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To: Bill Harmond who wrote (99211)	4/6/2000 1:58:00 AM
From: Mark Fowler	Read Replies (1) \| Respond to of 164684

William i'm really glad to see this come true from earlier reports i've read the optical switching market will be huge. Prudential's new report on JDSU: EQUITY RESEARCH JDS UNIPHASE APRIL 5, 2000 JDSU: ACQUIRES CRONOS INTEGRATED MICROSYSTEMS FOR $750 MM IN STOCK; CRONOS? MEMS TECHNOLOGY FILLS IN A KEY PRODUCT GAP AT JDSU Subject: JDS Uniphase (JDSU?$107)-OTC TELECOMMUNICATIONS EQUIPMENT COM EPS INI OPINION Current: Strong Buy/SBI Analysts: John H. Butler (212) 778-1488 Prior: Nancy H. Wu, CFA (212) 778-8929 Risk: High 12-Month Target Price: $188 Ind. Div.: $0.00 Yield: NM Shares: 750.0 mil. 52-Wk.Range: $153-$12 EPS FY Year P/E 1Q 2Q 3Q 4Q Actual 06/99 $ 0.17 629.4X $ 0.03 $ 0.04 $ 0.04 $ 0.06 Current 06/00 $ 0.37E 289.1X $ 0.08A $ 0.09A $ 0.10E $ 0.11E Current 06/01 $ 0.55E 194.5X $ 0.12E $ 0.13E $ 0.15E $ 0.16E Yesterday morning, JDSU announced that it entered into a definitive agreement to acquire privately-held Cronos Integrated Microsystems for $750 MM in stock. With an annual revenue run rate of approximately $10 MM, Cronos is a relatively small acquisition for JDSU but a strategically important deal. The acquisition of Cronos fills in a key hole in JDSU?s product portfolio with the addition of MEMS-based optical switching products. In our view, the market for optical switches is in the very early stages of emerging and so, this deal is particularly timely for JDSU. Management hosted a conference call yesterday morning to review the details of the acquisition. This transaction fills in a key gap in JDSU?s product line. Cronos is a leading manufacturer of MEMS (micro-electro-mechanical systems) devices, which are mechanically-controlled microstructures used to switch, cross-connect, add and drop wavelengths entirely in the optical realm. Importantly, MEMS technology can be incorporated into a broad range of optical modules including optical switches, attentuators, gain equalizers, dispersion compensators and programmable add/drop modules. Despite this broad range of potential applications, we believe that JDSU is most interested in using Cronos? MEMS technology in the development of optical switching products. Currently, JDSU?s switching products include polymer- and opto-mechanical-based switches and until this deal was announced, JDSU lacked a MEMS-based optical switching solution. We believe that MEMS is beginning to gain broad acceptance as the technology of choice for optical switch developers. Relative to other optical switching technologies, MEMS scales well which is a key advantage of this new technology. As a result, MEMS devices are now being used in the design of large switch matrices, which are used in large systems designed to manage traffic in the network core. Going forward, we believe that MEMS technology will figure heavily in the design of optical switches and cross-connects. According to market researchers, the market for MEMS devices at the component level could grow to a $1 billion market opportunity by 2003. For our part, we believe that the market for optical switching systems will grow to a $5 billion market by 2003. We are leaving our fiscal 2000 and 2001 estimates unchanged. While Cronos is currently shipping product, the market for MEMS technology is still in the early stages of emerging. As a result, we expect this transaction to be only mildly dilutive to our fiscal 2000 EPS estimate by less than a penny. Having said this, we are maintaining our FY00 estimate of $0.37 on $1.3 billion in sales, as we believe that any dilution from this deal is likely to be off-set by continued strength in JDSU?s core business. We are also maintaining our fiscal 2001 estimate of $0.55 on $2.2 billion in sales. On the conference call, JDSU?s management also provided an update on the status of its pending merger with E-TEK Dyanmics. On April 2, JDSU announced that the Department of Justice (DOJ) requested additional information from JDSU for its pending acquisition of E-TEK. Despite this second request, JDSU continues to maintain that this deal will close in June or July of this year. While it is difficult to predict the DOJ?s ultimate decision regarding this proposed merger, we believe that if the DOJ includes captive suppliers (i.e., Nortel, Lucent, Alcatel and others) in its definition of the optical components market, than this deal stands a good chance of getting approved. In summary, we view the acquisition of Cronos as a strong addition to JDSU?s growing product portfolio. In the long run, we believe that MEMS technology will emerge as a key enabling technology for true optical switches. As a result, the addition of Cronos should significantly enhance JDSU?s efforts to develop products for this new emerging product market. Additionally, this merger is consistent with JDSU?s strategy to broaden its product portfolio, enhance its modules production capability and add to its overall manufacturing capacity. As a result, we continue to rate the shares of JDSU Strong Buy with a 12-month target of $188.

