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Technology Stocks : ADC Telecommunications -- Ignore unavailable to you. Want to Upgrade?

To: lin huan chen who wrote (332)	2/19/1998 5:06:00 PM
From: lin huan chen	Respond to of 1944

Dow Jones Newswires -- February 19, 1998 Advanced Fibre Leads Telecom Suppliers' Rally; Shrs Up 11% By Rebecca Wolf NEW YORK (Dow Jones)--Shares of Advanced Fibre Communications (AFCI) rose 11% Thursday, leading a rally of other telecommunications equipment supplier sparked in part by ADC Telecommunications Inc.'s (ADCT) earnings. In late afternoon trading, Advanced Fibre's Nasdaq-listed shares had posted the highest gain of the sector, rising 3, or 10.8%, to 30 7/8. Volume was 2.1 million shares, compared with average daily turnover of 1.1 million. ADC Telecommunications' Nasdaq-listed shares came in a close second, rising 2 3/8, or 10.5%, to 24 15/16 on volume of 7 million. Average daily volume is 2.5 million. Late Wednesday, ADC Telecommunications, of Minneapolis, said it earned $25.4 million, or 19 cents a share, on sales of $286.4 million. A year ago, the company earned $24.9 million, or 18 cents a share, excluding charges, on sales of $256.8 million. Earnings were in line with analysts' estimates, according to a survey by First Call Corp. Earlier in the quarter, ADC Telecommunications twice alerted analysts to its earnings estimates. BancAmerica Robertson Stephens & Co. analyst Timothy Savageaux said ADC Telecommunications had voiced some "concerns" about carrier capital spending levels. But in a conference call following its earnings release, the company recanted those concerns, he said. "There's a sense that the carrier capital spending environment will be good," Savageaux said. Cowen & Co. analyst James Kedersha agreed that ADC Telecommunications' positive comments could be pushing the shares of some telecommunication equipment companies higher, but he said he thinks there are other factors behind Advanced Fibre's rise. He said Reltec Corp., a Cleveland company that competes with Advanced Fibre, of Petaluma, Calif., recently filed for an initial public offering. "That offering is causing some noise (for Advanced Fibre) that will continue over the next few weeks," he said, referring to the recent high 20's price of Advanced Fibre's stock - down almost half from the 52-week high of 43 1/4 set in October 1997. "But in the meantime, it's provided a good buying opportunity," which is why the shares have gained some strength, Kedersha continued. Analysts said an upgrade of ADC Telecommunications from SoundView Financial Group Inc. to short-term buy from hold also helped the sector.