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Technology Stocks : Lucent Technologies (LU)
LU 2.500+3.5%3:59 PM EST

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To: Sawtooth who wrote (4164)9/17/1998 6:07:00 AM
From: Ridi J  Read Replies (1) of 21876
 
>can you expound on the "caught fire" part of that?

I somehow missed the "golden shower" test story.

Message 5685639 is the link, and here's an excerpt:

<<"There were a lot of failures that were uncharacteristic of our past
experiences," said one Ciena engineer who worked on the AT&T
evaluation, which began in November 1997. "However, most of these are things we were really manufacturing for the very first time."

Meanwhile, Tellabs began talking with Ciena about a merger in February. Tellabs is a 24-year-old company that has built a solid business out of making equipment that helps phone companies manage their networks.

The merger announcement in June was greeted enthusiastically by Wall Street. But behind the celebration of the planned marriage, Ciena officials were busy putting out a fire. Literally.

Around midnight, two days before the merger was announced, an AT&T employee noticed smoke coming out of a Ciena power supply circuit board. Smoke or fire in a lab test is probably the worst thing that can happen to an AT&T vendor: AT&T officials still shiver when they recall Mother's Day 1988, when a fire swept through a phone switching facility in Hinsdale, Ill., knocking out service for weeks. Within days AT&T asked Ciena to remove its equipment.

Ciena sent the board to a third-party testing facility, which cited faulty
circuit construction as a probable but inconclusive cause. The incident did little to persuade AT&T that Ciena was capable of supporting its equipment at the scale AT&T needed.

"Probably Ciena didn't respond as aggressively as they might have, or as we would have," Birck said. "You just have to take that kind of thing extremely seriously. You have to define the root cause. I don't think they did that.>>
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