TLAB info? Message Board

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Technology Stocks : TLAB info?

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To: Doughboy who wrote (3014)	8/14/1998 7:08:00 PM
From: Bill Day	Read Replies (1) of 7342

DougHboy, Good posts today. Obviously you paid more attention to the CC than the market did. I just want to reiterate some of your posts. CIEN did not lose an existing contract. ATT decided to continue buying LU's 16 channel system while most of their competitors are moving up to 40 channels and soon to 96. Ciena had 11 customers last quarter. Neither TLAB nor CIEN have ever sold much to ATT. Mr. Birck admitted that T prefers to do business with LU. T Rowe Price's Chip Morris even suggested that TLAB should forget about ATT and let them take the chance on being stuck with inferior technology. CIEN still has the only 40 channel system shipping right now, and it accounted for more than half of last quarter's sales. Somebody must be buying them. Without the $25M order pushed out of the shortened 3Q, this call wouldn't even have happened. Birck and one of the CIEN guys, each said that the quarter's shortfall was an aberration, and gross margins would be back up to the 52-55% next Q, except that CIEN won't be reporting separately again. I couldn't see a reason for this big a selloff, especially after TLAB had already lost $20 from its high, largely because of the same "news" about T having already been reported. Bill

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