Uniphase in quarter ending 9/30/98:
Rev. 54.2 $MM, Net income 9.7 $MM, # of shares 41.3 MM, price/sales 16.8, MktCp 3639.0 $MM
Two main competitors E-Tek(ETEK), SDL Inc(SDLI)
1998 sales UNPH $175.8MM, ETEK $106.9MM, SDLI $106.1MM
The industry is photonics, and refers to the process of harnessing light for optoelectronics applications. Telecom needs it to increase speed, increase bandwidth.The industry operates in 3 segments, systems, modules and components. Systems providers include Lucent, Ciena, Nortel and Alcatel. Module manufacturers include Corning, Lucent,and an in-house division of Nortel. Components are manufactured by Uniphase, E-Tek and SDL. JDS makes passive components, Uniphase active components; they do not compete,they compliment each other. After merger their components will be assembled into modules and sold to the system providers at a higher margin for UNPH and a time and cost savings for their customers.
per IBD, Uniphase has been agressive in acquisitions, their strategy is to move up the food chain and they have been very good at integrating past acquisitions.
IMO they bear watching.
Fred
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