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

To: t2 who wrote (4931)	1/21/2000 5:36:00 PM
From: taxman	Read Replies (2) \| Respond to of 24042

excerpt from value line report dated today. what is metro DWDM? regards JDS Uniphase is experiencing phenomenal growth. Demand for optical networking equipment continues to out-strip supply. In fact, the thirst for optical products by telecommunications compa-nies is probably JDSU?s biggest problem. The company has been busy increasing manufacturing capacity to keep up with orders. Meanwhile, Lucent, a large cus-tomer of JDSU?s, announced it would miss Wall Street estimates, due to a lack of ca-pacity to meet demand. We do not think Lucent?s shortfalls will significantly hurt JDSU results, though, as other original equipment manufacturers likely picked up the slack. As a result of the dynamic growth in this sector, we have raised our 2000 earnings estimate to $0.75 a share from $0.60 a share (adjusted for stock split on 12/29/99), or about double ?99 results (fiscal years end June 30th). The company has been on a buying spree. JDSU has committed to spending $125 million for global capacity expansion. In addition, the company completed its ac-quisitions of SIFAM, Oprel Technologies, and Epitaxx. These deals increase JDSU?s manufacturing capacity and expand its technological base for future products. Furthermore, the company has announced its plan to buy Optical Coatings Laboratory. All acquisitions have been stock transactions. With its stock trading at a rich premium, JDSU is able to use its stock as currency when acquiring a compa-ny. And should its stock price fall from its stratospheric levels, the company?s strong balance sheet, with nearly $1.0 billion in cash and no debt, can be leveraged to con-tinue its acquisition strategy. The metro DWDM market could take off soon. The landscape for optical equip-ment seems to be shifting towards metropolitan optical networks versus long haul networks. Meantime, the industry is already doubling every year, and the metro market should fuel more growth. JDS Uniphase stock is top ranked for year-ahead performance. ¸ 2000, Value Line Publishing, Inc.