UNPH _ Uniphase Message Board

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Technology Stocks : UNPH _ Uniphase

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To: Ben Wa who wrote (1083)	1/30/1999 12:07:00 PM
From: Bulldozer	of 1261

A few comments on recent posts - 1. I'm travelling right now so I do not have the exact numbers, but UNPH has 100s of patents it either owns outright or controls. 2. UNPH's 980 Gen 4 chips are among the fastest growing components anywhere in the optical world. Their run rate alone could be as much as $150M/yr within a few yrs. JDS obviously has fast growing components as well, but it is not accurate to say JDS has a much faster growing product set than UNPH. 3. In my post a week or so ago I stated the Japanese were an impediment to a deal. I guess I've been proven (happily)wrong! A few observations on the combo from my previous dd and info from the call - 1. The combo enhances each company's ability to offer modules instead of components. This not only implies greater margins to jds uniphase, but makes the offering that much easier to buy for the customer as it greatly improves their time to market. Both companies customers (they have 40 common customers!) have shown great interest in being able to one-stop shop. 2. One or the other company has huge mkt share in most of the component sectors in the four mkts they serve - terrestial long-haul, sub-ocean, metro and catv - think of the instant credibility and improved sales cycle that follows from utilizing the stronger company's relationships in that sector. 3. One intangible - both companies employ a considerable number of the most brilliant optical scientists/engineers in the world. Imagine what can happen now that they will be working together. 4. Barriers to entry. They are now the only independent active and passive merchant optical component (whew!) maker in the world. Their products sometimes take years to qualify and once deployed, are designed in for many many years. You simply just cannot start a company and challenge someone with all this experience and know-how. These guys are building a wall around themselves that should be very good for shareholders. 5. From a financial perspective, the combined company can now reach $1B in sales within a few years and can attract the largest institutional investors. They graduate to the 'big' leagues. Many more observations but bottom line, great combo with a great future. Bulldozer

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