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

To: Bulldozer who wrote (1594)	11/2/1999 7:06:00 AM
From: Glenn McDougall	Read Replies (2) \| Respond to of 24042

A interesting bit of news individualinvestor.com Regards Glenn

To: Bulldozer who wrote (1594)	11/2/1999 8:30:00 AM
From: Kent Rattey	Respond to of 24042

JDS aims to double capacity Fibre-optic firm posts record quarterly profit James Bagnall The Ottawa Citizen JDS Uniphase Corp. yesterday unveiled plans for a massive increase in its ability to design and build fibre-optic components and systems. The company, already one of the largest employers in the Ottawa region with 5,500 workers, is just putting the finishing touches on a new 240,000-square-foot office and manufacturing and office complex in south Ottawa. This will bring to nearly 860,000 square feet, the amount of real estate under JDS Uniphase's control. More construction is on the way. "The name of the game in the year 2000," said chief executive Kevin Kalkhoven, "is going to be ramping up manufacturing as hard and as fast as we can to meet the demands of our customers." The minimum target is to double capacity next year. The remarkable part is this is coming from a firm that's grown to a fair size. JDS Uniphase saw its sales jump 70 per cent to $587.9 million U.S. in fiscal 1999 (ended June 30). Analysts had been predicting JDS Uniphase would grow another 60 to 70 per cent in fiscal 2000, but chief financial officer Tony Muller told analysts during a telephone conference call to expect growth rates of closer to 80 to 90 per cent. This news flowed from a discussion of the company's stellar results for the first quarter ended Sept. 30. Paced by strong sales of fibre-optic components and other products to telecommunications-equipment giants such as Lucent Technologies Inc. of New Jersey and Nortel Networks Corp. of Brampton, Ont., JDS Uniphase posted a net income of $51.4 million (29 cents a share). The result, which excluded the impact of mergers and acquisitions, was up 122 per cent compared with the year-earlier period and beat the consensus estimate of 25 cents a share by a wide margin. JDS Uniphase revenues soared 104 per cent to reach $230.1 million. JDS Uniphase reports in U.S. dollars. "This was a very solid quarter," said Patrick Houghton, an analyst with California-based Sutro & Co., "The biggest surprise was the strength of the revenue guidance going forward." Another unexpected development had to do with the surge in orders JDS Uniphase received from Lucent and Nortel, which are racing to boost the fibre-optic capacity of the globe's largest telephone and data-communications companies. Mr. Muller reported that 22 per cent of JDS Uniphase's revenues in the first quarter came as a result of selling components and subsystems to Lucent, with another 17 per cent accounted for by Nortel. Both percentages were up significantly from a year ago. Indeed, Nortel reported earlier this week that its sales of fibre-optic equipment is doubling year-over-year. The business is growing so fast that even independent suppliers like JDS Uniphase can't keep up. Nortel chief executive John Roth said Kanata is one of "a very small number" of potential locations for a new factory devoted to building fibre-optic components for Nortel's own use. JDS Uniphase president Jozef Straus acknowledged that Nortel's plans may have some impact on his own. "If Nortel feels the need to have the facility," he said in an interview, "there will be some spillover." However, even the addition of a major Kanata plant by Nortel will only slow the pace of JDS Uniphase's longer-term expansion locally. "With respect to fibre-optic components," said Mr. Straus, "we will see continued growth in the Ottawa region." It's still not clear where the lion's share of the firm's global manufacturing expansion will take place. The company has established a special task force to examine the best ways of expanding its manufacturing generally. JDS Uniphase already operates plants in nearly a dozen locations -- from Australia to Zurich. The task force will look at whether it's better to expand existing operations, build new plants or farm out its less profitable fibre-optic components to outside manufacturers, or do a combination of all three. JDS Uniphase could also decide to buy extra manufacturing capacity. If it does opt for acquisitions, it has an increasingly strong currency for accomplishing this. JDS Uniphase shares closed yesterday on the Nasdaq Stock Market at $151 7/32, up $5 2 1/32 on the day. That gives the firm a market value of $16.7 billion U.S.

To: Bulldozer who wrote (1594)	11/3/1999 7:54:00 AM
From: Drake	Read Replies (2) \| Respond to of 24042

Hi, BD (and TD). I thank the Good Lord for you guys -- I really do! That said, I had to take this opportunity to thank BD for my new name -- the 'mindless cheerleader' (my mindlessness caused me to buy QCOM a long time ago, as well as the others listed in my profile, and today I've got a 'mindless hangover' -- I went out last night and celebrated, after QCOM's 'earnings report'). Now I'm a 'mindless wine-o' -- also thanks to BD and his exquisite taste for the bubbly. Your 'mindless friend', dc