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Technology Stocks : JDS Uniphase (JDSU)

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To: Kent Rattey who started this subject	10/27/2000 1:15:33 AM
From: S100	of 24042

WSJ Article on JDSU Seems very bullish ----- JDS Uniphase Backs Optimism With Strong 1st-Quarter Results By SCOTT THURM Staff Reporter of THE WALL STREET JOURNAL JDS Uniphase Corp. sought to calm nervous investors with strong fiscal first-quarter results and equally bullish statements about its outlook for fiber-optics communications gear. Just two days after Nortel Networks Corp. stunned financial markets by reporting slower sales of fiber-optics equipment, JDS officials said they see no letup in the fevered demand for JDS components, which are used by Nortel and others. "We had a great quarter," JDS Chief Executive Jozef Straus told Wall Street analysts at the start of a conference call. "Our outlook and guidance for the next quarter and the year are equally strong." Repeatedly and at great length, JDS executives went out of their way to ease fears that JDS wouldn't be able to meet targets for explosive growth. President Charles J. "Jay" Abbe said the company had extensively surveyed its customers and found no indication of growing inventories, phantom orders or slowing forecasts. "We cannot see and do not find meaningful evidence of an industry slowdown," Mr. Abbe said. snip snip Revenue more than doubled to $786 million from $290 million a year earlier and grew 23% from $641 million during the fiscal fourth quarter ended June 30. Analysts expected revenue in the range of $750 million to $770 million for the first quarter. There were no hints of an industry slowdown elsewhere in JDS's financial statements. Inventories grew only 5% from the previous quarter, much slower than sales. And accounts receivable kept pace with sales, suggesting that JDS's customers weren't hoarding equipment or having trouble paying their bills. One reason why JDS may have dodged the worst impact of Nortel's slowing sales: a broadening product line and customer list. For the first time, Alcatel SA of France joined Nortel and Lucent Technologies Inc. in accounting for more than 10% of JDS's fiscal first-quarter sales. Business from Lucent fell as a percentage of JDS's sales, but Mr. Muller said sales to Nortel grew faster than overall sales. It still isn't clear why JDS's sales to Nortel grew so much more quickly than Nortel's sales of optical gear to its own customers. Analysts suggested the Nortel products most affected by the slowdown may be those that don't use a lot of parts from JDS. Analysts said the JDS executives convinced them there is no industrywide slowdown. snip

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