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Technology Stocks : SDL, Inc. [Nasdaq: SDLI] -- Ignore unavailable to you. Want to Upgrade?


To: mike machi who wrote (1755)6/15/2000 1:57:00 PM
From: pat mudge  Read Replies (3) | Respond to of 3951
 
I've been unable to access SI all morning. That's like being denied that first double cappuccino. :)

Whoever shook the tree this a.m. got a good deal. Stock now at 282 on 3.15M.

Okay, here's what I've found so far on GLW. These are rough notes, in no particular order, selected to show where they're positioned in the telecom side of their business.

<<<<<
First, look at how they handled NetOptix:

I --- NetOptix acquisition in which they became a fully-owned subsidiary:
freeedgar.com

CI Subsidiary, Inc. is a wholly-owned subsidiary of Corning, formed under the laws of the State of Delaware solely for purposes of acting as a party to the merger. CI Subsidiary, Inc. will merge with and into NetOptix and NetOptix will be the surviving corporation. . . .

On February 13, 2000, Corning entered into a letter agreement with Ralf T. Faber, the President of NetOptix, to clarify the terms of his continued employment after the closing date of the merger. Under the letter agreement, Mr. Faber has agreed to serve as the President and CEO of Corning NetOptix, Inc. the proposed new name of NetOptix, for a term of three years.


The company is divided into three units, telecommunications, advanced materials, and information display.

Financials, three months ended March 31, 2000 1999

Telecommunications
Net sales $ 893.4 $ 593.3


Advanced Materials
Net sales $ 264.2 $ 252.1

Information Display
Net sales $ 187.9 $ 145.7

Total segments
Net sales $1,345.5 $ 991.1

By looking at acquisitions over the past year, it's obvious this is not the old Corning:

(2) On January 28, 2000, Corning merged with Oak Industries, Inc. (Oak Industries) in a pooling of interests transaction. Oak Industries shareholders received 0.83 of a share of Corning common stock for each share of Oak Industries stock owned. Corning issued 14.8 million shares of Corning common stock and 2.7 million options to purchase Corning common shares to complete the transaction. The consolidated financial statements for the prior period of 1999 have been restated to include the financial position and results of operations of Oak Industries. During the first quarter of 2000, Corning recognized a charge of $47.0 million ($43.4 million after tax), or $0.16 per share, for one-time acquisition costs related to Oak Industries. The acquisition costs are primarily related to investment banking and legal fees of approximately $30 million. The charge also includes $17 million of severance and other termination benefits for Oak Industries corporate officers and headquarters employees.

(3) On February 2, 2000, Corning acquired the worldwide optical cable and hardware business of Siemens AG and the remaining 50% of its investment in Siecor Corporation and Siecor GmbH (the Siemens transaction). The purchase price of $1.4 billion (subject to customary purchase price adjustments) includes approximately $120 million in assumed debt and $145 million in contingent performance payments to be paid, if earned, over a four-year period. Portions of the transaction will close at various dates into 2001.

At March 31, 2000, total cash paid to Siemens approximated $1.0 billion. This acquisition has been accounted for under the purchase method of accounting. The purchase price has been allocated based on estimated fair values at date of acquisition, pending final determination of certain acquired balances. This preliminary allocation has resulted in purchased intangibles and goodwill of approximately $650 million, which is being amortized over lives of 5 to 20 years.

(4) On February 14, 2000, Corning acquired British Telecommunication's Photonics Research Center for approximately $66 million in cash. Corning recorded a charge of $42.0 million ($25.7 million after tax), or $0.09 per share, for in-process research and development costs. Remaining purchase price has been recorded as property, plant and equipment and purchased intangibles and goodwill being amortized over lives up to 9 years.

(5) On February 14, 2000, Corning announced that it had signed a definitive agreement to acquire NetOptix Corporation for approximately 12 million shares of Corning common stock. NetOptix manufactures thin film filters for use in dense wavelength division multiplexing components. Under the terms of the agreement, Corning will exchange 0.90 shares of Corning common stock for each share of NetOptix common stock. Corning will account for the transaction under the purchase method of accounting. Based on the average closing price for Corning for a range of days surrounding the announcement, the transaction is valued at approximately $2.1 billion, most of which will be allocated to purchased intangibles and goodwill. Corning currently expects purchased intangibles and goodwill to be amortized over 10 years and to be non deductible for tax purposes. A study is currently underway to determine the existence of any in-process research and development. If the study concludes a charge is necessary, Corning will record the appropriate amount in the period the transaction closes. Corning expects the transaction to close in mid-May.

