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Technology Stocks : Ciena (CIEN) -- Ignore unavailable to you. Want to Upgrade?

To: James Fulop who wrote (10329)	2/12/2001 8:35:39 PM
From: cfoe	Read Replies (2) \| Respond to of 12623

Following is article on DBAB "warning" for Ciena. After article I post a couple of questions on items I bolded in article. "Ciena Dn 9% After Deutsche Banc Says '01 Rev Drop Possible Updated: Monday, February 12, 2001 03:04 PM ET By Christine Nuzum Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--A cautious note from Deutsche Banc Alex.Brown helped send shares of Ciena Corp. (CIEN, news, msgs) and other fiber-optics companies down Monday. Deutsche Banc analyst Raj Srikanth wrote that Ciena may have difficulty meeting his revenue estimate of $1.5 billion for this year, citing "what we see as a challenging market." He hinted that sales of the company's long-haul transport product, in particular, may fall short of expectations. "Ciena's CoreStream long haul transport product will have to show 28% to 30% growth in fiscal 2001 -in what we see as a challenging market - in order for the company to meet our $1.5 billion revenue projection for fiscal 2001," he wrote. However, Srikanth noted that he is confident about the company's first quarter ended Dec. 31, predicting earnings will top his estimate of 15 cents a share, excluding dilution from the acquisition of Cyras. "We would not be surprised by a largely positive outlook for the second quarter of 2001, offset by dilution from the recent equity and debt offerings, as well as the Cyras acquisition," he added. Ciena shares recently traded at $73.94, down $5.94, or 7.4%, on volume of 15.3 million, compared with the daily average of 15.8 million. Ciena officials declined to comment on the company's stock decline Monday, citing a quiet period ahead of the release of its first quarter results. In his note, Srikanth cut his rating on Sycamore Networks Inc. (SCMR, news, msgs) to buy from strong buy, predicting lowered guidance in the company's second-quarter report Tuesday evening. Curiously, shares of Sycamore Networks were recently up 2.2%. However, other fiber-optics stocks were suffering. Indications of order pushouts by customers of storage company Emulex Corp. (EMLX, news, msgs), prompted concerns that fiber-optics companies may suffer from similar inventory buildups, traders said. Ciena and other fiber-optics stocks dragged down ONI Systems Inc. (ONIS, news, msgs), which fell 14%, said Dave Schnur, a portfolio manager at Three Squared Capital Partners Hedge Fund. Shares of New Focus Inc. (NUFO, news, msgs) also took a beating, tumbling 18%. (Corrected 05:30 PM) My questions: Ciena may have difficulty meeting his revenue estimate of $1.5 billion Is there an official revenue projection for Ciena and if so is it lower thak, the same or hight than DBAB's projection? Srikanth noted that he is confident about the company's first quarter ended Dec. 31, Doesn't Ciena's Q1 end 1/31 (based on a 10/31 fye)? If so, how can we trust an analyst that does not know the when the fye-q ends? Of course could it just be a typo by the reported?