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

To: jghutchison who wrote (2074)	7/6/2000 6:18:52 PM
From: pat mudge	Respond to of 3951

A few more links to Southern Cross Cable network: Press releases from October 1998: fujitsu.co.nz fujitsu.co.nz fujitsu.co.nz Dow Jones release re: possible expansion: July 5, 2000 NZ Telecom Looks Ahead To Further Broadband Cable Needs By TRACY WITHERS WELLINGTON -- Telecom Corp. of New Zealand (NZT) is starting to contemplate the requirements for a second submarine fiber optic cable to North America, even before the first one is completed. Telecom Network International General Manager Anthony Briscoe told Dow Jones Newswires Wednesday "planning" of Southern Cross II would be too "grandiose". "We're thinking about planning," he said. Southern Cross Cables Ltd. is 50% owned by Telecom. Other partners are Cable & Wireless Optus Ltd. (A.CWO) and MCI WorldCom Inc (WCOM). The cable links New Zealand, Australia and Calif. in a fiber ring which will be ready for service in November. Briscoe said while the original planning for Southern Cross was done by TNI, he is no longer involved in the project. TNI will be a major customer of Southern Cross when the cable is ready, as well as a supplier of network management and termination switches. But he said it is obvious that demand for bandwidth will increase. "I think it is fair to say that some telcos have artificially constrained development of applications that utilize the broadband," he said. This is because the technology wasn't available, costs were too much. As unit costs come down, and technology to increase capacity emerges, there is going to sufficient capacity available for new applications "to come off the shelf" that will use that capacity, he said. "The only thing I know is that any forecasts about future demand are wrong," he said. The secret to accurately predicting the construction of Southern Cross II is to look at emerging technology, rather than any benchmark such as Southern Cross I reaching 50% capacity. "You could look at the cable and say there is plenty of capacity, then one new technology could come along and fills that up," he said. But planning has to start now as it requires landing permits, ships, construction of the cable and so on, he said. "These cables don't just happen," he said. Planning for Southern Cross I began in 1995. Unsurprisingly Briscoe is a huge fan of the opportunities that increased broadband capacity to New Zealand offers. "It will change the way New Zealand thinks about business. It all goes toward the vision of a smart country. We're talking of a paradigm change," he said. As an example he said Southern Cross has the capacity to download two full length movies in seconds. As movies become digitalized this raises the possibility of cinemas eliminating projectors and running a "data show" via personal computer and downloads from the U.S. -By Tracy Withers, Dow Jones Newswires; 644 <<<< minters.com.au it.fairfax.com.au

To: jghutchison who wrote (2074)	7/6/2000 7:40:09 PM
From: pat mudge	Read Replies (1) \| Respond to of 3951

Today's Focus List from Chase H&Q: Q2 Preview for Photonics and Broadband Semiconductors For Q2:CY00, we expect most of the stocks in our photonics and broadband semiconductor universe to exceed expectations. We believe the names with the most upside in the quarter will be our Focus list picks SDLI and PMCS, as well as recent public stocks NUFO and ONIS. We also expect JDSU, CIEN, and BRCM to post upside. Fundamentals for these companies remain extremely strong, especially for photonics suppliers, although valuations remain extremely high according to traditional metrics. Accordingly, we believe the best investments in the current environment will be the stocks with the strongest fundamentals as well as significant near-term upside potential. In Q2, our universe again outperformed the broad indices, appreciating 19% versus the 6% decline in the NASDAQ, though down sharply from last quarter's 77% return. Breadth was poor as two of the six stocks measured (CNXT and BRCM) finished down for the quarter. Meanwhile SDL and Ciena finished up better than 45%. We did not count recent IPOs NUFO and ONIS because they were not public for the full quarter, though these deals were among the best performing recent public offerings. Considering high expectations and commensurate valuations, we continue to monitor end-market demand and companies' ability to execute. Given the strong fundamentals for photonics and broadband semiconductor suppliers, we believe the best investments in the current environment will be the stocks with both the strongest fundamentals as well as significant near-term upside potential. In Photonics, suppliers continue to struggle to meet exploding end customer demand. Positive preannouncements by both Corning and SDL and the upward capex revision by Williams attest to this strength. Long-haul DWDM business remains solid, driven by new network deployments as well as upgrades to current networks to meet higher speed, capacity,a nd scalability requirements. More specifically, the 10Gbps upgrade cycle and ultra-long haul technology, which is a key element of second generation high-performance DWDM systems, should provide a boost to the long-haul market toward the end of the year and clearly in 2001. Submarine business hould also remain extremely strong. New applications of optical technology, most notably metro systems, are also beginning to gain traction. We believe 2001 will be a big year for metro, and this market opportunity could eventually eclipse even the long-haul segment. . . . Overall, For Q2:CY00, we expect most of the stocks in our photonics and broadband semiconductor universe to exceed expectations. We believe the names with the most upside in the quarter will be our Focus List picks SDLI and PMCS, as well as recent public stocks NUFO and ONIS. We also expect JDSU, CIEN, and BRCM to post upside. . . .