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

To: pat mudge who wrote (522)	11/11/1999 3:23:00 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 659

Pat, >>the company sees their Tellium stake as a key asset. (Tellium >>currently shipping on $250 m contract with Exant for LU.) That's a key change in the management position. That's good to hear. The old management did not seems to know what to do with the stake after they shut down their 980 nm pump laser program. >>. Instead, they're focusing on the metro market. He also mentioned >>having fiber products for the 10 gig ethernet market. "We'll >>partner with major networking companies." The metro market has been slow to evolve as you probably know from CIEN reports. The key is that it is difficult to recover the cost of deployment from consumers and small businesses in that short haul market. Most of the explosive growth has been in the backbone where the carriers can recover cost more quickly as they are selling bulk contracts for capacity. LU and NT have reported 100 percent year or year growth in the long haul sectors. >>Company has $25.9 million in cash, are cash positive (and going >>up), with no debt. That is about double what I remember, the sale of Avitec must had brought more than I thought. They have always had virtually no debut. I give the old management credit for that. >>Photodiodes will be up 400% by the end of the year. Building >>transceivers for OC-192. They're moving from being 85% in broadband >>HFC where growth is in the 25 - 30% range to highspeed telecom >>where growth is 75-80%. Interesting, let's see if they can execute. >>They're currently in qualification testing with 5 vendors, all >>names I would recognize. The telecom market tends to be different from the HFC market. Because of the size of the contracts, concession are demanded and expected, let's see if the ORTL sales force can adapt. >>Hockey stick growth one year out. I don't have a feel for the new management yet, so I don't know how conservative they are with estimates. Hopefully, they know how to play the analyst game better than the old management. The old management was brutally honest which I respected, but it left room for very few upside surprises. Harry