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Technology Stocks : Vixel (vixl), a fibre channel company! -- Ignore unavailable to you. Want to Upgrade?

To: Gut Trader who wrote (364)	5/3/2000 12:55:00 PM
From: Tom Hua	Read Replies (1) \| Respond to of 377

May 3, 2000 Dow Jones Newswires Vixel Up 6%; Carryover From Tues. Lucent News - Analyst Dow Jones Newswires By Katherine Hutchison NEW YORK -- After seeing Tuesday's 73% surge in its share price carry over into Wednesday's trading, Vixel Corp.'s (VIXL) shares have slipped into negative territory. In early trading, investors continued to register their approval of the company's licensing agreement with Lucent Technologies Inc. (LU), driving its shares up to 15% higher at 16. But the stock soon lost ground, recently trading down 1/8 or 0.9% lower at 13 13/16 on volume of 3.9 million shares, compared with average daily volume of 549,000 shares. Vixel announced Tuesday that Lucent would use the company's Fibre Channel switching technology in its OptiStar product line. Although Vixel issued a press release Wednesday announcing the upgrade of its Series 7000 switches to full-fabric service, Needham & Co. analyst Glenn Hanus attributed trading activity to enthusiasm carried over from Tuesday. "Today's news was in line with what we were expecting, and should have been anticipated by anyone following the company," he said. "It's still a positive development to see it announced, but the movement is mostly related to carryover on Tuesday's positive news." Vixel should begin receiving initial revenues from the Lucent agreement in the fourth quarter of 2000 or early 2001, Hanus said. As far as how much revenue it will generate, he said it's difficult to quantify but guessed it could pull in about $500,000. "It's all margin, since there's no cost of goods or other expenses," he said. "It's good for the bottom line." Hanus added that Needham hadn't yet adjusted its earnings estimates on Vixel to account for the Lucent agreement. Beyond the financial implications, what's key for Vixel, he stressed, is the "strategic endorsement of a major OEM." "Investors had sort of given this thing up for dead," he said. "It helps galvanize people to see there is some real technology." Vixel's stock has tumbled from its high of 53 1/2 reached on Oct. 1, the day it debuted as a public company. It has since fallen hard, hitting a low of 6 9/16 on April 27. -Katherine Hutchison; Dow Jones Newswires; 201-938-5394