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Technology Stocks : Harmonic Lightwaves (HLIT) -- Ignore unavailable to you. Want to Upgrade?

To: Hiram Walker who wrote (2495)	9/8/1998 10:18:00 PM
From: ahhaha	Read Replies (3) \| Respond to of 4134

If there is a substantial increase in orders for the company's products, initially costs will rise faster than revenues and margins will be squeezed. Currently the company sports high marginal costs. It would take an extended period of high level of sales before the marginal costs would abate and scale would releverage margins. The extended period would be at least 3 quarters. The growth would have to be steady without excess acceleration because rising increments of sales accelerate costs. So the company needs good growth, not accelerating demand. What is happening is very weak sales. The stock has busted through a major bottom and shows no rally potential. The consolidation structure is textbook short sale opportunity. Every trade analysis shows aggressive intent to get out of this stock and there is little short covering. The phase is similar to what happened 1 year ago. Once the rally in the generals is over, they'll start dumping underperformers and institutions will dump HLIT. The current price structure suggests a downside target of 4. Upside potential looks like 10 1/8.

To: Hiram Walker who wrote (2495)	9/9/1998 5:44:00 AM
From: MikeM54321	Respond to of 4134

"DWDM isn't needed now nor is it applicable. When you have 30 million cable customers and overloaded backbones at scale, then you'll have demand for DWDM. It's overkill now and it could not be stably installed because of little operating history." ahhaha, Maybe there is a use for DWDM. Not because of an overload factor, but ease of installation? Just a complete guess on my part. It appears HLIT offers a quick solution to those MSO's wanting to offer two-way services quickly. MikeM(From Florida) PS Tim, I wasn't sure if you already posted this article. I thought you may have. _______________________________ Harmonic Lightwaves Announces Deployment of Cable Television's First Fully Operational DWDM System SUNNYVALE, Calif.--Sept. 1, 1998--Marking the cable television industry's first deployment of a fully operational eight wavelength, forward and return-path Dense Wave Division Multiplexing (DWDM) system, Harmonic Lightwaves, Inc. HLIT today announced that the company's METROLink(TM) DWDM system is being used by a major MSO to provide 13,000 homes in the Dallas area with video services and high-speed Internet access. Installation of the two-way METROLink system required only three days to complete, with an engineering team from Harmonic working closely with local system engineers. The upgraded hybrid fiber/coax (HFC) network consists of a single headend feeding two hubs which in turn feed 54 optical nodes that pass 13,000 homes. With METROLink, the system is now fully-two way, enabling the operator to offer high-speed Internet access via cable modem. In addition to this installation, five hybrid METROLink systems have also been deployed in the operator's Dallas-area network. In these hybrid installations, one or both of the networks' paths are coarse WDM, with digital information being transmitted at 1550 nm and combined with analog video at 1310 nm. Currently 135,200 homes in the Dallas metro area are passed by METROLink-enabled systems. "As the industry's first commercially deployed true DWDM system, this METROLink installation is a milestone for Harmonic and the cable television industry," said John Trail, Harmonic's director of transmitter systems. "The straightforward deployment of this full eight wavelength, forward and return system demonstrates the high quality and plug-and-play nature of the METROLink product line. "The speed with which the system was installed illustrates how METROLink can enable the rapid upgrade of HFC networks for delivery of two-way services." A variety of coarse and dense WDM METROLink systems have also been deployed by the operator in its Baton Rouge, La.; Olympia, Wash. and Vancouver, Wash. systems.