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 : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?

To: SJS who wrote (884)	8/27/1999 12:10:00 PM
From: Bulldozer	Read Replies (1) \| Respond to of 24042

I am not aware of anyone else with Cerent's capabilities in the low end. My understanding is that Kleiner Perkins actually created the company to fill a niche that nobody was filling (and in the process turned $8 million into $2 billion in a year or two). Cerent combines the functionality of lower end ADMs and DCCs from the likes of Nortel, Alcatel, LU and Fujitsu. Tellabs, which plays more in the high-end, will not be initially affected by Cerent and was unjustly sold off yesterday. Cerent comes with over 100 customers and a projected rev rate of $300 million in CY2000. On a P/S ratio, the price was 23X. This compares to 70X for Juniper at current prices. I believe Chambers initially balked at the price, but was convinced after looking at the potential revenue a year or two out. So, it may not have so wildly overpriced afterall (relatively speaking). Bulldozer