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Technology Stocks : Ciena (CIEN) -- Ignore unavailable to you. Want to Upgrade?

To: joe who wrote (2327)	7/19/1998 9:28:00 PM
From: Jerryco	Respond to of 12623

Joe, not having checked the links till your post now I think Dave meant post #1339 which I will duplicate here: To: Rob L. (1330 ) From: Dave Dickerson Tuesday, Oct 7 1997 9:30PM ET Reply # of 2761 To all: SUMMARY OF KEY POINTS OF 10/6/97 TELLAB'S ANALYST TELECONFERENCE WITH COMPANY'S MGT.TEAM 3rd ¬ for Tellabs was a good one. Sales were $309 million +32% over 3rd ¬ 1996. Titan sales up +41%, Martis sales +28% (up really +53% in Finnish money as there was $12 million lost in currency swap) Martis DXX coming on strong with 110 customers so far. +53% actual growth, so 4 ¬ sales will be $78-84 million, which is all that Tellabs can handle at this time. Ireland plant getting done in June,1988 will help supply situation. 1/3 of business is international. Gross profit margin was 62.6% (+3.1%). R and D at $40 million or 12.9% of sales, was right on target. S.A.P.-global information system is great. Net profit after tax=$64.3 million +39% over last year or 21% of gross revenue. Net EPS=$.34/share vs $.25/share, up 36%. Cash and investments=$500 million ( up$76 million over June ¬). Capital improvements=$ 25 million for ¬ (3 major expansions). Book value=$4.84/share vs .$4.33/share last ¬ +11.8% in just 3 months." Rest of 1997-looks good", mgt. team feels comfortable with analyst's projections of $.40/share net earnings for 4th ¬. In last 4-6 weeks,Tellabs stock was more volatile than normal,fueled partly by what mgt. thought was a carefully worded pronouncement (quit expecting Tellabs to substancially beat analyst's calls all the time ) was misinterrupted. Analyst's "unfounded worries" have caused stock volatility. Digital cross systems (Titan) do very well vs. optical fiber networks, and will be strong for the foreseeable future. 1988 will be a strong year for Titan systems. Titan systems are in the 4th or 5th innings of the ball game of usefulness and Co. continues to add upgrades,functions which extends ball game into overtime. Added 800 people in last 12 months. Cablespan, phone channels on hybrid fibers,products are starting to grow in Europe ,growth in States in future. Cablespan produced $4 million in 3rd ¬,will produce $8 million in 4th ¬ and projects to be $ 50 million sales in 1998. ATM backbone systems with virtual path cross-connects being studied-Tellabs is doing a lot in this area. Majority of 18 analysts that partcipated in questions in conference call with companies top 3 mgt. team said Congrats on solid 3rd 1/4,upgrades to follow IMHO. What came across, was a progressive,technologically based mgt. team leading Tellabs strongly in a multiitude of complex areas of growth. Release 5 upgrade with optical ring management will be included in all new systems, with 8 customers in various stages of current acceptance. Steinbrecher wireless local loop technology should provide $20-25 million in sales in 1998 in latin america, Asia yet to come? World Comm. merger with MCI is encouraging news for Tellabs. World Comm.'s goal is a seamless global network with added financing and means added real opportunities for Tellabs products. Net profit margins may go down a bit in future, but increased volume will make up for it. Mergers of various carriers has not had a negative impact on Tellabs. What they are saying is that with $600 Billion to be spent on info. Superhighway Infrastructure by the year 2000, globally it doesn't matter what the various combos of cos. is,Cos. with excellent products like Tellabs will get more than their fair share of business.(editor's comment) WDM (dense wave) can bring a lot of capacity to the fore which can be managed,filtered,groomed.brokedown into usable segments by Titan type digital cross- connect type products,so it's an real opportunity for Tellabs,which is forming teams to work in WDM arena. Dr. Paul Green's team is not up to critical mass yet, is bringing forth new developments in dense wave business. Echo cancellors represent $100 million/year of business and are part of voice transmission area , and is not as growthy an area as other parts of business. Titan products sales are 1/2new systems and 1/2 upgrades. Goal is to find new markets for them in central offices, large carriers. New feature package 5 is a nice upgrade. Internet protocols are coming on, but don't count Tellabs out of this area. $200 million in stock and $300 million in cash, means that Tellab's is on the prowl for major acquisitions, they are doing their homework now ,with announcements sometime in the future. Summary by DAVE DICKERSON

To: joe who wrote (2327)	7/23/1998 12:26:00 PM
From: pat mudge	Read Replies (1) \| Respond to of 12623

For anyone keeping track of Ciena's sector, here's an article on JDS Fitel from today's Ottawa Sun: >>> Thursday, July 23, 1998 JDS Fitel profits soar By SUSAN TAYLOR, Ottawa Sun ÿ JDS FITEL has closed the book on a banner year that saw profit soar 112% and revenue up 98% over fiscal 1997. In its fourth quarter, ending May 31, the Nepean-based firm recorded a profit of $13.9 million, 18cents a share, on sales of $66.9 million. Net earnings were up 66% over the same period last year while revenue rose 65%. For 1998, JDS recorded sales of $227.2 million, up from $115 million last year. Net income, meantime, came in at $47.6 million, 64cents a share, up from $22.5 million last year. Those results beat consensus estimates from analysts which pegged profit for the quarter at 16cents and for the year at 60cents. "That was nicely above (estimates), but not so far out that people are thrown for a tailspin," said Zita Cobb, chief financial officer. Some Bay Street analysts said there was concern that revenue would not reflect the level of growth JDS is known for, or show strong gross margins. But the fibre-optic maker proved those fears wrong, showing impressive sales increases and margins. Strong demand drove growth in the firm's three product areas. "No question, there's still an incredible thirst for bandwidth," said Cobb. The component and modules division -- the firm's main product area -- represented $147.9 million in sales during the year, up 111% over the $70 million recorded last year. Instruments products drew $47.4 million, up 111% from $22.4 million in sales last year. The resale division drew $31.8 million for the year, up 41% from $22.5 million in 1997. The U.S. continues to be the main base for JDS sales, representing 74% of all revenue. Europe pulled in about 15% of sales, followed by 7% for Asia Pacific and 3% for Canada. "Our strategy going forward will continue to emphasize the breadth of our product portfolio, the depth of our technology base and the strength and flexibility of our manufacturing infrastructure," said chief executive Jozef Straus. Despite the stellar results and strong demand, JDS has seen sluggish action on the stock market recently. "The stock really hasn't performed this year," said Gurinder Parhar, an analyst with HSBC James Capel Canada in Toronto. That's despite a huge growth surge from the firm's leading customers, such as telecommunications giants Nortel, Lucent Technologies, and Ciena. "From a company perspective, they've performed," Parhar said. "I'm very happy." Parhar had set a 16cents target for the quarter and has a $35 target for the stock in the next 12 months. Recently, JDS has made headlines as three unions lobby to represent non-management staff. "It's pretty difficult to speculate on," Cobb said of how that may impact the business. "We don't really want a union. We don't think it's going to enhance the business or lives of our employees." Many of the firm's manufacturing and semi-skilled staff earn between $9 and $13 an hour. "What investors would be concerned about is does it provide less flexibility," Parhar said of unionized staff. Increased labor costs could also be an issue. The stock, which closed trading before the results were released, rose 80cents yesterday to close at $28.40 on the Toronto Stock Exchange. >>>>