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Technology Stocks : SDL, Inc. [Nasdaq: SDLI]

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To: pat mudge who wrote (1005)3/20/2000 11:50:00 AM
From: SJS  Read Replies (1) of 3951
 
CSFB raises earnings targets (3/20/00):
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SDL, Inc. (SDLI-$216.88-Cap $16.4B-Buy)

Recent Acquisitions to Boost Our EPS View by $0.08 in 2000 and $0.10 in 2001 FY00E: $0.72, FY01E: $1.00

ú Raising estimates following Queensgate (closed 3/8/00) and Veritech Microwave (to close early April) acquisitions; EPS will increase to $0.80 in 2000 (from $0.72) and to $1.10 in 2001 (from $1.00); Top-line will be raised to $356.3M in 2000 (from $310.5M) and to $500M in 2001 (from $434.6M).

ú SDLI?s core 980nm pump laser/module business continues to experience robust demand and we believe is tracking slightly above expectations; IOC to ramp in Q2:00 and is on plan to meet our $40M projection for 2000.

ú Mgmt remains focused on reaching critical mass through internal product development and acquisitions; View SDLI as attractive product cycle play in the fast-growing optical networking space;

Reiterate BUY.
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