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Technology Stocks : PairGain Technologies -- Ignore unavailable to you. Want to Upgrade?

To: Glenn D. Rudolph who wrote (23956)	6/2/1998 4:35:00 PM
From: Bobo	Read Replies (4) \| Respond to of 36349

Glenn, I got an update from a reliable source. It seems that the quarter will end up $.14 - $.17 unless June falls off a cliff or a tremendously strong. April was not great, but not horrible. May was better but not all financial info is in yet. The company is still digesting HDSL pricing as the price reductions of all RFQ's flow through. It looks like HDSL expectations are flat over the next few qtrs but somewhat downward this Q. PGFlex and Plus will end up at close to $12 mm for the qtr (maybe to the upside of this) and a $100mm run rate by Q1 of 99 is still reasonable. The crossover of PG growth and HDSL erosion will be in the second half of this year. The company still expects HDSL pricing to firm in the next several qtrs and that prices in 99 will be firmer than the last two years. The Sprint announcement is not a concern of the company. Even if the Sprint strategy were reasonable, the local Sprint arm is only half of one of the RBOC's to Pairgain IMO, this will be a very difficult strategy to execute and unlikely to get support from the RBOCS. It is improbable that Sprint will be successful with the strategy outside of large corporations. Let's think of the following big splash announcements that have had no impact...AT&T's fixed wireless announcement, US West's many xDSL announcements, and I am sure there are others. Regards, Bobo