In contrast to DSC's pathetic operating performance over the past few years, as well as the dismal outlook, Tellabs knows how to manage its business. It has been claimed that Tellabs is really a one-product company, versus DSC with a multiple product line. Whether Tellabs is a one-product company or not, I don't know, but Tellabs certainly knows how to produce consistent results and consistently reward its shareholders. Northern Telecom, I believe, reports its results tomorrow.
The ultimate report card on any company's management is the firm's stock performance. Our stock price closed at 17 3/4 today. Tellabs closed at 71 5/16, up 2 11/16; Northern Telecom finished at 66 3/4, up 1 9/16; Lucent ended at 71 1/2, plus 2 1/8. A remarkable and embarrassing contrast.
In the Dallas Morning News online issue of 4/3/98, DSC's current chairman referred to DSC's problems by saying - "Well golly, you hit a bump in the road, are you going to turn tail and run? That's not my nature," Mr. Donald said. He called this a bump in the road! This nonsense has been going on since October 1995. |
