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

To: max power who wrote (1304)	11/28/2000 7:09:18 PM
From: Tom Hughes	Read Replies (2) \| Respond to of 1944

Some CC Notes. I missed the first 20 or so minutes and then got cut-off toward the end. Here are the notes that I have: ADC well positioned for 2001. Excellent sales momentum. While some competitors are stalled, ADC's sales force is "pumped." They see some competitors as vulnerable. See strong international growth for 2001. Local Loop will continue to be the sweet spot of service provider spending. Service providers "must continue to spend on the last mile." Thinks spending on the local loop will be a greater proportion of service provider spending in 2001 and will be largely immune from any capex reduction. Fiber optics business was up 166% in 4Q; up 136% year over year. Selling everything they can make and plan to expand capacity. 980 nan. pump and tuneable laser shipping to 10 customers and being evaluated by another 30. Copper connectivity increased by 94% year over year. In response to Q/A Customer base consists of 5-10% sales to CLECs. 4Q revenue from CLECs increased over 200%. CLECs spent "beyond our expectations" in the 4Q. While some CLECs are having trouble, others are growing and continue to spend. ADC DID NOT use investment gains to supplement operating gains. On track with sales to OEMs and sales of optics. Received two of the largest orders ever fom OEMs in the past couple of weeks. World Comm will aggressively roll out MMDS and ADC will play a "major part" in this. Regarding capex spending, "market is in a blue funk." "Looking for the worst combination of events." Broad Band is here to stay, customers and service providers see its value; market is not on its back; ADC is seeing robust demand so far in 1Q 2001. AT&T announcement caught ADC by surprise, but will not impact ADC. ADC sells mainly to old Media 1 which has not slowed orders. ADC's sales people have spoken with AT&T and have have been assured that AT&T expects to aggressively resume roll-out in 2001. This is where I was cut off. On balance, ADC management was very confident and upbeat. TH