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Technology Stocks : Cabletron Systems (CS: NYSE) -- Ignore unavailable to you. Want to Upgrade?

To: Kiriakos Georgiou who wrote (4790)	8/21/1998 3:14:00 PM
From: Roy F	Read Replies (1) \| Respond to of 8358

I don't know if this holds any significance for CS... Ciena hit as AT&T says will not study its products August 21, 1998 12:55 PM NEW YORK, Aug 21 (Reuters) - Shares of telecommunications equipment company CIENA Corp. CIEN lost more than 51 percent on Friday after potential customer AT&T Corp. T said it would stop evaluating its products. Ciena, which plans to merge with fellow equipment supplier Tellabs Inc. TLAB , lost 29-5/32 to 27-5/8 in heavy trading after the AT&T announcement. Tellabs added 2-3/4 to 60. AT&T had been testing Ciena's 16-channel dense wavelength division multiplexing (DWDM) systems, which increases the capacity of fiber optic phone lines and data networks. Ciena said last month that AT&T had said it would not use Ciena's 16-channel DWDM system but it may evaluate a more powerful version. But AT&T told Ciena Friday morning it will not evaluate Ciena's more powerful 40-channel system, Tellabs said. Ciena currently relies on a few customers -- Sprint Corp. FON and WorldCom Inc. WCOM -- for about 90 percent of its revenues. Some Wall Street analysts had expected Ciena to land a contract with AT&T and begin seeing revenues from those orders next year. Because of AT&T's decision, Ciena and Tellabs each adjourned their special shareholder meetings and rescheduled them for Sept. 9. At the meetings, shareholders planned to vote on the proposed Ciena-Tellabs merger. Last week, shares of Ciena and Tellabs fell sharply after Ciena said its third-quarter earnings would fall short of Wall Street expectations because of a delay in a customer order. At that time, Tellabs said the acquisition deal was intact and would not be repriced. The AT&T development, on top of the earnings warning, now casts doubt on Ciena's proposed $7.1 billion deal with Tellabs, one trader said. "The key is going to be what Tellabs is going to do," said one trader of takeover stocks, who declined to be named. He added he was "very worried" about the future of the deal. Tellabs spokesman Thomas Scottino said the company was still evaluating the situation. He said at this point he did not know what effect the AT&T development might eventually have on the proposed merger. Asked if the development might be a deal breaker, Scottino said, "I don't know at this point. We're trying to evaluate everything. Everything is happening very fast." "Both companies thought the best thing to do was adjourn until Sept. 9," he added. "People were very interested in the potential business with AT&T -- they were potentially a very large customer." (( Jessica Hall, New York newsroom 212-859-1729)) REUTERS

To: Kiriakos Georgiou who wrote (4790)	8/21/1998 4:31:00 PM
From: KLH	Respond to of 8358

Sure have lost 50% on paper as well as booked. TIE,TRID,ACCM,MRVC, etc. This has been a small/mid cap crash that started last Oct. I'm sure that others could add to the list substantially. Why should CS be any different? Karl

To: Kiriakos Georgiou who wrote (4790)	8/21/1998 4:39:00 PM
From: Roy F	Read Replies (2) \| Respond to of 8358

Considerable late buying of CS... saw a 106K block @ 15:42 hours