TLAB info? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : TLAB info?

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: JMD who wrote (3124)	8/17/1998 11:00:00 PM
From: Jerryco	of 7342

From the Cienna thread: Talk : Communications : Ciena IPO \| Previous \| ------ \| Respond \| Earnings \| Show Navigation RESEARCH ALERT - Ciena strong buy restated Reuters Story - August 17, 1998 18:25 %ELC %US %TEL %MRG %HOT CIEN TLAB V%REUTER P%RTR NEW YORK, Aug 17 (Reuters) - BT Alex Brown reiterated a strong buy rating on Ciena Corp and said the recent drop in the stock price offers a buying opportunity for investors. -- on Friday, shares of telecom equipment provider Ciena fell 27 percent after it said its third quarter earnings would fall short of expectations. Shares of its future parent company, Tellabs Inc. , fell as well. -- Ciena said Friday that it expected to report operating income of 13 cents to 15 cents a share in its third quarter, below the consensus estimate of 32 cents a share, because of a delay in a $25 million order. -- Tellabs said Friday it was committed to its pending $7.1 billion acquisition of Ciena. -- BT Alex Brown said Ciena's shares were proportionately harder hit and the price decline offered a buying opportunity. Said continues to see strong fundamentals in the combined Ciena-Tellabs. -- BT Alex Brown said Ciena management reaffirm that it still believed the long-term target of 52 percent to 55 percent gross margins was "appropriate." -- BT Alex Brown said Ciena also told analysts it was seeing "desperate" pricing actions by some of its competitors. Said Ciena did make some price cuts to one existing customer in the July quarter, but not to others. -- BT Alex Brown said the status of potential contracts from AT&T Corp remains uncertain for Ciena. Said Ciena is strongly-positioned in the 40 channel dense wavelength division multiplexing (DWDM) market and expects revenues from potential AT&T contracts to be recognized in 1999. DWDM is a method of increasing the capacity of fiber optic phone lines and data networks. -- shares of Ciena gained 2 to 56-1/8. Tellabs gained 7/16 to 58-9/16.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next