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

To: onurbius who wrote (12583)	9/13/2000 9:44:29 AM
From: SJS	Read Replies (1) \| Respond to of 24042

CSFB comments on JDSU meeting: __________ JDS Uniphase (JDSU-$103 3/16-Cap $103.3B-Buy) Hosts Upbeat Analyst Meeting FY01E: $0.69, FY02E: $1.00 · JDSU hosted upbeat analyst mtg at its Ottawa facility detailing its automation efforts and process improvements which will contribute to the goal of 4x increase in output over 18 mo; JDSU reiterated its plan to reach output targets by expanding physical capacity (expected to reach 5.2M sq ft in total capacity in FQ4:01 from 3.6M in FQ4:00) automation, manufacturing process improvements and outsourcing. · Important area where high level of automation has been introduced is the centerpiece assembly process of coupler manufacturing; JDSU has automated the 2nd and 3rd stages of the mfg process, which has increased output/person by up to a factor of 4; Plans to automate the initial stage of mfg are underway; Production output of centerpieces generated from automated equipment (vs manual) already accounts for a material level of total. · JDSU also highlighted its AutoAligner (3rd gen) which automatically screens centerpieces and aligns fiber to the centerpiece; This system has led to 60% improvement in productivity; Company anticipates integrating AutoAligner w/ swept wavelength testing system, which will provide further gains in output. · In optical amplifiers, JDSU utilizes automated fusion splicing in-house (has doubled splice input by factor of 2 over last 12 mo) as well as outsources sub-assemblies to Celestica; We believe JDSU is in talks w/ a number of addt’l contract manufacturers and could make an announcement in the near-term regarding outsourcing of attenuators. · Separately, JDSU announced mgmt reorganization pursuant to company integration plan which increases focus on key transmission, amplification, DWDM, and switching applications; As anticipated, Sanjay Subhedar (former ETEK CFO) is resigning from the company to pursue personal interests. · Demand fundamentals in optical components/modules remain robust and we believe that JDSU is tracking favorably to our FQ1:01 $750M top-line and $0.16 EPS projections; Continue to view SDLI as inexpensive way to buy JDSU due to 21% arb spread; Reiterate BUY.