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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here -- Ignore unavailable to you. Want to Upgrade?

To: MikeM54321 who wrote (6490)	4/8/2000 4:07:00 PM
From: MikeM54321	Read Replies (1) \| Respond to of 12823

Re: Tellabs(sym:TLAB) Q1 2000 Warning CC Thread- Not really much of a warning in this CC. It was more like a typical Q1 Earnings CC. I doubt I'll even listen in on the actual CC on coming up April 18th. Lot's of info was given that would be of general interest to Last Mile investors. A couple of items of note. Birck(TLAB's CEO) was pretty excited about taking their typical DXCS(cross-connect) product and dropping it into the customer building. Essentially turning the DXCS into one heck of a big CPE product. He said it was going well because the customer wouldn't have to purchase separate add-drop muxes and saved money. My guess is incumbents must like this to because it saves space in the CO. My second guess is games must are probably being played in pricing this kind of arrangement. It opens up another slice of the market for TLAB and benefits the incumbent. I think, but am not sure, Birck hinted they were doing price breaks for this set-up. Now what I found of most interest is the good old legacy infrastructure is still going strong. The new TITAN 5500 cabinets sold in Q1 2000 broke ALL historical sales records. Birck said there is a lot of, "iron," out there. All that iron spells good things because they have to be filled with line cards as services roll out. In other words, as broadband access rollout, it directly benefits the old cockaroach, the TITAN 5500. Analyst and investors have been routinely knocking Tellabs for years in regards to their digital cross-connect product. I'm guilty of being very concerned about it myself. We've have two or three discussions about this legacy product in the last two years on this thread. But here it is, two years later and that darned 5500 ends up breaking all historical records. Hard to believe how powerful legacy still appears to be. The other point of interest to Last Mile investors, is the strength of Cablespan. For those that don't know, it's Tellabs HFC product line that is cable telephony(circuit-swtiched variety) capable. TLAB boosted projections of doubling Cablespan revenues in 2000, to TRIPLING sales. They hinted it's due to AT&T's local cable telephony plans, but didn't come right out and say it. -MikeM(From Florida) *********************** -TLAB raised 2000 revenues from $3-$3.1 billion --> $3.25-$3.5 billion -Netcore/Salix projections? No comment. -New TITAN 5500 sales in Q1 strongest in company history. -B:B is strong. Greater than one. [Don't believe I've heard them ever say this before?] -Capacitors caused them to miss Q1 bottom line growth. Can't get enough of them and prices are being raised. -No problems with ASICs supplies. -Strong Cablespan growth dragging down margins. -Cross Connects will do $354 million. Up 39% yr-yr. -Martis will do $101 million. Flat, I think? -Cablespan will do $53 million. -Echo Canceller will do ?. I missed it. But it's flat. -TITAN 532L will do $38 million.