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

To: Martin A. Haas, Jr. who wrote (1556)	10/29/1999 11:06:00 PM
From: Chris Stovin	Read Replies (1) \| Respond to of 24042

Friday October 29, 6:07 pm Eastern Time JDS Uniphase shares glow hotter on rating upgrades (All in U.S. dollars unless otherwise noted) By Lydia Zajc TORONTO, Oct 29 (Reuters) - JDS Uniphase Corp. (NasdaqNM:JDSU - news) (Toronto:JDU.TO - news) was the belle of the ball on the Toronto Stock Exchange on Friday as analysts upgraded recommendations and earnings forecasts for the hot fiber-optic equipment maker. Shares in the company, based in suburban Ottawa, Ontario and in San Jose, California, climbed more than 11 percent or C$24.90 to C$249.50 on the Toronto Stock Exchange at midday, heading the list of net gainers. On Nasdaq, its shares jumped 17-5/16 to 169-3/4. The firm, the result of a marriage this summer between U.S. firm Uniphase Corp. and Canada's JDS FITEL Inc., reported after market close on Thursday that first-quarter earnings topped analysts' predictions. Executives also unveiled a surprise forecast that fiscal 2000 sales would grow 80-90 percent over the previous year, excluding the recent acquisition of EPITAXX Inc. JDS Uniphase supplies equipment to companies such as Lucent Technologies Inc.(NYSE:LU - news) and Nortel Networks Corp.(Toronto:NT.TO - news) that boosts the capacity and performance of fiber-optic networks, which carry data on light wavelengths. Analyst Rob MacLellan at CT Securities increased his recommendation to strong buy from accumulate and upped his 12-month target for the stock price to $195 from $127. ''Right now they're the biggest player in the hottest sub-sector of the communications space in North America, actually globally,'' MacLellan said. ''Given the results last night, conversations with management, so forth, we took another look at our numbers,'' MacLellan said. ''Given the fact that they've increased earnings estimates we think the growth is accelerating, post-merger, with the synergies and so forth.'' The company on Thursday unveiled plans to expand manufacturing capacity by two to three times by the end of next calendar year. ''With the capacity expansion they're planning, we've increased our (fiscal 2000 earnings per share) estimates from $1.16 to $1.30,'' MacLellan said. Also, analyst Arun Veerappan at BancBoston Robertson Stephens said he started coverage of JDS Uniphase with a buy rating. ''We believe the potential for accelerating outsourcing of component innovation and production by equipment makers will likely elevate the growth rates for merchant optical component vendors over the coming years,'' Veerappan wrote in a report. Two other brokerages weighed in with increased estimates and price targets. US Bancorp Piper Jaffray raised its fiscal 2000 earnings estimate to $1.31 a share from $1.13, fiscal 2000 revenue estimate to $1.12 billion from $972 million, and its share price goal to $190 from $105. Warburg Dillon Read boosted its 2000 earnings prediction to $1.27 a share from $1.09 and upped its stock target to $175. On Thursday night the company posted first-quarter net income excluding extraordinary items of $51.4 million, or 29 cents a share, compared to an average estimate of 25 cents a share from the 24 brokers polled by research house First Call/Thomson Financial. ($1=$1.47 Canadian)

To: Martin A. Haas, Jr. who wrote (1556)	10/30/1999 8:04:00 AM
From: Glenn McDougall	Read Replies (1) \| Respond to of 24042

Nortel set to unveil strategy for fibre-optic production Bert Hill The Ottawa Citizen Nortel Networks is expected to lift the veil on a new strategy to rapidly increase fibre-optic component production next week. The telecommunication equipment maker will appear before Kanata council Tuesday for approval to build the first phase of a new plant on Palladium Drive near the Corel Centre. Nortel spokesman Paul Hornbeck said yesterday that in addition to the council appearance, Nortel will release additional details of its plans next week. He declined further comment. A City of Kanata spokesman said Nortel wants a permit for a light manufacturing plant. Nortel chief executive John Roth said this week that the Ottawa region is on a short list for a new fibre-optic component plant but that no decisions had been made. Sales of fibre-optic equipment, which dramatically expands the capacity of telecommunication systems, are growing at a 100-per-cent annual rate. The Nortel product line could account for 25 per cent of company revenues of $20 billion next year. A Kanata plant will probably be just one part of the Nortel strategy for increasing production quickly. It negotiated purchase options on two properties on Palladium Drive last week and has apparently decided to buy property on the north side of road, adjacent to a Home Depot store. However, Nortel has told the development industry the options do not mean the company has made a final decision on the site. Construction of the first 125,000-square -foot phase -- about the same size as a big-box store like Home Depot -- could start immediately. People familiar with the project say Nortel hopes to have the plant in operation as early as next summer. Later phases of the property, which is already zoned for industrial use, would increase plant size to about 300,000 square feet. Nortel is also looking at expansion elsewhere. Nortel has an extensive fibre-optic manufacturing operation in Paignton, England and a research and development in Harlow, England. A Kanata plant will probably also mean changes at Nortel's current fabrication facility on Corkstown Road in Nepean which makes silicon wafers and specialized chips for fibre-optic products as well as other products.