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Technology Stocks : SDL, Inc. [Nasdaq: SDLI] -- Ignore unavailable to you. Want to Upgrade?

To: Glenn McDougall who wrote (2863)	9/20/2000 11:46:38 PM
From: BDR	Read Replies (1) \| Respond to of 3951

A couple of articles on the state of the sector. VCs pumping money in: SEPTEMBER 20, 2000 Money Flows Through the Pipes Venture capitalists who like to sing the praises of optical networking's potential don't see the pace of investment slowing down any time soon. In an already record-high year for venture financing overall, investments in optical concerns were part of the fastest-growing business segment as tracked by PriceWaterhouseCoopers' MoneyTree survey. The Telecomm sector (which includes optical networking companies) attracted $4.4 billion in venture funding during the second quarter of 2000, up from $2.9 billion in the first quarter, according to Kirk Walden, national director of the MoneyTree Survey. While the recent moves of components giant JDS Uniphase (Nasdaq: JDSU) have brought new interest to the building-blocks side of the business, VCs say they are still also looking at system ventures, especially those that have a mature product and a large market upside. They also predict that the funding game for optical networking is just getting started, and that the stakes will get higher as more players vie for a piece of the pot. "There is a sufficient economic carrot in the truly big opportunities available," said Peter Wagner, general partner with Accel Partners, explaining the buzz building around optical-networking investments. Still, Mr. Wagner warns that not every optical startup can live up to its investors' hopes. Complete article at: lightreading.com The telecoms are cutting back? upside.com Tellium switches on with Qwest September 20, 2000 09:32 AM PT by Rex Crum Harry Carr thinks the optical switch industry should take his company, Tellium, seriously. If Tellium keeps doing deals like the one it did today, Carr, Tellium's chief executive officer, should have no problem getting his wish to come true. Oceanport, N.J.-based Tellium announced a three-year deal to sell its optical switches to phone and broadband company Qwest Communications (Q). Carr would not disclose the agreement's exact dollar amount, but did say that it was "in the range" of a similar $350 million contract Tellium completed with British telecommunications firm Cable & Wireless (CWP). "Some people might have thought Cable & Wireless was a fluke," Carr said. "I think the carriers are starting to get the message about us now." Carr said that the agreement calls for Qwest to buy Tellium's Aurora Optical Switches -- hardware that directs data and voice traffic in optical networks at up to 1.3 terabits of data every second -- and take a minority ownership stake in Tellium. Carr would not say how big of a Tellium share Qwest would own.