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Highlights from the Second Day of J.P. Morgan's Communications Equipment Conference
SAN FRANCISCO--(BUSINESS WIRE)--Feb. 11, 2000--The second day of J.P. Morgan's Third Annual Communications Equipment Conference at the Ritz-Carlton, Laguna Niguel, Dana Point, California featured presentations from both private and public companies.
Charlie Willhoit, J.P. Morgan's Communications Components Equity Research analyst said, "It is very clear to us that demand for optical components and systems is extremely strong." Morgan's Communications Systems analyst Greg Geiling noted that several components and systems makers expect the Metro DWDM market to take off in the latter part of 2000. "This market will ramp significantly in 2001," said Geiling. Both analysts noted that the trend among systems makers to outsource more components is gaining momentum.
Today's highlights from selected presenting companies:
-- Cisco Systems noted that it is rapidly integrating its recent
optical acquisitions and gaining traction with customers in the
optical market. Cisco also reiterated its plans to continue
aggressively making acquisitions in this sector.
-- CIENA continues to gain traction with diversification of its
product portfolio, with products from long haul DWDM to optical
switches to Metro DWDM systems shipping to customers. The company
is currently limiting trials of its CoreDirector optical switch
to six carriers and expects to expand that in the April/May time
frame. CIENA is also making progress with efforts to expand its
customer base and now has products installed in 31 networks
worldwide.
-- Corning gave a very optimistic presentation highlighting strength
in its fiber business and focusing on new products in its optical
components division. Presentations from Williams Communications,
Level 3 Communications, Tyco Submarine Systems Ltd., and Nortel
Networks all referenced Corning's advances in fiber and the
strength of the fiber market in general. Nortel Networks also
discussed how important new fiber will be in enabling new
technologies and was very positive on Corning's new
optical-switching advances.
-- E-TEK Dynamics: Emerging systems players and submarine players
are increasingly looking to use the company's passive optical
components. The company noted that its broad supply of passive
optical components would both augment and complement JDS
Uniphase's product portfolio.
-- Finisar: The gigabit Ethernet LAN and Fibre Channel SAN markets
continue to look robust and the company is making strides in next
generation 2 Gbps Fibre Channel and 10 Gbps Ethernet. The company
noted that technologies for cable networks are growing faster
than expected and could be a meaningful contributor of revenues
in the second half of 2000.
-- Foundry Networks is aggressively expanding its addressable market
and is morphing into a full-service IP and enterprise solutions
provider. The recent introduction of the NetIron 400/800 IP core
router has been well received and management anticipates that
over 100 customers will be deploying the NetIron 400/800 by the
end of 2000.
-- JDS Uniphase continues to focus on capacity expansion, product
breadth, next generation technologies, and executing its
acquisition and global operations integration. Their large
customers continue to show increasing demand for optical
components and new systems players will likely exacerbate the
supply-demand gap.
-- Nortel Networks showed continued optimism about the optical
market. Demand is already strong and appears to be accelerating
as Nortel exits January and gets a closer look at carriers'
spending plans. The company is on plan to expand optical
manufacturing capacity three-fold in 2000 and may have to expand
that even further.
J.P. Morgan is a global financial firm with a growing technology, media, and telecom investment banking and equities practice. The firm has over 150 professionals worldwide dedicated to this business, and in the United States, has teams in San Francisco, New York, and Los Angeles.
CONTACT:
Margaret Southerland, 415/954-3213
southerland-m@jpmorgan.com
KEYWORD: CALIFORNIA NEW YORK |
