WPaul ---
There are four companies in the world with lithium niobate technology: Uniphase, Lucent, Sumitomo, and IOC. At modulation speeds of 40 gigs and above, it's the only technology that works. Today Uniphase is the largest supplier of lithium niobates, almost all at 2.5 gigs. The early leaders in 10 gig are Lucent, Uniphase, and IOC. And the market's just beginning.
By buying IOC, SDLI is now well positioned to expand into the transmission market. In the early stages of DWDM, pump modules and lasers are installed first --- it all has to do with digging up the ground and what has to go in while the trench is open --- and the transmission comes next. Don't you love my technical descriptions? :))
The pump and amplifier market is growing at 100% a year and will for several years, but eventually the transmission market will be where the big growth is.
In a conversation with the company after the conference call, I asked if anyone was looking at them as an acquisition target and was told, "Yes. Everyone!" I was assured they don't want to be taken out but are, instead, looking at more acquisitions.
I've been in SDLI since December and have no plans to take profits. The market is barely beginning and growing at explosive rates. The same with JDS/Uniphase.
When people ask what to buy, I say, buy both.
Cheers!
Pat |
