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

To: PLeaps who wrote (2295)	7/20/2000 10:06:59 PM
From: pat mudge	Read Replies (1) \| Respond to of 3951

Thanks mi amigo. My pleasure! And from WSJ: interactive.wsj.com@6.cgi?mfmuse/text/autowire/data/BT-CO-20000720-007708.djml/&NVP=&template=atlas-srch-searchrecent-nf.tmpl&form=atlas-srch-searchrecent-nf.html&from-and=AND&to-and=AND&sort=Article-Doc-Date+desc&qand=&bool_query=sdli&dbname=%26name1%3Ddbname%26name2%3Ddbname%26name3%3Ddbname%26period%3D%3A720&location=article&HI= SDL Up -2: Shrs Of Acquirer JDS Uniphase Up 20% By PAULA L. STEPANKOWSKY LONGVIEW, Wash. -- Stock in SDL Inc. (SDLI), a San Jose, Calif., fiber optic network component maker, was trading up 18% Thursday, a jump the company's chief financial officer attributed to the announcement that JDS Uniphase Corp. (JDSU) would join the Standard & Poors 500 Index. Last week, JDS Uniphase announced it agreed to acquire SDL, which had been its biggest rival in the booming fiber-optic component market, in a stock deal then valued at $41 billion. The S&P 500 announcement came after the market closed Wednesday. "We're kind of like a hybrid JDS Uniphase stock right now, or it appears to be trading that way," SDL Chief Financial Officer Mike Foster said. JDS Uniphase stock was trading up 20% on Thursday, also likely on the news of its addition to the S&P 500, Foster said. Stocks typically increase in price when it is announced they are being added to the S&P 500 because they get more exposure and because of index trading associated with the S&P 500. Foster said SDL is scheduled to announce its second-quarter earnings after the market closes Thursday. He said the market may perceive the release as "ho-hum" after the merger announcement. But he said SDL stock will trade independently until the deal closes. SDL stock was trading at 427 5/16 recently, up 67 11/16, or 18.8%, from Wednesday's close. JDS shares were trading at 127 9/16, up 20 13/16, or 19.5%. >>>> Pat

To: PLeaps who wrote (2295)	7/23/2000 5:29:08 PM
From: pat mudge	Read Replies (1) \| Respond to of 3951

Glancing at the competitive landscape, I found a couple JDSU contracts that indicate LU does compete in the module space: LU and Uniphase partnered to supply laser modules to Tyco: jdsunph.com This makes it clear Uniphase provides the chips and LU puts them into modules. Contract goes to Dec. 2000, later extended to Dec 2001 (Jan 20 press release). Same sort of arrangement with Nortel, covering three years: jdsunph.com The Nortel Networks/Uniphase collaboration has supplied the optical amplifier market with outstanding pump laser reliability for five years. Nortel Networks’ pump laser modules, which incorporate Uniphase's chip, have a field failure rate equivalent to only one device each 10 million accumulated device hours. The mean-time-to-failure of Uniphase's laser chip exceeds two million hours of continuous operation at rated operating conditions. New products announced in March: jdsunph.com >>>> From Cowen's recently published optical networking report, "Speed of Light," provides a little insight into the products of SDL and JDS: <<<< 8 Speed Of Light 7/2000 JDSU Announces SDLI Merger . . . JDSU announced its intention to acquire SDLI for approximately $34B in a tax-free stock transaction, based on exchange of 3.8 shares of JDSU for each share of SDLI common stock. The deal is expected to close by the end of December, contingent upon shareholder and regulatory approval. The transaction is expected to be accretive from the time it closes. Don Scifres, President and CEO of SDLI will continue to head SDLI as a wholly owned subsidiary and will become co-chairman of the combined JDSU/SDLI. Key Technology Synergies: The transaction will generate a number of technology benefits, and most notably will give JDSU a strong presence in the 980 nm pump market. SDLI makes 980 nm chips and packages them into modules, and while JDSU was manufacturing chips, it did not have strong presence in packaging capabilities. In the amplification market, SDLI also has a strong leadership in the emerging high-growth raman amplifiers, where JDSU had made announcements but did not have as visible a presence. Lastly, SDLI’s arrayed wave guide products (from Piri acquisition) complement JDSU’s filter lineup. The companies also believe that the merger will enable them to leverage their combined manufacturing resources, increasing efficiencies and reducing capacity bottlenecks. Two critical issues that investors and arbs will deal with over the coming months are DoJ approval and customer reaction, somewhat similar to the JDSU/ETEK deal. We expect the DoJ to closely study the JDSU/SDLI transaction, much like their scrutiny of ETEK. We expect JDSU’s strategy will be to differentiate the 980 market by both chips and packaging capacity, the latter being a fairly new area for JDSU. From a customer perspective, the deal may raise some discussion of the industry’s level of comfort with consolidation among the merchant component players. Speculation of LU spinning out its microelectronics division may heighten as the industry seeks a more competitive landscape and another large merchant player. The JDSU/SDLI transaction is expected to be accretive upon closure, based solely on better-than-expected results (and not accounting for additional potential revenue from synergies). We believe that preliminary CQ2 sales and income are higher than estimates for JDSU, ETEK and SDLI, with combined annualized sales of $2.7B. We continue to be enthusiastic about the JDSU story. JDSU targets a high-growth, capacity-constrained optical systems end-market and continues to gain share via its aggressive acquisition program, and as merchant suppliers gain share relative to captive suppliers. Furthermore, the company’s strategy seems to keep it one step ahead of market trends. Combining that with very smooth execution and an industry that in some ways is still in its infancy, JDSU becomes a short-term and long-term winner. . . . On Heels of ETEK Merger Winning DOJ And Shareholder Approval The DOJ has approved the merger of JDSU and ETEK, after reaching an agreement and gaining antitrust clearance. ETEK shareholders also approved the merger, setting the course for completion of the transaction. The value of the all-stock deal closed at $18.7B, up from an initial price of $15B (2.2 ETEK shares for 1 JDSU share). One reason for the longer-than-usual deliberation on the approval was related to DWDM mux/demux technology and JDSU and ETEK’s share of the thin film filter market. Concerns over the possibility of an anti-competitive market led the DOJ to request more background information which delayed approval. JDSU needed to provide material about the competitive landscape for the mux/demux market, to support the case that fiber bragg gratings and waveguides are alternative technologies to thin film filters. As part of the DOJ’s clearance, the combined company will have to cancel its right of first refusal arrangements with third party vendors. Nevertheless, we expect the synergies in the JDSU/ETEK merger to increase efficiency and output. The integration of ETEK, excluding amortization of goodwill, is expected to be accretive by roughly $0.05 per share in the next year. >>>>> Does anyone know how successful LU's been in meeting NT and Tyco's agreements? Does LU compete more with SDLI than JDSU? I need help here. And with any luck the DOJ will be just as confused. :) Pat