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.

Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Judith Williams who wrote (38966)	2/6/2001 12:09:19 PM
From: Judith Williams	Read Replies (1) \| Respond to of 54805

An example of JAGP' NEE: I just listened to the JDSU/SDLI call on the DOJ approved merger and it bears on our discussion of NE in two ways: I. In my Project Network I suggested that the mysterious Stage Four of JDSU's business strategy might be the IOC (integrated optical chip). SDLI's Don Scifres outlined what the future looks like: 1. make best-in-class products at low cost for today 2. develop advanced module level solutions for tomorrow 3. hybridization will give way to an integrated system on a chip Jozef Straus emphasized that the time frame for developing IOCs has condensed. And in the Q&A Don Schifres pointed out that SDLI has already introduced a variable attenuator combined with AWG (array wave guide) MUX/DeMux (multiplexers/demultiplexers) on a silicon wafer. The next step will be to combine on this chip optical (or mostly optical) switches. II. The deal to sell Nortel JDSU's Zurich plant (and some ancillary facilities in Poughkeepsie) itself exerts considerable NEE. The Zurich plant produces 980nm pump lasers and Nortel was its biggest customer. (JDSU/SDLI are not selling their Plimouth, England facility which also manufactures 980nm pump lasers.) In return, not only is Nortel paying (in $2.5b of shares) a fair price for the Zurich facility, but it has entered into expanded agreements on the percentage of its sales that it will put through JDSU/SDLI for various (not disclosed) product lines. The penalty for not meeting these benchmarks is an additional $500m in Nortel stock. --Judith