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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (34278)	9/19/2001 3:10:53 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 68128

JDSU Q&A presentation: -Long term growth prospects for sector (components) 20 percent per year -Bandwidth expands are historical rate of 100 percent per year for last 15 years, some agreement about whether 50 or 100 percent -metrics for bottom: start with carriers, need spending from carriers to start again, still a lot of inventory in channel, some signs of inventory obsolences though -Inventory levels seen by JDSU are hard to come by, only seeing spotly data, supply chains unreliable in past, customer projections are not good, a lot of customers starting to write it off -JDSU formed by acquistion of 38 companies, will write off $900 mil to write off inventory and reduce redundancy -hope to save $700 mil annual as a result -manufacturing (sq footage) reduced from 6.3 to 4.2 mil sq feet -lot of constraints right now, trying to make single supply chain, expect most of it to be in China -Automation is the key focus for new entrants in sector, some amazing new automation being created -JDSU is not accelerating automation, has always been a focus -Bigger focus on the design side, focus on design for manufacture -customers: contract duration? - one year ago had one year contracts, no change, contracts were based on a percentage of business not a fixed amount of units, customers seeing problems are they struggle with cost, focus is on the system side (software etc ... ) , looking for reduced component cost, JDSU is responsible for the reducing the component cost, JDSU shares in next generation percentage of sales, JDSU is concentrating on quality customers as a result -40 gig projections, JDSU is only shipping sample now, 2003 looks like the introduction period, also still some technology issues -pricing: past price declines were 15 percent per year, seeing 20 to 25 percent this year, not seeing dramatic wholesales discounts, more pressure on passives as opposed to active, in acceptable range -New products: -Percentage in switching versus long haul, metro products also use long haul products and vice versa -Example - micro amp, $5,000, designed for metro, but being applied to long haul for lossless switch, seeing more demand in long haul -10 percent of business in metro, still small -most focus in switching in MEM's and wave guides, tunability will be important, network monitoring since electrical regeneration is elminated, so monitoring in all optical network an issue -Integration of telecom IC with components: at 40 gig IP with optics are more important, seems to work well with external chip companies -Outlook on acquisitions: still looking -SDLI integration going well, ahead of other integrations -JDSU dominant player in optical components, any plans to enter new markets, most telecom, some interest in ink to prevent counterfeit money, telecom opportunity still expected to be strong ,focus will be there