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

To: Muhney who wrote (4098)	10/16/1998 1:55:00 AM
From: Jerryco	Respond to of 7342

From Yahoo Tellabs thread: 11:57PM EDTCheck out the last analyst view following the earnigns announcement (from tomorrows Wall Street Journal): Failed Merger Doesn't Distract Tellabs, Analysts Say By Paula L. Stepankowsky LONGVIEW, Wash. (Dow Jones)--A canceled merger with Ciena Corp. (CIEN) did nothing to distract Tellabs Inc. (TLAB) from business in the third quarter, as the company posted earnings of 49 cents a diluted share Thursday, excluding charges associated with the failed merger and another successful merger. Analysts surveyed by First Call Corp. had estimated that Tellabs, based in Lisle, Ill., would earn 46 cents a diluted share, excluding merger charges. "It's hard to see any evidence of a distraction," said Steven Levy, an analyst for Lehman Brothers Inc. "I can only imagine how good the quarter would have been had they not been distracted." Wall Street had been watching Tellabs earnings closely because of overall concern about weakness in the telecommunications business, as well as the impact of the failed Ciena merger. The two telecommunications equipment makers had planned to merge, but the deal fell apart after Ciena, based in Linthicum, Md., announced a series of difficulties. Tellabs did have a successful merger with Coherent Communications Systems in the third quarter. Tellabs also reported net sales of $423.5 million in the third quarter, compared with $309.4 million a year ago. Ken Leon, an analyst with ABN AMRO, said the good third quarter for Tellabs was a combination of strong sales in core products and strong gross margins. "The upcoming fourth quarter, which ends in December, is traditionally the strongest quarter of the year, and we're optimistic results will be strong," Leon said. Leon said he expects the company to earn $1.90 in 1998 and $2.45 in 1999. Levy said the strong third quarter for Tellabs also shows that the company doesn't have to rely on its two main engines of growth over the last two years to turn in a good performance. Its two core products are the Titan digital cross connect system and the Martis DXX system. "It does have a few other bullets in the gun," Levy said. Levy said he thinks it's unfortunate that Tellabs and Ciena couldn't work their merger out. "It's unfortunate because strategically, the companies belong together," he said. "The problem was finding a valuation that was fair to both sets of shareholders." -By Paula L. Stepankowsky; 360-636-2008 TLAB: Quote \| Profile \| Research \| Insider This Is a Reply to: Msg 3542 by Germanyisthebest <- Previous Next -> Message 3546 of 3569Reply <Picture: E*Trade>Free Real Time Quotes. ------------------------------------------------------------------------