Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: The Phoenix who wrote (26720)	7/1/1999 12:20:00 AM
From: DiB	Read Replies (1) \| Respond to of 77400

I have not seen this posted here... Tellabs getting into the picture... LISLE, Ill. (CBS.MW) -- Phone-equipment maker Tellabs Systems will acquire privately held NetCore Systems for $575 million in stock, shoring up its ability to offer products that allow networks to carry data and voice traffic. Tellabs, whose deal to buy Ciena Corp. collapsed last year, said the purchase will reduce earnings per share by 1 cent to 2 cents in 1999, but will add "slightly" to profits in 2000. See press release. Shares of Tellabs (TLAB: news, msgs) skidded 1 13/16 to 67 9/16 Wedneday. NetCore makes a switch/router-type device that combines so-called Internet Protocol and ATM transmission platforms designed to send data, voice and video at high speeds over "next-generation" networks. Tellabs said the device, which acts like a traffic cop for information traveling over telecommunications networks, will help reduce the cost and complexity of building those networks. It also fills a key gap in its roster of products. "This will help us deliver the right products and technology for major carriers who are committed to offering a full suite of services over an integrated multiservice network," said Brian J. Jackman, president of Global Systems and Technology at Tellabs Increasingly, phone carriers are moving away from century-old circuit-based networks designed to carry voice traffic in favor or faster, more efficient and versatile "packet-switched" networks that are geared for the Internet. To make its product line more attractive for these phone carriers, Tellabs last year tried to acquire Linthicum, Md.-based Ciena, a maker of equipment that allows fiber optic phone networks to carry substantially more traffic. That deal later fell apart after Ciena (CIEN: news, msgs) lost several key contracts and its stock faltered. In the wake of the deal's collapse, Tellabs reiterated its intention to pursue more acquisitions. The purchase of NetCore, based in Wilmington, Mass., certainly won't be the last.

To: The Phoenix who wrote (26720)	7/1/1999 10:43:00 AM
From: Larry Dambra	Read Replies (1) \| Respond to of 77400

That's a pretty interesting comment. INTC as a networker. I know they've been on a buying binge lately, scapping up a gigabit switch maker here and a nic company there. I spoke to some of the Intel guys at a local Intel demo days here recently and they all said the same thing. Can you say growth by acquisition? I knew that you could. Networking support, especially embedded on the motherboards and in all of their embedded products is where INTC is going. Cheers, Larry