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Technology Stocks : Harmonic Lightwaves (HLIT) -- Ignore unavailable to you. Want to Upgrade?

To: Gary who wrote (2866)	7/28/1999 7:45:00 PM
From: Hiram Walker	Respond to of 4134

Gary et all, good article about access technologies. We are here,we are the one doing the micronodes with 50 subs,low cost Gig Ethernet and wiring America. Check out this article. news.com Features/0,5,38002,00.html Cable to the curb A few places in the world are well ahead of the broadband curve, already bringing high-speed fiber-optic cable as close to doorsteps as possible. Trial projects in Texas and elsewhere around the country are using "fiber to the curb" to give households network access rates of up to 100 megabits per second (mbps), or more than 1,700 times the speed of the fastest dial-up modem. BellSouth is also rolling out its own trial program later this year, outfitting about 400 homes with fiber connections able to handle video, voice, and data services. The lines are more expensive to install, but BellSouth has predicted that prices will come down to rival copper-based DSL in a few years after demand increases. "It's not quite as far off as many people think," said Kevin Werbach, managing editor of Esther Dyson's Release 1.0 technology newsletter and former Federal Communications Commission counsel for new technology policy. "The cost curves on fiber have been dropping rapidly." Tim

To: Gary who wrote (2866)	7/29/1999 1:32:00 PM
From: Greg Jung	Read Replies (1) \| Respond to of 4134

Gary the earnings may increase much faster than revenue growth, since they are coming out of a break-even situation, to some extent the gross profits can expand without a corresponding expansion of overhead expenses, i.e. they've been at capacity to sell 100 boxes per month but only selling 20, when the customers now want 80 then a dramatic earnings increase can occur. So the stock price presumes a high net margin and a sustained business. I don't know if the price is justified on that basis, but it is possible. In this market however there are several exaggerated market caps i.e. for the recent IPOs, Qualcomm, IBM, etc. HLIT may be another one but I reserve judgement for lack of time.

To: Gary who wrote (2866)	8/11/1999 4:40:00 PM
From: Eric Jacobson	Respond to of 4134

Gary - sorry for taking so long to get back to you. I've been away for a couple of weeks. To clarify, the references to the rates of revenue growth in the conference call refer to sequential increases in quarterly revenue, not the annual increase. In other words, since they had $37.9 million in revenue in 2Q, I took their guidance to mean that we should expect 3Q revenues to increase 5-10% sequentially, which would be in the $40 million range. $40 million revenues for 3Q99 would represent an annual increase in revenues of around 88% over 3Q98 revenues of $22 million. So, they are currently growing revenues in excess of 80% on an annual basis. A couple things to keep in mind about next year, though. The QOQ comparisons are going to get tougher, so their rate of earnings growth may slow somewhat. This is in part because they've been growing like gangbusters this year, but also because they've been underspending on R&D and because they'll be moving to a higher tax bracket.