(6) On May 5, 2000, Corning acquired the remaining 80% interest in NZ Applied Technologies (NZAT) not already owned in exchange for Corning common stock. NZAT is a developer and manufacturer of photonic components for optical telecommunications applications including the optical data networks industry. Corning issued 440,000 shares of common stock, with a value of $75 million at closing and agreed to issue an additional 440,000 shares over the next three years contingent upon NZAT achieving certain product development and sales milestones following the completion of the transaction. The contingent proceeds, if earned, will be recorded at the current fair value of Corning common stock when issued. The acquisition will be accounted for using the purchase method of accounting.

(7) On January 31, 2000, Corning sold Quanterra Incorporated to Severn Trent Laboratories for $35 million. In the first quarter of 2000, Corning recorded a non-operating gain of $6.8 million ($4.2 million after tax), or $0.02 per share, as a result of this transaction.

Each of these transactions supports Corning's strategic growth initiatives in the Telecommunications segment.

. . . .

A company focused on high-growth segments of telecommunications' market:

Results of Operations

Net sales totaled $1.35 billion for the first quarter of 2000, an increase of 36% over sales of $997 million for the same period in 1999. Excluding the impact of acquisitions, net sales increased approximately 30% over the first quarter of 1999. Sales growth in the first quarter was most pronounced in the Telecommunications Segment, where the impact of acquisitions and demand for Corning's premium fiber and cable products drove quarter to quarter sales growth over 50%.

First quarter

Sales in the Telecommunications Segment increased 51% over the first quarter of 1999 to approximately $900 million. Excluding acquisitions sales growth for the same period was 45%. The sales growth in the segment was led primarily by volume gains in the optical fiber and cable and photonic technologies businesses. Segment net income rose 84% in 2000 compared to 1999. The percentage increase in segment net income exceeds the increase in sales, reflecting an overall increase in segment gross margin percentage and a decrease in research, development and engineering as a percentage of sales.

Sales in the optical fiber and cable business in 2000 increased 45% over 1999 to approximately $480 million. The increase in sales resulted primarily from the impact of acquisitions and strong volume gains. Approximately $30 million of the increase in optical fiber and cable sales resulted from the following acquisitions:

. the acquisition of the optical cable business from BICC, plc and the remaining 50% interest in Optical Waveguides Australia, Pty. Ltd. in the second quarter of 1999

. the acquisition of the remaining 50% interest in Siecor GmbH in the first quarter of 2000

Excluding the impact of these acquisitions, sales in the optical fiber and cable business increased approximately 35% for the year due to volume gains of more than 50%, reflecting continued strong demand for Corning's premium fiber products. Volume of premium fiber and cable products, including Corning's LEAF-Registered Trademark- optical fiber, tripled over the same period in 1999.
Price declines ranged between 5% and 15% for Corning's optical fiber and cable products in comparison with last year's first quarter. The weighted average optical fiber and cable price in 2000 declined approximately 9% compared to 1999. The rate of price declines for cabled fiber products slowed during the first quarter of 2000 commensurate with the worldwide tightening of supply of
optical fiber.


As a result of continued strong worldwide demand for optical fiber and cable, Corning continues to produce at maximum manufacturing capacity. In the first
quarter, Corning announced an approximate $750 million expansion of its Concord and Wilmington, North Carolina fiber production facilities.
The expansions are expected to come on-line between 2001 and 2002 and increase capacity more than 50%.

Net income from the optical fiber and cable business increased more than 50% in the first quarter of 2000 compared to the same period in 1999. The percentage increase in net income is higher than that of sales because increased volume of higher margin products more than offset price declines.

Sales in the telecommunications hardware and equipment business, including the Gilbert Engineering business acquired in the Oak Industries merger, increased 59% in the first quarter of 2000 to approximately $185 million. This increase resulted primarily from a higher volume of existing products and particularly strong demand from cable television customers, offset in part by price declines and the impact of the sale of Republic Wire and Cable in the third quarter of 1999. Overall net income increased more than 75%, primarily due to volume increases.

