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

To: Jay Mowery who wrote (1384)	1/11/2001 10:51:17 AM
From: max power	Respond to of 1944

ITXC Taps Key Component of ADC's Singularit.e Product Suite to Help Bill for Connections to Every Phone in the World Singl.eView's Flexible Billing Architecture and Scalability Enable ITXC to Rapidly Expand its Global Voice on the Internet Network MINNEAPOLIS--(BUSINESS WIRE)--Jan. 11, 2001-- ADC (Nasdaq: ADCT; www.adc.com), a leading global supplier of fiber optics, network equipment, software and integration services for broadband, multiservice networks, today announced that ITXC Corp (Nasdaq: ITXC - news) has deployed ADC's (Nasdaq: ADCT; www.adc.com) Singl.eView billing platform, enabling it to bill carriers for calls between phones all over the world. Singl.eView allows ITXC to quickly enter new markets and offer new products that enable integrated communications providers to deliver local and international voice on the Internet services to their business customers. Princeton, N.J.-based ITXC, the leading provider of worldwide Internet voice services, sells its phone-to-phone services wholesale to such leading carriers as Cable & Wireless Optus, Philippine Long Distance Telephone Company, China Telecom, and Telstra. Singl.eView's flexible architecture allows ITXC to easily add new services, bill for thousands of different voice on the Internet rates within every geographic region, and manage 150,000 different rates globally. This flexibility enables ITXC to offer carriers rates (for both landline and mobile services) to every city in the world. ``Time to market is the most important factor to us as we enter new countries and develop new products,'' said Lee Cascio, ITXC's director of development. ``Singl.eView's most compelling features are its extremely configurable rating engine and its flexible architecture.'' ITXC is also using Singl.eView to bill for its ITXC webtalkNOW!(SM) Service. Through ITXC webtalkNOW!, a voice communications portal allows its customers to use their microphone-equipped computers to place a call over the Internet to a phone almost anywhere in the world -- typically at a lower cost than through standard telephone networks. Flexible architecture fuels growth To deliver international phone-to-phone and computer-to-phone call completion anywhere in the world, ITXC built and operates ITXC.net(TM), the largest global network for voice on the Internet. ITXC assures its customers carrier-grade quality over the Internet with its BestValue Routing(TM) technology, which routes calls around Internet congestion. ITXC's carrier and communications portal customers connect to ITXC.net via a gateway, or an originating personal computer, that converts their voice calls into IP data that travels across the Internet. When the call arrives at its destination, another gateway transfers the data back into a voice signal. Using the Internet's reach to link telephones all over the world has enabled ITXC to enter new markets and launch new services much more rapidly than if it had to sign lease agreements with different carriers and navigate complicated foreign regulations. However, because competition has spawned thousands of different rates within a geographic region, ITXC must have the capacity to bill for each rate. It must also be nimble enough to change its billing structure frequently to reflect the constantly changing rate landscape. Singl.eView's expression-driven architecture eliminates the custom coding involved in changing the operational support system (OSS) to handle billing for ever-changing rates. This reduces the time it takes for ITXC to introduce new services, enabling the company to gain a competitive advantage. ``Singl.eView provides the performance we need to scale our business. In our first weekly billing run, Singl.eView processed nearly 1.1 million events in 41 minutes,'' said Cascio. ``ITXC now has the potential to bill for 3 billion events a month on a single server.'' Singl.eView is an integral part of Singularit.e, ADC's suite of products, services and enterprise application integration (EAI) connectors that allows ICPs to build open OSSs to compete more effectively in the broadband era. Singularit.e automates key OSS processes by combining real-time convergent billing, advanced customer management and service assurance technology with integration services from leading consulting companies. Singl.eView is available on IBM, Sun and Hewlett Packard platforms and can accommodate ICPs of any size. ``Wholesale voice over IP is an exploding market,'' said Larry Barker, president of ADC's Software Systems Division. ``It is easier and faster to deploy than traditional telephony networks and it provides global reach. ITXC has the largest delivery network in the world. Singl.eView will help them grow rapidly and react quickly to market shifts so that they maintain a competitive advantage.''

To: Jay Mowery who wrote (1384)	1/17/2001 3:51:13 PM
From: max power	Read Replies (1) \| Respond to of 1944

Universe Description, January 2001: The Broadband Access Systems universe includes companies that sell equipment enabling the high-speed delivery of voice, video, and data services over broadband access networks. Our research is focused on next-generation wireline access systems and service delivery platforms. December highlights include the following: • Deceleration In Carrier Spending, Particularly Among CLECs, Creates Challenging Outlook. Reflecting slower growth in carrier capital spending, and significant reductions among many CLECs, we believe as many as seven of the ten companies in our coverage universe are likely to fall short of our fourth quarter 2000 estimates and/or lower guidance for 2001, leaving RADWARE, ADC Telecommunications (January quarter), and Advanced Fibre Communications as the only companies with their fourth quarter 2000 and 2001 outlook intact. In contrast, in the September quarter only three companies in our Broadband Access universe (CACS, CMTN, and TSTN) missed our third quarter estimates and/or reduced guidance. Not surprisingly, we believe the companies with large CLEC exposure to be most at risk of missing our fourth quarter estimates and/or significantly reducing guidance for 2001. We expect Copper Mountain and Turnstone Systems, both of which sell primarily to data CLECs, to be the most likely to reduce their 2001 revenue outlook significantly (perhaps more than 25% from current estimates of $300 million for CMTN and $186 million for TSTN). • Spending Slowdown Also Affecting Companies With Little CLEC Exposure. Ironically, the two companies in our universe that have recently preannounced fourth quarter 2000 or 2001 revenue and earnings misses both target primarily ILEC customers. On December 8, ADTRAN announced lower-than-expected fourth quarter results driven by lower sales to enterprise customers and lower gross margins, resulting from higher-than-expected sales of first-generation HDSL2 products. On December 22, Sunrise Telecom announced flat revenue growth for 2001—we had been expecting 27% revenue growth—citing “recent industry announcements about slowing down capital spending.” In addition, even ADC Telecommunications, which reported strong results in its fiscal fourth quarter ending October 31, guided revenues for its fiscal first quarter down to $850 million, representing a 17.6% sequential decline, well above ADC’s historical first quarter/fourth quarter seasonal decline of about 8% to 10%. • Investing Ideas. Given the earnings misses and challenging outlook, Broadband Access stocks (including 13 not in our coverage universe) have taken a beating, down 22% in the month of December and 76% year to date, while the NASDAQ is down 4% month to date and 38% year to date. We believe December’s dips in shares of ADCT (down 5%), RDWR (down 7%), and AFCI (down 30%) present compelling buying opportunities. Each of these companies has a diversified customer base with little or no CLEC (in the case of RADWARE) exposure, and we are confident in our revenue and earnings estimates for these companies. From a deep value perspective, we believe TSTN is interesting given that it has more than $5 per share in cash, should remain profitable in 2001 (even if actual revenues come in at $100 million versus our estimate of $186 million), and has a decent chance of penetrating ILEC accounts during 2001.