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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: Ibexx who wrote (1291)	1/27/1998 9:07:00 PM
From: Ibexx	Read Replies (1) \| Respond to of 21876

Thread, CIENA hit after rival Lucent unveils new system NEW YORK, Jan 27 (Reuters) - Shares CIENA Corp CIEN.O dropped 10 percent on Tuesday after rival Lucent Technologies Inc LU.N unveiled a global optic networking system on Monday that could present a strong challenge for CIENA, analysts said. CIENA, the second-most active Nasdaq issue, lost 5-11/16 to 48-13/16 at midday on Tuesday. Lucent on Monday unveiled a global optical networking system that it says and provides up to 400 gigabit-per-second capacity over a single strand of fiber. Lucent said AT&T Corp T.N will be the first company to test and deploy the new 80-channel system, which is called WaveStar OLS 400G. Meanwhile, AT&T has also been testing CIENA's 16-channel dense wavelength division multiplexing (DWDM) system. DWDM is a method of increasing the capacity of a fiber optic cable by transmitting multiple signals over a fiber optic cable at the same time. Analysts said investors may have overreacted to Lucent's announcement and its potential challenge to CIENA. AT&T spokesman Dave Johnson said "Yesterday's announcement with Lucent will have no impact on our relationship or agreement with CIENA." Johnson said it has needs for both types of technology and that the Lucent announcement does not nullify its existing relationship with CIENA. "Not every part of our system in every part of the company needs an 80-channel system. It would be like putting a 10-lane highway in the middle of some rural area," Johnson said. "While investors are concerned that CIENA's technology is being leapfrogged with this system, we would prefer to wait for early test results and for CIENA's response before jumping to any conclusions," Mary Henry, an analyst with Goldman Sachs, said in a research report. Henry also said AT&T chief technology officer Frank Ianna has indicated that 16-channel systems from CIENA and Lucent would be deployed in volume in 1998 and that CIENA, Lucent and other companies would have the opportunity to supply higher bandwidth systems to AT&T as their products become available. "It's not a positive for CIENA, but nothing is confirmed that CIENA is kicked out now. The (Lucent) product is still in test phases and no one knows now how long it will take," said Michael Neiberg, an analyst with Furman Selz. Analysts also said there is room for both CIENA and Lucent to be leaders in the quickly expanding DWDM market. Lucent shares gained 1-1/16 to 84 in afternoon trade. REUTERS Rtr 14:35 01-27-98 ______ Ibexx PS: I don't dare to post this on the CIEN thread, they kill messengers over there.:-)