Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : TLAB info? -- Ignore unavailable to you. Want to Upgrade?

To: llwk7051@aol.com who wrote (3005)	8/14/1998 5:03:00 PM
From: P.T.Burnem	Respond to of 7342

If the market had believed that the deal would go through in it's original form, CIEN and TLAB would not have closed 4 points apart.

To: llwk7051@aol.com who wrote (3005)	8/14/1998 5:25:00 PM
From: Doughboy	Read Replies (3) \| Respond to of 7342

I don't know anything about the information you provide WRT why AT&T chose LU over CIEN. According to Patrick Nettles, CIEN's CEO, AT&T was testing both LU and CIEN 16 channel DWDM, but their recently announced workforce reduction required them to cut-back to one supplier. So it is an unqualified win for LU, but not such a big loss for CIEN. Chalk it up to T simply realizing that it makes no sense to devote its resources to maintaining TWO suppliers of 16 channel which is simply going to be antiquated when 40, 80, and 96 are all here or coming. If T is smart, a BIG assumption, it will groom LU for one product and CIEN for the next generation, and allow them to leapfrog each other ad infinitum. More importantly, I think this only points out that it will take a while for TLAB shareholders to get used to CIEN's business model. CIEN is a nascent company, with huge, but very few, customers. WSJ said WCOM and Sprint make up 96% of revenue. That means CIEN can't make up for 25 million here 25 million there like LU and TLAB can when there is a shortfall (That's a rounding error to LU). That makes for constant, minute focus on customer contracts. And that also leads to big gyrations quarter to quarter. Down the road, CIEN's going to add a huge customer like AT&T or BT or Concert or QWEST, and we'll be off to the races again. DougHboy.