Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : The Critical Investing Workshop -- Ignore unavailable to you. Want to Upgrade?

To: Dealer who wrote (27864)	8/4/2000 1:14:02 PM
From: bonnuss_in_austin	Read Replies (3) \| Respond to of 35685

Hi folks. How's everybody today? Phew. What an exhausting market week. Utterly exhausting. Dealer: quick question. In the (wonderful) black-and-white porch party shot, who is standing behind RR and Cowgirl? I missed that person there. AND, did Dutch! come? Dutch, is that you? Have a good day, all ... "b-i-a" ###

To: Dealer who wrote (27864)	8/4/2000 2:50:43 PM
From: Dealer	Read Replies (1) \| Respond to of 35685

JDSU--MotleyFool.com - Fool Plate Special A JDS Uniphase and Corning Showdown? By Richard McCaffery As optical networking component company JDS Uniphase (Nasdaq: JDSU - news) gets bigger and bigger, widening its lead in the optical industry, investors should be asking themselves questions about its competitive advantage. For example, what gives JDSU an edge over fine-tuned rival Corning (NYSE: GLW - news)? Size JDS Uniphase is the world's leading optical component supply company. Its heft gives the company buying power on the supply side and leverage on the customer side. Investment bank UBS Warburg estimated JDSU would have $2.3 billion in sales this fiscal year, giving it about 29% of the global optical equipment market for large companies. With the addition of SDL (Nasdaq: SDLI - news) -- if it goes through -- JDSU would have about 34% market share. Corning, which UBS expects will have about $850 million in optical component sales this year, has about an 11% market share. It also has been growing rapidly through acquisitions but doesn't have the same bulk. Product breadth and depth JDSU breaks its business into two primary units: components and modules. The components group makes products such as source lasers, modulator products, and filters used in the telecommunications business. The modules business makes transmitters, amplifiers, transceivers, and other products used in the telecommunications and cable television business. In fiscal 2000, JDSU's components business reported $839.2 million, up more than 400% from $165.6 million last year. Its modules division reported sales of $429.2 million, up almost 600% from $62 million a year ago. With the SDL acquisition, JDSU would solidify its leading position as the gorilla in the pump laser chip business. Clearly, JDSU has excelled in the business of acquisitions, a rapid means of obtaining technology in a business that changes overnight. Its ability to spot what it needs and integrate it quickly should be regarded as a competitive advantage, one rivals will have a hard time matching given JDSU's size. In addition to being the world's leading provider of fiber optic cable, Corning is a leading supplier of optical amplifiers and related parts. While the company doesn't have the breadth of JDSU, it has moved strongly into the components side of the optical business with acquisitions of Oak Industries, Siemens AG's optical fiber and cable business, and dense wave division multiplexing (DWDM) component maker NetOptix. These moves helped boost second-quarter sales 57% to $1.78 billion. In addition, Corning is a skilled manufacturer, with more than a decade of experience making fiber optic cable. This bodes well for its facility expansion plans, and its expertise making fiber optic cable gives it a natural entry point among telecom carriers. Plenty of room in the sandbox The optical components industry generated about $3.2 billion in sales last year. It's expected to growth 30% annually, according to a Robertson Stephens report, and there aren't any signs it's slowing, not with the pressing need for bandwidth. Most industry observers believe we're still in the early stages of network development, with a great deal of work remaining in critical areas such as the development of all-optical switches. Components suppliers like JDSU and Corning are well positioned to remain on the cutting edge. As both companies race to expand capacity this year and next, investors should watch to see if both can continue to execute efficiently. That means meeting revenue growth targets, meeting capacity expectations (JDSU expects to quadruple capacity over the next 18 months), and keeping customers like Nortel (NYSE: NT - news) and Alcatel (NYSE: ALA - news) happy. If they continue to execute there's room for both to thrive. For more things Foolish, go to the The Motley Fool's complete site! We aim to inform, educate and help you make good money, Fool. Also, check out the FoolMart, the place to shop for Foolish investing tools. Become a Fool for Motley Fool stock features, updates, contests, and product discounts!