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Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: pat mudge who wrote (13380)	9/19/1999
From: fumble	Respond to of 18016

Pat - thanks much for the words on Tellabs/NN The choice of Tellabs was not mine, but since it is rather similar to NN (marketwise), I thought the comparison with NN would be interesting. I had heard the speculation about Tellabs buying NN too. I think NN would do better on its own. Thanks again.

To: pat mudge who wrote (13380)	9/19/1999 9:43:00 PM
From: Mr.Fun	Respond to of 18016

Tellabs' primary product line is the Titan, which dominates the market for digital cross connects. These products aggregate fractional T1s, T1s, and T3s for transmission over high bandwidth SONET transport. The primary advantage of Titan is its extremely flexible service managment architecture that enables fast and easy provision of new connections and services, grooming traffic for efficient transport. The market for these products is growing rapidly, with Tellabs' 1H growth of nearly 50% YoY evidence of both strong demand and Tellabs dominance. BTW Tellabs also delivers Cisco-esque gross margins and operating margins. Given robust growth in retail and wholesale private lines and the near reverence with which telcos regard this company, the Titan has several years of strong performance ahead of it. However, if there is a concern, it is what comes next. Eventually, cross connect sales will plateau and decline as IP and ATM alternatives replace private lines and optical cross connects take over this important job at much higher bandwidths. Investors are scared to death that something will kill this golden goose sooner rather than later - witness the overreaction to Cisco's acquisition of Cerent - which combines rudimentary cross-connect capability into a SONET add-drop mux. Pat has summarized some of TLABs newer products, intended to eventually pick up the slack once the TITAN starts shown signs of slowing. BTW, Tellabs doesn't make PBXs - although the company name might make you think so - it is closely focused on the carrier market. IMHO, this company has alot more legs than most investors are giving it credit and perhaps the best management in the industry. This company has never disappointed.