Transcript of KK's CNBC interview a couple of mins ago:
BILL: JDS UNIPHASE, ONE OF
THE BEST PERFORMING STOCKS
ON THE NASDAQ THIS YEAR.
IN THE LAST TWELVE MONTHS,
IT'S UP NEARLY 1200%.
HERE'S A LOOK AT THE STOCK
PERFORMANCE.
THE STOCK CLIMBING FROM A
LOW OF $23 ABOUT A YEAR AGO
TO TODAY'S CLOSE.
JOINING US NOW IS KEVIN
KALKHOVEN, CHAIRMAN AND CEO
OF JDS UNIPHASE, WITH US
FROM BALTIMORE.
WELCOME BACK.
>> HI, BILL, THANK YOU.
BILL: YOU'RE UP TO 10
GIGABYTE PER SECOND
TECHNOLOGY NOW, RIGHT?
>> THAT'S LATEST PHASE OF
THE TECHNOLOGY, IT WILL GO
EVEN FASTER IN COMING YEARS.
BUT THAT'S WHERE WE ARE NOW.
BILL: WHAT KIND OF PRODUCTS
ARE YOU INTRODUCING THERE?
>> WELL, IT'S MAINLY A RANGE
OF PRODUCTS DESIGNED TO
INCREASE BANDWIDTH BY HIGHER
SPEEDS AND MORE LIGHT WAVES,
BUT BASICALLY MORE
BANDWIDTH.
BILL: IS THAT WHAT WE WILL
SEE HERE, A CONTINUED
INCREASE IN BANDWIDTH AS WE
GO ALOINING?
>> ABSOLUTELY.
BILL: WHAT IS THE MOORE'S
LAW OF BANDWIDTH RIGHT NOW?
FOR SPEEDS OF COMPUTER CHIPS
THAT USED TO DOUBLE ITS
CAPACITY EVERY 18 MONTHS,
WHAT ARE WE TALKING ABOUT
FOR YOU GUYS WITH BANDWIDTH?
>> AT LEAST FIVE, SIX TIMES
THAT RATE OF CHANGE, AT
LEAST.
MAYBE AS MUCH AS 10 TIMES
THAT RATE OF CHANGE.
SO IT'S BANDWIDTH IS GETTING
TO BE BIG.
BILL: LET ME ASK YOU ABOUT A
BIG PICTURE QUESTION.
FED CHAIRMAN GREENSPAN HAS
BEEN TRYING, SEEMS TO
JAWBONE THE STOCK MARKET
LOWER WITH TALK OF HIGHER
INTEREST RATES TO TRY AND
COOL THE ECONOMY DOWN A BIT.
BUT IT DOES NOT SEEM TO BE
AFFECTING TECHNOLOGY STOCKS,
YOUR COMPANY IS A VERY GOOD
EXAMPLE.
REALISTICALLY, FUNDAMENTALLY,
AREN'T YOU GUYS AFFECTED IF
INTEREST RATES GO UP AND
SLOW THIS ECONOMY DOWN?
>> THE ANSWER IS NOBODY
REALLY KNOWS.
THE DEMAND FOR BANDWIDTH
SEEMS TO BE PRETTY INEXHAUST
STIBL AT THIS MINUTE.
WHAT IS HAPPENING AS WE
PROVIDE MORE BANDWIDTH, ITS
COST IS FALLING WHICH ALLOWS
PEOPLE TO USE MORE.
THAT'S THE SORT OF UNIQUE
SITUATION WE'RE IN.
MORE CAPACITY AT LOWER
PRICES AND THAT SEEMS TO BE
AT LEAST FOR AWHILE
MITIGATING MR. GREENSPAN'S
EFFORTS.
BILL: YOU DON'T HAVE TO
BORROW MONEY AS ANY POINT TO
KEEP YOUR QL GOING HAD.
>> NO, WE HAVE NO DEBT AND
WE HAVE THE BEST PART OF A
BILLION DOLLARS IN THE BANK,
WE'RE OKAY FOR AWHILE.
BILL: I KNOW THAT YOU'RE IN
A WATERSHED PERIOD WHERE THE
BUILDOUT CONTINUES FOR
BANDWIDTH AS WE HEAD TO
BROAD BAND TECHNOLOGY FOR
HOMES AROUND THE COUNTRY.
WHEN DO YOU FEEL WE WILL SEE
THAT BECOME A REALITY FOR
MOST HOMES IN THE UNITED
STATES?
>> WELL, I THINK IT'S GOING
TO BE IN THE NEXT FIVE YEARS,
THAT'S A HECK OF A GOOD
QUESTION.
THIS IS THE BIG BREAK
THROUGH WE WILL HAVE IN THE
NEXT FIVE YEARS IS GETTING
MORE BANDWIDTH TO YOU AND I
AS CONSUMERS, SOME WILL COME
ON BROADBAND THROUGH CABLE
SERVICES, SOME WILL COME
THROUGH DSL TECHNOLOGIES,
SOME, ONE OF THE REALLY
EXCITING THINGS WILL COME
THROUGH THE NEW RANGE OF
THIRD GENERATION CELLULAR
TECHNOLOGIES.
AND IMAGINE THE BANDWIDTH
REQUIREMENTS WHEN A BILLION
PEOPLE START TO USE HIGH
CAPACITY CELLULAR PHONES.
BILL: MUCH HAS BEEN MADE OF
THE BATTLE BETWEEN DSL AND
CABLE TO PROVIDE BROADBAND
TECHNOLOGY TO THE HOME, DSL
TRYING TO RUSH THERE BECAUSE
IT'S MORE EXPENSIVE THAN
CABLE.
CABLE HAVING ITS PROBLEMS
GETTING TO THE HOME.
DO YOU SEE A WINNER IN THAT?
DOES THAT EVEN MATTER?
>> ONE IS, I DON'T THINK IT
MATTERS BECAUSE I THINK WE
WILL SEE A COMBINATION,
INCLUDING THE CELLULAR.
SECONDLY, I THINK WHAT WILL
HAPPEN IS THE FIRST SERVICE
THAT A CONSUMER TAKES WITS
DSL OR CABLE, IS THAT HIGH-SPEED
BANDWIDTH IS THE ONE WE WILL
END UP WITH, I DON'T SEE
THEM SWITCHING.
SHOULD BE A RACE TO SEE WHO
GETS TO THE CONSUMERS FIRST
BUT NOT FAR BEHIND IS
CELLULAR, I THINK THAT WILL
BE ALL-PERVADING.
BILL: I KNOW YOU'RE ROOTING
FOR EVERYBODY.
MR. KALKHOVEN, THANK.
>> THANK, BILL.
>> KEVIN KALKHOVEN,
CHAIRMAN AND CEO OF JDS
UNIPHASE, WITH US FROM
BALTIMORE. |
