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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 (6970)	5/18/2000 6:45:00 PM
From: JayPC	Read Replies (1) \| Respond to of 12823

Hi mike, here is a news release that I ran across last week that alerted me to the problem. It's from Shaw Cable, @HOME's second largest subscriber base. Shaw Communications Inc - Shaw experiences growth of Internet customers Shaw Communications Inc SJR.B Shares issued 178,364,270 2000-05-12 close $33 Friday May 12 2000 Mr. Ron Rogers reports Shaw would like to advise the market on the status of its Internet customer growth in the context of a general shortage of cable modems supplied by Motorola (one of two cable modem suppliers to Shaw) and the recent swap of cable assets with Rogers Cablesystems. Although demand for broadband Internet access remains strong, like most North American cable operators, Shaw has been affected by a general shortage of Motorola cable modems. The company expects that the supply of Motorola modems will continue to fall short of requirements into the next quarter. On the positive side the supply of Terayon modems has continued at the previous rate and Shaw is looking at opportunities to increase the deployment of Terayon modems to offset the Motorola modem shortfall. As reported in the company's second quarter release, it was adding approximately 500 new Internet customers per day or about 30,000 a quarter. As a result of modem shortages, the company estimates the quarter will see approximately 20,000 new Internet customers. These circumstances are clearly temporary and Shaw believes it will be able to make up the shortfall over the balance of the calendar year. The financial results for the Internet division for the third quarter will probably still meet or exceed market expectations. As a result of increased efficiencies and lower marketing expenses, it is estimated that the Internet division will generate $10-million of operating income before interest, taxes and depreciation, an increase of 44 per cent over the second quarter. Shaw's core cable television business, which represents the vast majority of the value of Shaw Communications, has not been affected by any of these circumstances. As it concerns the exchange of cable systems with Rogers Communications, both parties have agreed to renew efforts to further grow their respective Internet customer bases during this transitional period. There had been a slowdown in marketing efforts in April. Based on information available at this time, it should be noted that Shaw expects to gain approximately 8,000 Internet subscribers as a result of the system swaps. This gain is not included in the anticipated shortages noted above. (c) Copyright 2000 Canjex Publishing Ltd. canada-stockwatch.com old url (better for printing) I have a feeling the part in italics (my own) is kind of like when your cable company says they will be at your home before noon. Will they? Remains to be seen. Why Can't Motorola keep up? I'm not sure, lml? Regards Jay