Trust 69,103
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Robert J. Jandro 675,350 100,000
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James F. Jordan 1,502,581 40,000
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Kevin Compton 533,547 120,000
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Kleiner Perkins Caufield & Buyers VIII, L.P. 1,262,087
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KPCB VIII Founders Fund 73,081
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KPCB Information Sciences Zaibatsu Fund II 31,416
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Gregory B. Maffei 237,050 40,000
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Hugh C. Martin 5,849 550,000
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HMCM Trust 3,130,554
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Wild Crest Ventures, LLC 880,000
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Cherrystone Partners, LP 1,000,000
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Hugh C. Martin 2000 GRAT 34,836
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Martin Children's Trust 3,000
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Jon Feiber 4,593 120,000
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Feiber-Buhr Trust 201,368
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Mohr, Davidow Ventures V, L.P. 5,083,694
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George Reyes 24,000
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Rohit Sharma 267,894 350,000
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rohit Trust 65,541
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*As represented to CIENA in the Stockholder Agreements.