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

To: Glenn McDougall who wrote (3114)	12/17/1999 7:34:00 AM
From: Glenn McDougall	Read Replies (1) \| Respond to of 24042

JDS' happy returns Investors toast $125M expansion plan, mainly more local jobs By KEVIN BELL, Ottawa Sun JDS Uniphase Corp. said yesterday it will spend $125 million US on a massive worldwide expansion that will create thousands of jobs -- most of them in Ottawa. The company told exuberant shareholders at its annual general meeting the expansion is necessary to meet explosive growth in the fibre-optic equipment market. The expansion will add 600,000 sq. ft. of manufacturing space throughout the company's global operations. But the single largest expansion will be in Ottawa, where 360,000 sq. ft. will be added in a third phase of its campus. Company officials could not estimate how many jobs the expansion will bring to the city, but said the additional positions will be proportional to the extra space. Since the expansion will increase JDS' Ottawa space by over 40%, more than 2,400 jobs may be created based on current employment of 6,000. However, introduction of automation could reduce that figure. Company president Jozef Straus said the investment reflects JDS' confidence in the growth of fibre-optic telecommunications. "As we enter the new millennium, we believe that this expansion, among other things, will better position JDS Uniphase to serve the needs of its customers and to seize the future opportunities the industry will offer," he said in a statment. Over 500 shareholders attended yesterday's standing-room-only meeting, the first since JDS Fitel announced Jan. 28 its merger with San Jose's Uniphase Corp. Since then, the share price shot up from less than $75 in January to pass $400 last month before settling back slightly. After yesterday's announcement, the stock gained $29 or 8.5% to close at $369 on the TSE. The stock split two-for-one in September and shareholders yesterday approved another two-one split to take place Dec. 22. The meeting was punctuated by expressions of gratitude from shareholders yesterday, as well as loud applause and whistles when Straus and CEO Kevin Kalkhoven were introduced. Kalkhoven captured the tone of the meeting by delivering his address capped with a Santa hat. With more than 8,000 employees at 19 sites in eight countries, JDS generates more than $1 billion in revenues and is growing rapidly. Company officials told analysts recently JDS Uniphase is expecting 80% growth this year. Kalkhoven said the company is poised to soon cross the $2-billion threshold. "We are in the middle of a vortex of activity that is quite incredible." The massive expansion is the third phase of a four-phase strategy to capitalize on explosive growth in the Internet sector and the need to broaden bandwidth through fibre-optic technology. The company's first phase was the development of a broad product portfolio. The second phase involved the manufacture of modules that combined various products to allow customers like Nortel Networks to add bandwidth faster and cheaper. One study shows the market for fibre-optic components and modules will grow from $5.5 billion this year to $21.3 billion by 2003 -- "a huge, huge opportunity for your company," Kalkhoven told shareholders. He said the company is keeping its fourth phase under wraps so competitors don't get wind of it.