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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (5727)	11/14/2001 5:37:05 PM
From: Sully-	Respond to of 99280

One entry found for erumpent. Main Entry: erum·pent Pronunciation: i-'r&m-p&nt Function: adjective Etymology: Latin erumpent-, erumpens, present participle of erumpere Date: 1650 : bursting forth <erumpent fungi> m-w.com

To: Zeev Hed who wrote (5727)	11/14/2001 5:39:48 PM
From: Sully-	Respond to of 99280

Ciena to almost triple its share of networking market NEW YORK, Nov 14 (Reuters) - Optical networking company Ciena Corp. (NasdaqNM:CIEN - news) expects to almost triple its share of the total networking equipment market this year as customers continue the shift to its next-generation gear, the president and chief executive said on Wednesday. ``We're taking large amounts of market share,'' Gary Smith said at the UBS Warburg telecom conference here. He said Ciena, based in Linthicum, Maryland, would increase its share of the total optical networking market, including the traditional legacy gear, to a projection of about 8 percent this year from 3 percent last year. The company has added 20 customers this year to push its overall total to 60. However, Smith did not say when he thought the slowdown in telecom industry spending would end. The total networking market has declined to an expected $20.8 billion this year from $28.5 billion last year, he said. The decline in legacy equipment sales will likely be worse than expected at 35 percent to 40 percent, while next-generation gear will see a 40 percent to 42 percent increase in demand, Smith said. Ciena's stock closed up 34 cents, or almost 2 percent, at $18.77 in Nasdaq trading. Since the beginning of the year, the stock has underperformed the American Stock Exchange Networking Index (^NWX - news) by about 45 percent. The index closed up 3.5 percent on Wednesday. Smith said what is happening at his company is occurring throughout the market as telephone carriers continue the shift from the older, legacy equipment. Companies like Nortel Networks Corp. (Toronto:NT.TO - news)(NYSE:NT - news) that recognize the need to adjust to that shift will survive, while others like Tellabs Inc. (NasdaqNM:TLAB - news) and Britain's Marconi Plc (quote from Yahoo! UK & Ireland: MONI.L) will be squeezed, he said. ``We're not dependent on any legacy revenues, so we can quite happily preach revolution,'' said Smith, who added Ciena was in strong shape with $1.6 billion in revenues and about $1.7 billion of cash on hand. Ciena said Monday it expected its fourth-quarter earnings to be in line with Wall Street expectations despite the spending slowdown in the communications sector. However, the company failed to provide guidance for 2002, compared with earlier guidance that 2002 revenues would grow in the ``early teens.'' It also said it would cut 380 jobs, or about 10 percent of its work force, and expects to take a charge of about $1.7 billion in the fourth quarter to write down certain assets. The industry's next-generation gear has raised its share of the total market to an expected 31 percent this year from 24 percent in 2000, he said. The legacy equipment sales will decline, but that decline will slow to 15 percent to 20 percent next year as strong demand in Asia provides some support, he said. However, the decline is inevitable. Smith added that next-generation equipment sales will grow more than 40 percent this year, compared with Ciena's expected 87-percent revenue growth. Next year, the growth will slow to 24 percent, and even that figure may be ambitious, he said. biz.yahoo.com

To: Zeev Hed who wrote (5727)	11/14/2001 7:00:06 PM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 99280

Zeev look at AMAT financial report - Operating Loss - over 158 million Interest income - over 54 million Now their sales are cut in half and will not grow but shrink next quarter which will result in bigger losses. Further your assumption of lower interest rates benefiting corporate profits in AMAT case their interest income will be cut almost by half better said by 1/3 or around $18 million which will only increase their losses. As such, ....... lower interest rates are lowering AMAT profits. ..............and that was my point in the previous post on this tread. IMHO only a fool will invest in this market. Trading ripples is another issue all together. Haim