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Technology Stocks : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?

To: invictus who wrote (12529)	9/8/2000 11:44:28 PM
From: onurbius	Read Replies (1) \| Respond to of 24042

Nortel Slides on Sales Demand Jitters By Susan Taylor OTTAWA (Reuters) - Jittery investors stripped C$19.6 billion from the value of Nortel Networks Corp. (NT.N) (NT.TO)on Friday, deepening a week-long decline sparked by worries that spending will slow among major telecom customers. Investors were reacting to speculation that revenue at major phone companies was slowing, which in turn will dampen equipment purchases. A story in the Wall Street Journal on Friday said such a slowdown would affect telecommunication system developers including Nortel and Cisco Systems Inc. (CSCO.O) ``Some people are concerned on the capital expenditure side that carriers, whose own stocks, whether they're CLECs (competitive local exchange carriers) or AT&T (T.N)...have been weak on concerns over subscriber growth, (earnings) growth, may be less than originally forecast,'' said Michael Cristinziano, analyst at Gerard Klauer Mattison & Co. ``We'll see what the numbers look like when these companies start reporting in September, and if the numbers meet or exceed, it'll be off to the races again.'' Nortel shares have shed C$15.60 or 13 percent on the Toronto Stock Exchange in the last four days, closing at C$106.40 on Friday from an opening value of C$122.00 on Tuesday. The stock lost C$6.35 on heavy trade of 8 million shares on Toronto on Friday. The Brampton, Ontario-based company was worth C$321 billion at the close of market on Friday, down from C$376.5 billion at the start of the week. On New York, the issue slipped $5 to end at $72 on a volume of nearly 14.7 million shares. Nortel was not alone in its market misery, but suffered a heavier beating than such rivals as Lucent Technologies Inc. (LU.N) and Cisco. Lucent closed at $40-1/8 on the New York exchange on Friday, a decline of about 7 percent from its opening trade of $43-1/16 on Tuesday. Cisco shares closed at $63-7/8 on Nasdaq, down from an opening trade of $67-9/16 on Tuesday. ``Nortel's gone up a lot this year -- it's going to have more profit taking,'' said George Hunt, analyst at Wachovia Securities. The telecom equipment analyst cautioned that warnings of slower spending should be taken with a grain of salt. ``Every year in September, someone -- one of the analysts in the big Wall Street firms -- talks about telecom equipment spending slowing,'' he said. ``Nine times out of 10, it does not materialize...every year since I've been in this business, carrier spending has been up over the previous year.'' The market may also be concerned about pitfalls related to vendor financing, the process by which network equipment suppliers help finance the purchase of their equipment by phone companies or service providers, Cristinziano said. Fiber-optic system supplier Ciena Corp. (CIEN.O) said on Tuesday it would record a fourth-quarter charge to account for up to C$28.2 million in vendor financing it may not be able to collect from a troubled European customer. That news may also have dragged down Ciena supplier JDS Uniphase Corp. (JDSU.O)(JDU.TO), the world's No. 1 fiber-optic component supplier, which fell more than 4 percent on Friday. Shares in JDS Uniphase lost C$8.25 to end at C$168.75 on the Toronto bourse on Friday and shed $5-9/16 to $114-5/16 on the Nasdaq. JDS Uniphase has offered to pay $215 million in cash to five executives at SDL Inc. (SDLI.O) upon completion of its takeover of the laser maker, according to documents filed with the Securities and Exchange Commission. The $42 billion takeover is being reviewed by U.S. antitrust authorities. ($1-$1.48 Canadian)