Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Bruce Byall who wrote (8412)	4/4/2000 5:44:00 PM
From: NTT	Read Replies (1) \| Respond to of 24042

Text of KK's CNBC interview from a few mins ago: TED: JDS UNIPHASE CONTINUING ITS SHOPPING SPREE, BUYING PRIVATELY HELD CRONOS INTEGRATED MICROSYSTEMS, WHICH DEVELOPS AND MANUFACTURES THE TECHNOLOGY USED IN SWITCHES OF FIBEROPTIC NETWORKS. THE PRICE TAG: $750 MILLION IN STOCK. THE STOCK WAS HIT TODAY, ALONG WITH THE REST OF THE TECH SECTOR. JOINING US LIVE FROM STANFORD, CALIFORNIA IS KEVIN KALKHOVEN, CO-CHAIRMAN AND CEO OF JDS UNIPHASE. WELCOME. I MADE A CALL TO YOUR OFFICE TO MAKE SURE I PRONOUNCED IT CORRECTLY AND I DIDN'T. >> NO PROEM, TED. TED: CHRONOS MAYBE. >>MEMs TECHNOLOGY. WHAT IS IT AND WHY DO YOU HAVE TO HAVE IT? >> WELL, AT THE MOMENT IT'S IMPOSSIBLE TO GET AN ALL-OPTICAL NETWORK. YOU HAVE TO CONVERT LIGHT BACK INTO ELECTRONICS AT SOME POINT, IT'S TYPICALLY AROUND THE SWITCHES. ME Ms TECHNOLOGY IS A METHODOLOGY BY WHICH IT'S IMPOSSIBLE TO USE TINER MICRO MIRRORS TO IN FACT SWITCH THE LIGHT FROM ONE PIECE OF FIBER TO ANOTHER, SO IT'S VERY IMPORTANT LINK AS WE GO FORWARD TO THE ALL- OPTICAL NETWORK. TED: I WATCHED YOUR STOCK TODAY WHEN I KNEW WE WOULD BE TALKING TODAY, AND WHEN I SAW IT DOWN AT 84, I WONDERED WHAT THAT MIGHT DO TO THIS DEAL. INDEED AS I UNDERSTAND, THE AGREEMENT WAS BASED ON THE CLOSING PRICE YESTERDAY AT 111. DOES THAT STICK? DOES IT CHANGE? HOW WILL THIS DEAL ULTIMATELY BE DONE ESPECIALLY IN LIGHT OF THIS VOLATILITY? >> THE DEAL WILL BE DONE, I MEAN WE CAN EXPECT THE MARKET TO BE VOLATILE FOR SOMETIME. BUT THERE ARE MOVING AVERAGES BUILT INTO THE FINAL SHARE COUNT SO WE'RE CONFIDENT IT WILL GO THROUGH. TED: WHAT'S YOUR UNDERSTANDING OF WHEN THE DEAL IS LIKELY TO CLOSE? WHEN WILL IT BE ACCRETIVE TO EARNINGS? I UNDERSTAND SLB DILUTIVE A PENNY A SHARE FOR THE NEXT FEW QUARTERS. >> I DON'T THINK ITS IMPACT WILL BE KNOWABLE IN TERMS OF AN EARNINGS IMPACT. THE THEORY IS WILL BE -- >> NEUTRAL? >> EFFECTIVELY NEUTRAL BECAUSE IT'S SO SMALL IN THE OVERALL PICTURE OF THINGS IN TERMS OF THE FINANCE BUT REALLY IMPORTANT IN TERMS OF THE TECHNOLOGY. TED: LET ME ASK YOU, ARE YOU NOT WORRIED ABOUT DOING THIS DEAL WITH CROWE KNOWS AFTER YOU HAVE A REQUEST FOR ONCE, A SECOND REQUESTS REQUEST FROM THE SECOND JUSTICE DEPARTMENT, A HART REVIEW, DOES IT WORRY YOU THIS DEAL MAY ALSO GET SCRUTINY THAT YOU MAY NOT WANT HERE FROM JUSTICE? >> NO, THIS DEAL DOESN'T HAVE TO GO THROUGH THE JUSTICE. IT'S TOO SMALL. ALSO IT'S SO FAR OUT OF THE TECHNOLOGY THAT WE HAVE JOINTLY BETWEEN E-TEK AND OURSELVES WE DON'T ANTICIPATE THIS WILL BE AN ISSUE. TED: THEY HAVE USED THE WORD SHOPPING SPREE ON ALL OF THE ACCOUNTS TODAY, TO DESCRIBE THIS, THE CRONOS DEAL, DOES THAT WORRY YOU? THERE ARE THOSE WHO TALK ABOUT THE SHOPPING FREE THAT MICHAEL ARMSTRONG WENT ON AT AT&T THAT HE BIT OFF MORE THAN HE CAN CHEW. CAN YOU DYE DIGEST THIS? >> YES, WHAT WE HAVE BEEN DOING IS UNLIKE SAY AT&T, WE'VE ACTUALLY BEEN BUYING TECHNOLOGY THAT WE INVEST IN AND BRING TO THE MARKETPLACE, IT'S VERY MUCH IN LINE WITH WHAT OUR CUSTOMERS WANT, TED. SO WE'RE PRETTY COMFORTABLE WITH THE SITUATION. WE HAVE A VERY GOOD TRACK RECORD DATING BACK OVER MANY, MANY YEARS NOW OF DOING THESE ACQUISITIONS AND BRINGING THEM TO SUCCESSFUL PROFITABILITY. TED: E-TEK DEAL DONE ON THE 17 OF THIS OF JANUARY, 2.2 SHARES OF JDS FOR EACH E-TEK SHARE, ASSUMING THE JUSTICE DEPARTMENT TO CLEAR THIS, WHEN DO YOU EXPECT TO THE CLOSE? >> WE SAID WHEN WE ANNOUNCED IT IN JANUARY WE ANTICIPATED A JUNE, JULY CLOSE, WE'RE STILL IN THAT ENVIRONMENT. TED: YOUR EYES STILL OPEN FOR FURTHER ACQUISITIONS? >> I THINK IN A RAPIDLY MOVING TECHNOLOGY FIELD LIKE THIS, THERE ARE ALWAYS BRIGHT IDEAS YOU HAVEN'T THOUGHT OF AND YOU CAN'T HAVE A NIH. TED: KAECHB KALKHOVEN, THANK YOU VERY MUCH FOR JOINING US. >> OUR THANK TO KEVIN KALKHOVEN FOR JOINING US TODAY.