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Technology Stocks : ADC Telecommunications -- Ignore unavailable to you. Want to Upgrade?

To: IBMikey who wrote (1191)	10/22/2000 2:15:42 PM
From: mact	Respond to of 1944

to thread...looking to enter this stock on longterm basis...with a quick glance into this company, reminds me of GLW from a few yrs ago...will they focus more on fiber optics in the future?...while i appreciate their diversity, focusing on the fiber mkt. appears to have the most potential to their shareholders...can somebody explain the BAS situation to a newbie?...and what is ADCT's stake in Altitun...support near 25 looks good...appears to be a good entry point imo...did ADCT recently split?...thought i saw it trading in 80's just a month or so ago?...tia. mact

To: IBMikey who wrote (1191)	10/22/2000 2:53:47 PM
From: MikeM54321	Read Replies (1) \| Respond to of 1944

MikeM wrote upstream: "I am slightly concerned about Carrier Access(sym:CACS) earnings warning and what that may imply for ADCT. I can't find the figure now, but the CLEC exposure ADCT faces is considerably less than what CACS faces. But there is a CLEC exposure if memory serves me correct." Message 14542617 IBMikey- I believe there is something more than I imply above. Maybe Carrier Access has some kind of agreement to purchase ADCT equipment? I'm not quite sure. Anyway if you read the response to the above message, you'll see the CLEC exposure mentioned. HTH. -MikeM(From Florida)

To: IBMikey who wrote (1191)	10/23/2000 12:23:20 PM
From: Tom Hughes	Read Replies (2) \| Respond to of 1944

ADCT is a Distributor of Carrier Access Products. From Carrier Access' June 10Q. sec.gov During the three and six month periods ended June 30, 2000, most of the sales of our products were made through distributors, and our success depends on the continued sales and customer support efforts of our network of distributors. In the first six months of 2000, ADC Telecommunications and Walker & Associates accounted for 18.9% and 16.3%, respectively, of net revenue. We expect that the sale of our products will continue to be made through a small number of distributors. Accordingly, the loss of, or a reduction in sales to, any of our key distributors could have a material adverse effect on our business. In addition to being dependent on a small number of distributors for a majority of our net revenue, we believe that our products are distributed to a limited number of competitive carrier customers who are primarily CLECs. In the six months ended June 30, 2000, we believe that one of these competitive carrier end user customers accounted for 18% of our net revenue. A decrease in sales to this competitive carrier customer could have a material adverse effect on our business. ______ While ADCT accounts for a substantial part of Carrier Access' business, it does not appear that Carrier Access accounts for a significant part of ADCT's business. According to Hambrecht: We also feel the issues surrounding Carrier Access are of little cause for concern. Broadband digital equipment vendor, Carrier Access, reported this week that third quarter earnings would fall short of analysts’expectations, prompting concerns for ADC, which has an OEM relationship with Carrier Access. We believe however that these concerns are overdone, given that total sales to Carrier Access contributed less than of 1% of ADC’s revenues last quarter. Additionally, we should note that less than 10% of ADC’s revenues last quarter came from CLEC customers, which should alleviate any concerns with regards to CLEC capital spending and business sustainability. With shares trading at 40 times our fiscal 2001 EPS estimate, we continue to believe ADC shares represent attractively valued exposure to the broadband access and fiber optic component and connectivity markets. Message 14528049 TH