The photonic technologies business, including the Lasertron -Registered Trademark- business acquired in the Oak Industries merger, manufactures photonic modules and components primarily for the optical amplification market. This business realized strong volume gains in the first quarter 2000 led by new product sales. Sales in this business increased approximately 90% in first quarter 2000 to approximately $175 million compared to 1999 prior period sales of approximately $90 million. The operating performance in this business improved in 2000 as a result of strong volume and productivity gains partially offset by price declines and increased operating expenses. Due to continued investment in research and development, this business continues to incur a loss, however, the overall first quarter results improved approximately 50% in
comparison to first quarter 1999. In April, Corning announced the addition of a second amplifier assembly plant in Benton Park, PA, with startup production expected in the third quarter of 2000. This expansion will more than double Corning's module and amplifier manufacturing capacity. Corning also announced a $45 million expansion of its Corning Lasertron facility in Bedford, MA that will double its manufacturing capacity in the first quarter of 2001.
. . . .

Recent news releases:
corning.com

Corning, New York, June 12, 2000 -- Corning Incorporated (NYSE:GLW) announced today that it has completed the previously announced acquisition of IntelliSense Corporation of Wilmington, Massachusetts. Corning had previously held a 33% equity ownership position in the company. A leading provider of micro-electro-mechnical systems (MEMS) software, design and fabrication, IntelliSense will operate as a wholly-owned subsidiary of Corning. It is anticipated that the company will enhance Corning?s development of optical switching products and cross-connects -- elements that will play a key role in the future development of all-optical networking.

corning.com

"We are seeing very strong volume gains in our growth businesses, similar to quarter one," said Roger G. Ackerman, Corning's chairman and chief executive officer. "We now expect revenue growth in our Photonic Technologies Division to reach 80% for the year 2000. We are continuing to focus our efforts on capacity expansions, integrating our acquisitions, and pursuing internal and external growth opportunities."

Chairman's address to annual meeting in April --- excellent summary of co's strength, esp. regarding Siecor acquisition:
corning.com

NetOptix acquisition closes:
corning.com

Quote from April shareholders' meeting:

Shareholders also approved an increase in the number of shares of authorized common stock from 500 million to 1.2 billion. The number or shares were increased to enable the company to act promptly on investment, acquisition and growth opportunities, or on proposals for stock splits or stock dividends.

>>>>

That's as much as I've gathered so far. GLW's focus seems clear and I think anyone would be blind not to recognize how serious they are in pursuing their goals.

On the other hand, today's news that LU might spin off its microelectronics' division reveals another player anxious to maximize its position in the same industry.

It must be nice being SDL right now.

Pat



To: mike machi who wrote (1755)6/15/2000 7:51:00 PM
From: pat mudge  Respond to of 3951
 
alcatel.com

<<<<
AVANTEL-MCI WORLDCOM SELECTS ALCATEL'S TURNKEY SOLUTION TO BUILD AN OPTICAL BACKBONE NETWORK IN MEXICO

Paris, June 15, 2000 - Alcatel, the world leader in optical networking, today announced the signature of a USD 72 million contract with Avantel-MCI Worldcom, the Mexican long-distance telecommunications carrier, to build a terrestrial fiber optical backbone network along the coast of the Gulf of Mexico. The award further demonstrates Alcatel's ability in offering breakthrough optical networking technology and positions the Company as prime supplier of SDH core systems to Avantel-MCI Worldcom.

The new high-speed optical network - 1,370 kilometers long - will link 10 cities from Veracruz to Cancun and will be connected to Miami (Florida) through the Cancun node, forming a ring that transports and distributes voice and data traffic between Mexico and the US. This turnkey project will enable Avantel-MCI Worldcom to undertake a major expansion of its telecommunications infrastructure in Mexico and to continue meeting the growing demand for fast data transmission services.

Alcatel will supply, install, commission and maintain the new Optinex Synchronous Digital Hierarchy (SDH) core system, which offers a wide range of cost-effective solutions including the latest IP services, as well as the new generation fiber, Teralight, an optimized dispersion fiber technology for high-capacity, long-distance applications.

"We recognize our customers' need for an extensive and competitive portfolio of services, either voice and data and we want to give them access by using innovative and competitive solutions", said Miguel Calder•n, Vice President of Avantel-MCI Worldcom.

"This contract demonstrates our ability to provide turnkey integrated solutions from fiber-optic to transmission and network management systems", stated Christian Reinaudo, President of Alcatel's Optics Group.

