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

To: Mehitabel who wrote (13218)	10/24/2000 11:24:46 AM
From: pat mudge	Read Replies (4) \| Respond to of 24042

In the optical space, LU's paying the price for betting on 2.5gig versus 10 gig. Right now they're eating the older products and watching in horror as the 10gig market goes to NT and Ciena. (Poetic justice, there.) Overall, their problems are compounded by the fact carriers are migrating away from circuit switching faster than they expected. So not only are they not buying LU's switching products, they're buying someone else's advanced systems when they upgrade. If LU had made the right bet on 10gig, their problems wouldn't be nearly as severe. If you're General Motors and you get a telegram from the Gods of the Motorcar Universe saying every car you have in stock is now obsolete and that every driver on the planet will be required to buy new models, it's not so bad if you design the replacement they want. The problem with LU was that they designed the product they thought their customers wanted and NT designed the product they actually needed. JDSU and SDLI will benefit no matter which systems are built. However, if JDSU hadn't bought SDLI, they would not have the products they need for the next phase --- the 40gig. That's where SDL shines and why they got the price they did. Pat