To: Sector Investor who wrote (22798 ) 8/3/2000 5:02:45 PM From: BxK Respond to <<The fiber-optic component sector is where the money is being made these days, and some fund managers have been in the space from the beginning.>>capacity is to this industry," says Bartlett. "That was the real driving force. As an industry, this is not driven by incremental changes in orders. Order growth is not an issue at all. It's a function of companies' ability to gain capacity to meet the demands of the market. And these companies are attacking this problem from multiple directions." AWG, or array wave guides , which help in the separation for higher channel count wavelength systems. With the move into DWDM, or dense wavelength division multiplexing systems, as a major trend, this is becoming a much more imperative technology." SDL recently acquired closely held PIRI, which has a strong position in AWG. Raman amplification . "This is a technology that is important as optical networking equipments move toward longer transmission distances, an important cost reduction architecture," he says. "While JDS was working on developing the technology internally, SDL has leadership in this product. Also, SDL has very important patent positions that at some point could become a competitive advantage." laser chip technologies products . "So it really would help JDS as well as SDL in all the important areas of consolidation," Bartlett says. "The three key technologies, AWG, Raman amplification, and key laser chip products, and mostly they result in higher levels of integration. It's very much a win-win situation for both companies" he adds.>> individualinvestor.com
