Fiber-Optic Sector Scores Major Gain on Trade Show
By Susan Taylor
OTTAWA (Reuters) - A string of technology firms sparkled under the spotlight from a fiber-optic trade show on Monday as stocks linked to the hot sector hit record levels.
``Any show like this puts all these companies in the limelight and they're all up from an average of 3 to 25 points on my screen,' said George Hunt, analyst at Wachovia Securities Ltd.
``There's just such incredible capacity gains with optical networking and we're so early in the cycle.'
The Optical Fiber Communication Conference and Exhibit 2000, which kicked off on Monday in Baltimore, Maryland, is the sector's largest show. It runs five days and draws large crowds of corporations and analysts tracking technical developments and market shifts.
``The market right now is jumping on anything that is optic-centric,' said Rob MacLellan, senior technology analyst at Research Capital Corp.
``Communications networks are moving from copper-based to, increasingly, optical-based and investors -- especially the technologically-savvy investors -- are well aware of that fact.'
JDS Uniphase Corp. (NasdaqNM:JDSU - news)(Toronto:JDU.TO - news), the world's largest supplier of parts for fiber-optic equipment in phone networks, hit new record highs on Monday.
The firm, based in the Ottawa area and San Jose, California, is introducing new products aimed at systems that transport voice and data traffic at 10 gigabits per second. JDS Uniphase will host a show-and-tell session, demonstrating that technology to analysts, on Tuesday.
JDS stock hit a record high of C$218.00 on the Toronto Stock Exchange before slipping to close at C$208.00, a gain of C$5.50. On Nasdaq the issue hit a record of 301 5/8, then pulled back to 293 1/16, a gain of 13 1/16.
Nortel Networks Corp. (Toronto:NT.TO - news)(NYSE:NT - news) one of the world's largest communication equipment vendors, added 6.5 percent on Monday, announcing it would unveil on Tuesday a major expansion of its optical Internet product line.
The shares touched a new high of C$188 on the Toronto bourse before edging back to C$186.20, a gain of C$12.50. On New York, the issue added 8 1/2 to trade at 129.
``Nortel has a bunch of things they've hinted at and they may officially announce them,' said Paul Sagawa, analyst at Sanford Bernstein & Co. ``This will focus attention on optical stuff and optical stuff is generally good for Nortel.'
Brampton, Ontario-based Nortel will present details of technology from Qtera Corp., which Nortel bought for up to $3.25 billion in stock in mid-December.
Qtera technology breaks a technical barrier and allows information to be sent inexpensively at distances as great as 2,500 miles (4,000 kilometers) as light waves, without converting them to electronic signals. The conversion required under older technology consumes time and money.
Nortel also said on Monday it will set up joint venture Nortel Networks Israel with Israeli holding company Koor Industries Ltd. (KOR.TA) to help deliver its Internet products to that market.
Nortel was joined by a host of other buoyant stocks in the sector in the United States and Canada.
Agilent Technologies Inc. (NYSE:A - news) soared 39 percent Monday after announcing it had developed switching equipment that can route optical signals carrying voice, data or video without converting them from photons to electrons -- accelerating a shift to an all-optical network.
The Palo Alto, California-based firm added 53 to finish at161 after it said it would unveil the equipment on Tuesday at the show.
Telecommunications equipment maker CIENA Corp. (NasdaqNM:CIEN - news) of Linthicum, Maryland. said it would demonstrate its optical switching equipment that has been boosted to handle up to 10 gigabytes of data or voice traffic per second.
Shares in the firm added 6 7/8 to trade at 176 3/16 on the Nasdaq. Ciena said the interface is expected to be ready in the third calendar quarter of 2000.
Semiconductor and communications equipment developer Mitel Corp. (Toronto:MLT.TO - news)(NYSE:MLT - news) picked up nearly 16 percent as it demonstrated new optical network chips at the conference.
Mitel shares hit a new record of C$44.45 on Toronto then retreated to C$43.30, a gain of C$5.30. On New York the issue picked up 3 7/8 to trade at 29 1/2.
The Ottawa-area based firm's new technology removes data traffic bottlenecks in large-scale computer and communication systems. Its short-reach chips use fiber optics to connect network gear, allowing more data to travel faster.
The Internet is pushing the market for short-reach optical connection chips to expectations of more than $1 billion within four years, Mitel said. |
