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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Stockdoctor who wrote (67756)	3/4/2001 5:26:28 PM
From: RockyBalboa	Respond to of 122087

ONIS is richly valued but it is a very real company, and no scam at all... biz.yahoo.com ``We continue to see strong and growing demand,'' ONI Systems President and CEO Hugh Martin said in a conference call with analysts. ``We have not seen a slowdown in optical spending from our customers.'' ONI expects to increase its number of customers to 24 to 26 service providers by the end of the year, from 16 service providers at the end of 2000. ONI expects to break even on an operating basis, excluding stock compensation charges and goodwill amortization, in the fourth quarter of 2001. It forecast revenues of $210 million to $220 million for full-year 2001, and gross margins by the fourth quarter of 45 percent to 50 percent. ONI competes fiercely with much larger rivals, Nortel Networks Corp (NYSE:NT - news) and Ciena Corp. (NasdaqNM:CIEN - news) in the market for optical switching systems used in city-wide networks. Optical switches are considered faster than conventional electrical switches. Revenues for ONI were $30.2 million for the last quarter, up 84 percent from the third quarter, with gross margins rising to 36.6 percent from 32.1 percent. In the third quarter, the company posted an operating loss of $19.7 million, or 14 cents per diluted share, on sales of $16.4 million. ONI booked its first revenues from shipments of products to customers in the beginning of 2000. Revenue for the entire fiscal year 2000 was $59.7 million, with an operating loss of $62.3 million, or 54 cents per share. Net loss was $136.9 million, or $1.22 per diluted share. ONI ended the year with $852 million in cash, and $71 million in inventory. Chief Financial Officer Chris Davis said inventory of materials and components has increased, as the company guards against component shortages. ``We do see tightness of some active components,'' she said. ``We're continuing to build inventories to meet anticipated revenues.''