Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Wyätt Gwyön who wrote (3097)	10/20/2000 2:11:07 PM
From: pat mudge	Respond to of 3951

BT Alex Brown report on SDLI: <<< HIGHLIGHTS: SDL Inc. reported record revenues, earnings and margins for the third quarter of 2000 yesterday after the market's close. -- EPS exceeded expectations: Management reported pro forma earnings of $0.45 per share, above our estimate and First Call consensus of $0.38, on very strong revenues and exceptionally strong margins. -- Strong revenue growth: SDL revenue increased to a record $146.5 million, up 208% from the previous year and above our $139.2 million estimate. Revenue growth was driven by strong demand across-the-board for optical components and modules which contributed 90% of sales. -- Record margins: Gross margin increased a remarkable 400 bps sequentially to 56.6%, above our 52.9% estimate. The improvement in gross margin was due to an improved product mix, improved yields in pump laser products and increased manufacturing efficiencies. A decline in R&D as a percentage of sales contributed to a record operating margin of 39.4%, well above our projection of 34.7%. -- Strong outlook: The company has an impressive array of new orders for products across all its major divisions. We are raising our estimates based on this tremendous demand for SDL's undersea and terrestrial components and modules combined with the strong outlook for the optical components market. -- Customer diversification: SDL continued to make progress at increasing customer diversification and increased the number of customers with over $15 million in sales to a total of five from only one customer in the previous quarter and none the year before. -- Raising revenue and earnings estimates: We are raising our estimates for the fourth quarter of 2000 as well as for 2001 given the strong quarter and market outlook. We are raising our EPS estimate for 4Q 2000 to $0.50 from $0.45 and for FY00 to $1.50 from $1.38. We are raising our 2001 EPS estimate to $2.57 from $2.00. Our revenue estimate for 2000 has increased to $501 million from $489 million and for 2001 to $1.01 billion from $850 million. -- Re-iterate STRONG BUY Rating. In our view, SDL is ideally positioned to capitalize on the growth in the terrestrial and under-sea DWDM market, continues to ramp up capacity and leverage its technology leadership with exciting new products. We think the stock continues to represent one of the best ways to participate in the optics sector. . . . >>>>