The link is based on the Optinex SDH multiservice platform, operating at 2.5 Gbps - upgradable to 10 Gbps - which allows the transmission of more than 120,000 telephone conversations simultaneously. The whole network is supervised by an integrated network management system, which provides efficient traffic control and routing throughout all network levels. An armor cable, buffer-tube designed with 24 fiber optics Teralight, initially transmitting data and voice at a speed of 2.5 Gbps will also be deployed. The Teralight fiber is designed for future high bit-rate technologies as DWDM with potential transmission rate up to 240 x 10 Gbps.

About Avantel-MCI Worldcom
Avantel is a telecommunications joint venture formed by MCI WorldCom and Grupo Financiero Banamex-Accival (Banacci), one of Mexico's largest financial services holding company. Avantel provides long distance and other telecommunications services in Mexico. The company is owned 55% by Banacci and 45% by MCI WorldCom and was the first Mexican company to apply for and receive a license to compete in the country's long distance market.

Avantel, incorporated in October 1994, serves business and residential customers in the $4 billion Mexican long-distance market and provides global telecommunications services and state-of-the-art products. The total number of lines in Mexico is expected to almost double from 9.9 in 1998 to 18.1 by 2003; the LD market is growing annually at an average of 11 percent and is projected to reach US$5 billion by 2003*.

The company is the first new concessionaire in Mexico to offer some of the first competitive voice, data, Internet and global products and services, has about 900,000 active customers and carries over 10 percent of the country's long distance traffic. Avantel Servicios Locales was recently awarded a concession to offer local telephony services in Mexico.
* As reported by Pyramid Research's, Telecoms and Wireless Markets and Strategies: Mexico, February 1999

About Alcatel
In November 1999, RHK, a leading telecommunications analyst firm, said that Alcatel holds a 21% share - the number one position - of the world's total transport market, which comprises submarine and terrestrial transmission systems. RHK noted that Alcatel's market-leading 37% market share in the submarine networks segment helped secure the top position in the total transport market. In addition, RHK found that Alcatel commands a 37% share of the digital cross-connect systems (DCS) segment. Cross-connect systems contain the enabling technology for operators to offer high bandwidth services. Alcatel is also cited as the global leader in terms of DWDM market share for the global market encompassing both terrestrial and submarine applications. Alcatel builds next generation networks, delivering integrated end-to-end voice and data networking solutions to established and new carriers, as well as enterprises and consumers worldwide. With 120,000 employees and sales of EURO 23 billion in 1999, Alcatel operates in more than 130 countries.

>>>>>>

TELSTRA SELECTS ALCATEL TO SUPPLY THE FIRST 32-CHANNEL DWDM NETWORK IN AUSTRALIA
The system will allow to handle one million simultaneous multimedia connections

Paris, June 8, 2000 - Alcatel, the world leader in optical networking, has been chosen by Telstra, the Australia's premier communications carrier, to build Australia's first 32-channel DWDM (Dense Wavelength Division Multiplexing) network which will link Melbourne and Sydney. This technology will be used across Telstra's inter-capital fiber optic cable.

Alcatel will supply, install and commission its Optinex 1686 WM, a state-of-the-art 32-channel DWDM system specially designed for regional and metropolitan applications. The technology will transmit data using 32 different "colors of light" at once, allowing for up to 80 Gbps of traffic to be carried over the existing fiber system. The capacity being produced will be able to handle one million simultaneous multimedia (voice and Internet) connections.

The expansion in carrier grade Terabit networks allows customers to keep pace with the rapid innovation of telecommunications. DWDM is a key technology to telecommunications companies as demand for data services continues its exponential growth.

"The project will greatly enhance voice and data communications", said Ms. Meredith Rogers, Telstra's General Manager for Core Network Development and Global Connect. "The Melbourne-Sydney project is important for Telstra because it further enhances the capability and robustness of our interstate transmission network, which is vital to the provision of voice and data communications along the eastern seaboard. Alcatel's solution will give us the capacity to steadily augment the system as traffic grows in the coming years".

"Alcatel have closely worked with Telstra to define the optimum architecture for the Melbourne-Sydney DWDM project", stated Mr. Ron Spithill, President of Alcatel Asia Pacific. "The full turnkey solution includes Alcatel's management system to allow Telstra to manage the entire network from their Global Operations Center in Melbourne. The overall system will ensure that Telstra's customers receive the highest quality of service."

