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To: Johnny Canuck who wrote (28642)	10/4/2000 12:59:52 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 67962

zdii.com October 4, 2000 12:24pm Oplink flies in debut By Tiffany Kary ZDII Oplink Communications (Nasdaq: OPLK) shot up 86 percent Wednesday after priciing its IPO at $18, the top of its upwardly revised $16 to $18 range. The deal's range was revised twice from an original $10 to $12 a share. Shares in the maker of market fiber optic components and integrated optical modules that increase the performance of optical networks were up 15 to 33. Sound off here!! Post your comment Latest News on OPLK Oplink flies in debut... Oplink Communications doubles after IPO... Oplink Communications, Inc. Announces Pricing of Initial Public Offering... OPLK: News Profile Chart Estimates "Optical networking has had tremendous support," said Kenan Pollack of IPO Central, who expected the deal to do well based on its placement in this not category, and the large size of the 13.7 million share deal. Like most companies going public, Oplink is racking up losses. For the fiscal year ended June 30, the company had a net loss of $24.9 million on revenue of $39.05 million, as compared to a loss of $3.47 million on revenue of $9.09 million in 1999. As of June 30, its accumulated deficit of $32.5 million. Aside from ongoing losses, another risk to investors is the concentration of revenue in the company's top three customers together accounted for 68.9% of our revenues in the year ended June 30, 2000. Lucent Technologies (NYSE: LU), Sycamore Networks (Nasdaq: SCMR) and JDS Uniphase (Nasdaq: JDSU), which accounted for 42.6 percent, 15.7 percent and 10.6 percent of revenues for the year ended June 30, 2000. Investors should also watch the company's relationship with Lucent, which has told Oplink that it "may decrease and eventually discontinue incorporating one of our optical components into some of its products over the next two years," Oplink said in its regulatory filings. Oplink cites Avanex, Ciena (Nasdaq: CIEN), Lucent, New Focus, Nortel and JDS Uniphase, which acquired E-Tek and plans to acquire SDL, as competition. The catch is the giants -- even Oplink customers -- are gobbling up the smaller players and posing a threat to the company. zdii.com The fact that Oplink relied on Lucent for 42.6 percent of its revenue for the year ending June 30 isn't that surprising. Many fiber optic companies rely on a handful of big customers to prop up lofty market capitalizations. So why the worry? Lucent has told Oplink that it "may decrease and eventually discontinue incorporating one of our optical components into some of its products over the next two years," Oplink said in its regulatory filings. Lucent isn't thinking about discontinuing any old component -- it's a component that accounted for more than 28 percent of Oplink's annual sales. For the year ending June 30, Oplink reported sales of $39 million and a loss of $25.6 million Specifically, Oplink said it sells to three Lucent divisions that make their own purchasing decisions. Sales to Lucent's Optical Network Group, Optical Electronics Group and Bell Labs accounted for 31.9 percent, 10.3 percent and 0.4 percent of 2000 sales, respectively JDS Uniphase is an example of how the industry is changing. JDS accounted for 10.6 percent of Oplink's 2000 sales, but it acquired E-Tek, which has a patent infringement suit against Oplink. Meanwhile, Lucent and Ciena are developing new technologies for wavelength division multiplexers that could hurt Oplink. TDAIN