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To: Mark Fowler who wrote (7674)	6/19/2001 1:45:15 PM
From: Bill Harmond	Read Replies (1) \| Respond to of 57684

Overcapacity is always a problem. Look at Japan. In telecommunications, I don't think it's an overcapacity problem as much as a technology dislocation problem. The circuit switch (from Nortel, Lucent) is dead. Productivity gains have been real. Productivity is down lately because of the slowdown. If you had 5 people making 100 widgets before, and the same 5 people making 90 widgets now, then productivity is down. No one can fine-tune labor and capex that well.

To: Mark Fowler who wrote (7674)	6/19/2001 2:03:32 PM
From: Bill Harmond	Read Replies (1) \| Respond to of 57684

From Briefing: Juniper Networks (JNPR) 29.02 +0.72: In morning note, Needham & Co upgrades to BUY from HOLD rating with price target of $35; firm is aware of the challenges facing Juniper in the current environment, but feels that investors should not lose sight of the distinction between excess capacity in the transport layer and the different dynamics of the services layer of the wide-area core; also, the eventual implementation of widespread broadband access holds the potential to rapidly soak up capacity in both the core and the edge of the WAN, which firm believes should benefit Juniper.