About Telstra Corporation Limited
Telstra is Australia's premier communications carrier and is a world-class, fully integrated, full service provider across wireline, ADSL, HFC, satellite and digital wireless networks and platforms. It is Australia's leading ISP, has the most highly accessed family of internet portals and sites and provides entertainment and multimedia content over its broadband network and through its Pay-TV joint venture, Foxtel. Telstra has indicated its interest to expand its activities in Australia and regionally in the digital media area. Telstra has also focused its B2B and B2C activities in major industry growth areas, e.g. entertainment, health, financial services, insurance, education and travel and has a significant stake in Australia's largest e-commerce enterprise.
A top tier global carrier with fiscal 1998/99 revenue of A$18.2 billion (approx US$11.6 billion), Telstra placed 62nd in Business Week's 1999 Global 1000 ranking of the world's most valuable companies by market value. The Wall Street Journal ranked Telstra in the top 50 of 'The World's 100 largest Public Companies' in 1999.
Telstra was credited with underpinning Australia's first place ranking in a survey of 100 MNCs in 22 countries by the National University of Singapore's Centre for Telemedia Strategies (http://www.comp.nus.edu.sg/telemedia) on such criteria as regulatory environment, price, choice and service. For more information, visit Telstra on the Internet: telstra.com

<<<<
OPTICS: ALCATEL SETS NEW WORLD RECORDS FOR ULTRA LONG-HAUL TERABIT NETWORKS

DWDM breakthrough technologies substantially increase the capacity of existing fiber optic networks

Atlanta, Supercomm - June 7, 2000 - Alcatel, the world leader in optical networking, today announced that it has set two world records for DWDM transmission capacity over ultra long-haul Terabit networks. In one trial, the Company has achieved a 3,000 km transmission of 80 DWDM channels at 10Gbit/s each using Raman amplification* pioneered by Alcatel. In the second trial, the Company has demonstrated a 250 km unrepeatered transmission span with 32 channels at 40Gbit/s each. These records for transcontinental transmission were set with optical systems which will soon be commercially available, fulfilling customer needs for more bandwidth at a lower cost.

The first breakthrough will allow operators for the first time to implement ultra long-haul transmission in their networks on existing fiber infrastructures without building additional expensive intermediate terminal stations as is required by standard techniques. The demonstration concerns a ground-breaking 3,000 km reach at a 10 Gbit/s channel speed using Alcatel's commercially available 1640 OptinexTMTM DWDM transport system. The record consists in transporting 80 DWDM channels, each operating at 10 Gbit/s over a 3,000 km G.652 Single Mode Fiber (SMF). Error-free transmission is achieved through dual-stage hybrid Erbium/Raman amplifiers spaced out of 80 km each, the same spacing that is already found in today's long-haul networks. This would allow the transmission of the information from a one mile high-book from San Francisco to Chicago over a single fiber in one second.

The second breakthrough demonstrates the viability of multi-wavelength 40Gbit/s transmission in existing infrastructures, and is key to the rapid development of terrestrial and coastal networks. The demonstration concerns the longest single-span, unrepeatered transmission distance (250 km) ever achieved for 1.28 Tbit/s capacities on standard silica core fiber using 40 Gbit/s channels. To achieve such a performance, two key technologies were used: Raman amplification, distributed along the span, and enhanced large-effective-area fibers, which minimizes nonlinear power conversion and improve receiver sensitivity. The use of 40Gbit/s as the channel granularity enables a four-fold reduction in channel usage, which yields a substantial reduction in the overall cost of the network.

"With these major achievements, Alcatel demonstrates that it is at the forefront of optical technologies. Not only is Alcatel the only supplier to offer a complete portfolio of optical networking solutions but the Company also consistently sets the pace for technological breakthroughs", said Christian Reinaudo, President of Alcatel Optics. "These experiments represent an important milestone in the development of ultra long-haul DWDM systems having capacities in excess of 1 Terabit/s. They also demonstrate our commitment to help our customers quickly expand their services by delivering the most bandwidth at the lowest cost."

*The Raman amplification is a technique used to obtain optical amplification in the line-fiber itself via high-power optical pumping. This amplification is based on silica fiber material and pump photons interaction. It allows to master the non-linear effects in the fiber and, as a matter of fact, to increase the distance, or the capacity of a link between regenerator terminals. Such a technique is used for longer span and higher capacity as the channel granularity than in conventional optical amplification. The Raman amplification is already used, for commercial traffic, in long-haul networks of Alcatel.