To: Bill Harmond who wrote (99211)	4/6/2000 9:04:00 AM
From: Glenn D. Rudolph	Respond to of 164684

My operating system is between me and my wife. Whatever you do do not visit my site;-)

To: Bill Harmond who wrote (99211)	4/6/2000 10:18:00 AM
From: stockman_scott	Respond to of 164684

Dell Builds a Better Dot-Com Model By Chet Dembeck E-Commerce Times Columnist April 6, 2000 <<This week, when Dell Computer Corp. unveiled its plan to sell computers that manage networks and data storage technology online, the company once again demonstrated why it continues to be such a strong e-commerce player. By adding "back office" technology to its offerings, Dell is hoping to cash in on one of the fastest growing segments of business computing in the new economy. Moreover, if the Round Rock, Texas-based computer reseller is successful in the enterprise market, some analysts predict Dell could easily recapture the historic growth rates that made it a Wall Street darling for years. Higher Growth Areas Earlier this year, Dell warned investors to expect growth rates in the low 30 percent range. Part of the company's problem is that the desktop market is somewhat saturated. By offering a line of server appliances that are reasonably priced and tailored to limited tasks, Dell is making the right move at the right time, say industry observers. The appliance server market is expected to grow from $740 million (US$) market in 1999 to $11.5 billion by 2004, according to International Data Corp. As Dell expands into the enterprise market, analysts expect the e-tailer to follow with an elaborate plan for providing a host of products to be used by small and medium businesses that are just beginning to build their Internet infrastructures. ConvergeNet Acquisition Makes Sense Dell's latest strategy explains why the company gobbled up storage management software maker ConvergeNet Technologies Inc. in October. Dell's uncanny ability to adapt itself and take advantage of the next big thing is one reason the company pumped out earnings of more than $1.4 billion in 1999. More significantly, in an era when money-losing Internet companies such as Amazon.com are still elevated to pedestals by mesmerized analysts and stockholders, it makes sense to turn one's attention from their losing ways to Dell's winning model. From day one, Dell was in business to make money rather than to burn cash. More Effective Distribution System The company's founder, Michael Dell, started college as a pre-med student, but found time to establish a business selling RAM chips and disk drives for IBM PCs. Dell bought his products at cost from IBM dealers who, at the time, were required to order PCs at large monthly quotas that frequently exceeded their demands. Dell resold his stock through newspapers at 10 to 15 percent below retail, using his dorm room as a warehouse. By April 1984, Dell's computer components business was grossing about $80,000 a month -- enough to persuade him to drop out of college. What Was His Secret? By eliminating the retail markup, Dell was ultimately able to sell his PCs for 40 percent less than IBM brick-and-mortar dealers and still make money. Before long, Dell began selling his products online and the rest is history. While Dell's success formula is simple enough to be followed by most of today's dot-coms, for some reason it just does not seem sexy enough to many of the twenty-something CEOs running the startups. They appear to be more interested in planning IPOs and personal exit strategies than in building online businesses that will turn profits for decades to come. Still, no matter how many of them fail or bail, Dell will simply adapt to the next big thing and continue to thrive. That's why I believe that Dell -- not Amazon.com -- is the dot-com model to emulate.>> ecommercetimes.com