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

To: Immi who wrote (3018)	8/14/1998 10:09:00 PM
From: llwk7051@aol.com	Respond to of 7342

From Motley Fool- Ciena Corp. (Nasdaq: CIEN), which provides bandwidth enhancement technology for fiber-optic communications networks, was cut $17 1/16 to $54 1/8 after pre-announcing fiscal Q3 EPS (before charges) between $0.13 and $0.15, lower than the $0.34 earned last year and short of the First Call mean estimate of $0.32. The company blamed the shortfall on the delay of a $25 million order receipt and price concessions to "a large customer" in return for volume commitments. Given that Ciena derived 95% of its fiscal 1997 revenues from two clients -- WorldCom (Nasdaq: WCOM) and Sprint (NYSE: FON) -- it's a pretty safe bet that one of the two firms is the mysterious "large customer." Today's developments cast some doubt over Tellabs' (Nasdaq: TLAB) proposed acquisition of Ciena, which is scheduled to go to a shareholder vote next week. Tellabs slumped $13 11/16 to $58 1/8. I don't like paying a premium for a company that has two customers who are 95% of sales. Hopefully, Tlabs can help in that area, but that does not justify paying a premium in my opinion. Robert D.