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Technology Stocks : Superconductor Technologies : SCON -- Ignore unavailable to you. Want to Upgrade?

To: Tom Hua who wrote (459)	2/28/2000 10:39:00 PM
From: Street Hawk	Respond to of 903

Complete Dow Jones Newswire Article: Superconductor Filter Stks Up: Segment Needs Orders 28 Feb 16:02 Superconductor filter technology is relatively new and is only now producing its first real commercial products, said Davenport & Co.'s N. Douglas Adams. Over the last three years, all three companies have sold equipment, but none have generated large orders, let alone profits. The stock market "is saying it's for real," said Adams. But it's orders from the operators that "will make it for real." Adams said operators have been absorbed with rapid technological change in the telecommunications field, including the transition to digital networks, and therefore put service on the back burner. Now, their task is to improve service and squeeze every ounce of capacity out of their infrastructures to meet burgeoning wireless demand, two goals that could create demand for superconductor filters. Makers of these filters, however, must prove the superiority and economic benefits of their technologies to wireless operators, Adams said. That's what Illinois Superconductor aims to do, said its Chief Executive George Calhoun. The ATP superconductor filter product unveiled by the company Monday revealed its effort to overcome what it considers a major stumbling block to superconductor filters' commercial success. Calhoun said wireless system operators have been slow to commit to superconductor filters because of concern with the reliability of the cryogenic component, which is required to maintain the cold temperature needed by the superconducting material. Unlike traditional filters, superconductor filters use electricity and are therefore vulnerable to power outages. "Psychologically, it's a hurdle," said Calhoun. "It's at a point in the system the operator wasn't concerned with up to now." The Illinois Superconductor product unveiled Monday is a thick-film superconductor filter with a built-in traditional filter backup system. Calhoun said the product "should take that issue off the table." The company also aimed to separate itself from its competitors with its product introduction. In a press release, Illinois Superconductor said the concept can only be used with a thick-film technology and systems using thin-film techniques will continue to require an expensive duplicate traditional backup system. Superconductor Technologies and Conductus both use thin-film technologies. Calhoun also said his company's ATP product will help address an emerging CDMA capacity crisis by allowing operators to gain back 30% to 50% of capacity lost through interference and inband noise. "The wireless industry is somewhat conservative in terms of technology adoption," said Calhoun. But he believes superconductor technology's time has come and that one day, "it will be an essential part of wireless platforms." -Riva Richmond; Dow Jones Newswires; 201-938-4046 (END) DOW JONES NEWS 02-28-00 04:02 PM