FWIW
>>J.P. Morgan Securities on Thursday downgraded Sycamore Networks (SCMR) to "market perform" from "buy" and slashed estimates for Sycamore, Ciena (CIENA) , Corvis (CORV) , ONI Systems (ONIS) , Tellabs (TLAB) , and Foundry Networks (FDRY) to reflect the extended capital spending slowdown. In making the changes, analysts Jeffrey Lipton and Erik Suppiger said they had been hopeful that carrier spending would reaccelerate toward the end of 2001 but there has not yet been clear signs of the bottom and that they now believe the current spending slowdown could extend beyond the second half of this year.<<
cbs.marketwatch.com;
And their further commentary on Ciena:
>>Ciena: Despite overall weakness in the long-haul DWDM market, Ciena appears to have won a
number of large contracts that are deliverable this year. Furthermore, its CoreDirector product has
established a clear and early leadership position in the opaque optical switching space and should
ramp to meaningful levels toward the end of 2001. While we don't believe this or next quarter's
results are at risk, visibility beyond the July quarter has diminished in our opinion. To reflect this
higher level of risk, we are flattening the Company's growth for the end of FY:01 and the
beginning of FY:02. Our FY:01 estimates go from $1.75B/$0.73 to $1.71B/$0.71, and our FY:02
estimates go from $2.86B/$1.12 to $2.54B/$0.95. However, due to its strong position in a number
of optical equipment market segments, we believe Ciena is likely to emerge from the current
environment in an extremely solid position.<<
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