Pat, I am not really up on the technology, but I did listen to the cc replay, so will chip in impressions.
1. What was your prediction for earnings going into today? .04
2. What was concensus? .02 concensus, .05 whisper. Sales down from year-ago in spite of strength in OA.
3. I was expecting nothing in this area. AFAIK the rationale is simply that they are exiting this line of business. They are simply going to stop making these products. Not stated but rather apparent was that the business is so unattractive that they could not even find a buyer to take it over.
4. Request for clarity on spin-off sched: yes, dismissive.
Worthy of note that OA spin-off cannot now be accomplished until at least 3rd quarter of 2000 (after completion of integration of FOCI), possibly 4th quarter.
5. Did you expect more clarity on customer trials for RedC product line? I didn't, no. Thought it was positive, re: a 2nd customer in beta, a competitive win with Redback, and at least one other customer in negotiation as I recall
6. Analyst's tone and earnings source going forward; no opinion on tone, Noam never says anything about future earnings anyway.
7. Did not understand the part about consolidating earnings from the startups; anyone?
8. Positive: mfg capacity, asian growth, breadth of product line in optical. Negative: same-o, same-o: it's still all on the come; quarter sales down yr-over-yr. Looks great; but still out there at the other end of the tunnel.
Also, I am fairly sure that CW was NEVER sched to go into beta in the 4th Q as the Gruntal jerk said. And I wish Noam had told him so in so many words.
Also, note that MRVC paid 15 times sales for FOCI.
Overall impression: ho-hum. A good acquisition, but no sales spike, no earnings surprise, on sched on betas, but delays on IPOs. Just a hold; no reason to sell for LT holders.
BP |
