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To: IA who wrote (27058)	6/18/2000 11:13:00 PM
From: investingNideas	Respond to of 68214

More on RTT and Corvis opticalalert.com

To: IA who wrote (27058)	6/19/2000
From: Johnny Canuck	Read Replies (2) \| Respond to of 68214

Inder, In general, Corvis is a lot like the ONIS IPO, this is a whole lot of money for very little in sales. There are two outstanding contracts of $200 million if the trials succeed with the carriers and QWST is making noises about using their product though no dollar amount was given. Some there at least will be a big revenue ramp if and when then get approved. In different times I would say this was a worthwhile risk, as an company would not go to IPO without knowing that the next quarter was going to be great, but given the market environment I am not sure this is not a way to strike while the IPO market is still there. I don't see any real heavy hitters in the underwriting department that would guarantee success. The head of CORVIS is one of the founders of CIEN, but I don't have a feel for how good their sales team is and how connected they are. Ultimately in telecom, vendors buy from people that they know and have worked with for years. As a risk to the whole sector, it looks like NT has gained a dominant market share. Keep in mind NT bought Qtera (long haul optical) and Xros(photonic switching) and they make some of their own optical components too so they can be a end to end vendor. On the optical switching side, no one I know has an optical switch that will switch as photonic speeds. All use a mechanical and chemical process that has a finite activation time. Projects for an all optical switch as suggested by AMCC management is 3 to 5 years away. As a result the reasons to deploy some of the optical components is not a great. Being able to transmit further without repeats is a benefit that will pay for itself in a very short time and will realize efficiency now. I think that competition is just starting to heat up and that all companies will have a share of the pie initially and it is a pretty big pie. Some for the next few years this should be a volatile sector. But, ultimately we will see a consolidation like in the networking sector. For now, I expect CORVIS to be a good trading stock. Buy some time after the IPO hype is over and then sell as the quite period ends. Re-enter some where down the road when the picture is a little clearer. Harry ************************* JUNE 15, 2000 Nortel Extends Optical Lead lightreading.com JUNE 16, 2000 Corvis-Sycamore Battle Looms lightreading.com JUNE 09, 2000 Doctor Huber's Revenge lightreading.com CORVIS CORP (OTC:CORV) COLUMBIA MD Business Description: Networking Designs, manufactures and markets products that enable a fundamental shift in the design and efficiency of backbone networks Comments: Underwriters: CS First Boston , Robertson Stephens , B of A Securities, Chase H and Q , JP Morgan, CIBC World Markets Summary: We design, manufacture and market products that enable a fundamental shift in the design and efficiency of backbone networks by allowing for the transmission, switching and management of communications traffic entirely in the optical domain. Our products enable the creation of all-optical backbone networks that support transmission over long distances and eliminate the need for expensive and bandwidth-limiting electrical regeneration and switching equipment. By deploying our products, service providers can significantly reduce costs, increase network capacity and more quickly and efficiently provide new services. We believe that service providers will increasingly turn to optical technologies because traditional electrical and electrical/optical technologies and the existing network architecture do not adequately address service providers' rapidly increasing capacity and reliability requirements in a cost effective manner. To date, we have not recognized any revenue. We currently have two customers, Broadwing Communications Services, Inc. and Williams Communications, Inc., each of which has agreed to purchase $200 million of our products and services over a two-year period, subject to its successful completion of field trials. We shipped, installed and activated a laboratory trial system for each of these customers during the first quarter of 2000. We began shipping field trial systems to them during the second quarter of 2000, and we expect those trials to be completed during the second half of 2000. We are in discussions with other service providers to begin field trials and to purchase ourproducts. Our products offer service providers several key competitive advantages and benefits, including: . Reduced Capital Expenditures. By deploying our products in backbone networks, service providers are able to dramatically reduce their capital expenditures. Our all-optical network products eliminate the need for costly electrical regeneration and switching equipment in backbone networks, reducing the amount of equipment required for network deployment and expansion. Our products support transmission of optical signals up to 3,200 kilometers compared to 400 to 600 kilometers for traditional equipment. . Speed to Deploy and Increase Capacity. Backbone networks constructed using our products require significantly less equipment than used in existing networks, reducing network complexity as well as the number of tasks that must be performed to install our products. Once installed, additional transmission capacity can be added simply by inserting transmitters and receivers at the end points of a desired transmission path. No additional equipment is required along the transmission path, eliminating the need for lengthy, costly and manually-intensive installations. . Rapid Provisioning of Services. Using our products, service providers can rapidly and cost-effectively provision services for their customers. The provisioning of services is performed remotely by using our network management software from a service provider's network operations center, eliminating the need to manually modify equipment along a transmission path. . Reduced Operating Expenses. Our products reduce operating expenses by dramatically reducing the amount of equipment in backbone networks and reducing costs associated with maintaining equipment and spare parts inventory and providing electrical power and facilities to operate and house the equipment. The reduction in equipment in backbone networks also reduces the complexity and cost of network management. . Compatibility with Traditional Networks. Our products are compatible with traditional network equipment, allowing service providers to selectively migrate to an all-optical backbone network, while continuing to use their existing networks. Type: IPO Expected: no timing In Registration: 45 days Our Opinion: data pending Value (Mlns): $400.000 Deal Size: Price Range: tba Prev Close: Stub Period: 3 mos ended 4/1/00 Revenue (Mlns): $0.000 Income (Mlns): ($26.831) Post Offering Shares: excerpt from www.ipopros.com