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Technology Stocks : ADC Telecommunications -- Ignore unavailable to you. Want to Upgrade?

To: Rainmaker who wrote (971)	8/29/2000 1:55:35 PM
From: max power	Read Replies (1) \| Respond to of 1944

By Johnathan Burns Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Long dogged by rumors that his company will make a bid for Harmonic Inc. (HLIT), ADC Telecommunications Inc. (ADCT) Chief Executive Bill Cadogan said Tuesday the company has never considered such a deal. "And I don't think we ever will," he told Dow Jones Newswires. Market whispering has linked the two companies in a possible deal for more than a month, and ADC has done everything short of saying outright - until Tuesday - that it won't buy Harmonic. ADC has said that any deals it considers won't be large, dilutive ones. In the last 18 months, ADC has made about a dozen acquisitions. And Cadogan said the company has always looked for deals that will complement its existing product lines in optics, software and IP networking. "We will continue to do that," he said. Meanwhile, Cadogan said ADC - which soundly beat expectations in the its fiscal third quarter reported earlier this month - continues to see robust spending by small start-up telecommunications companies. Cadogan said those companies, also known as competitive local exchange carriers, or CLECs, are showing robust spending into the fourth quarter and next year. Cadogan's sense of the market, reiterated by a number of equipment makers, is that concerns that CLECs would cut spending because of their dropping stock valuations are unfounded. "When you talk about CLECs, they only represent about 10% to 15% of our total sales," he said. "As we look to the fourth quarter and next year, they continue to be among the fastest-growing (companies)." ADC's products help telecommunications traffic move at faster speeds along communications networks. The company sells wireless, copper and fiber-optic gear. Cadogan said the company expects revenue in the ongoing fourth quarter to grow 40% to 50% over a year ago. He said full-year revenue will exceed $3 billion. He also said he is comfortable with the First Call/Thomson Financial consensus earnings estimate of 19 cents a share for the fourth quarter. The company is now in the process of boosting capacity of tunable lasers. "I think people are concerned about how quickly we can ramp up to supply (tunable lasers)," Cadogan said. The company is expanding capacity at a plant in Sweden and will see increased results by early spring, he said. Also, the company announced Tuesday it is forming a photonics integration center at its Minneapolis headquarters. Cadogan said systems makers want component manufacturers to package more components into sophisticated modules. -By Johnathan Burns, Dow Jones Newswires; 201-938-2020; johnathan.burns@dowjones.com (END) DOW JONES NEWS 08-29-00 01:07 PM