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

To: Jerryco1 who wrote (6230)	11/24/1999 12:20:00 PM
From: MikeM54321	Respond to of 7342

Re: The loss of the AN2100 Sprint Contract "The flip side to this news is that it furthermore confirms that the "old world" SONET based architectures, which are Tellabs' mainstay, are not going away quickly and continue to grow in demand." Yeah. Ain't it grand. That good old 100 year old, trillion dollar network has a lot of life left in it for the cockaroach, Titan 5500. Pretty amazing. "Although it might be hard to see, the Sprint decision actually increases our confidence in fourth quarter and 2000 forecasts because the potential incremental demand for SONET digital cross connects is likely to easily make up for the loss of AN2100 sales." Although there was no doubt the Titan 5500 was going to make up for any projected revenues the AN2100 was estimated to bring in, no one said Sprint's decision to drop the AN2100 was going to bring in more 5500 sales to their network. But if I re-read his comments, I suppose that is not what he is saying. I believe it must be his speculation because TLAB did not comment on that direct question from what I remember. This was very bad news for TLAB because the AN2100 was specifically designed for the Sprint network, yet they are choosing the Nortel route to migrate their backbone to Voice/ATM in a more cost effective manner. It will be very interesting to see where the upgraded AN2100 product, the 2100GX will end up. At this point it's too early to speculate but I'm sure TLAB is pushing hard to find a customer for it. All in all, it was excellent damage control by TLAB management. They did a straight forward, honest evaluation of what happened and what is going to happen next. It does put more pressure on them to execute on their Titan 6500 machine. MikeM(From Florida)