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

To: Bruce Jordan who wrote (4126)	10/16/1998 3:06:00 PM
From: Baldwin	Read Replies (1) \| Respond to of 7342

Bruce, your answer: fnews.yahoo.com FOOL PLATE SPECIAL An Investment Opinion by Alex Schay Tellabs Soothes Tellabs (Nasdaq:TLAB - news) , a designer, manufacturer, and service provider of telecommunications voice and data equipment, rang up $5 3/16 to $43 15/16 after reporting its 29th consecutive quarter of year-over-year earnings growth. The company's third quarter saw record top line and bottom line growth, eclipsing the prior record that was set in the second quarter. Third quarter sales were $423.5 million, which was the highest for any quarter in the company's history, and up 36.9% from sales in the prior year's Q3. Net income for the third quarter was $87.7 million up 36.5% from a year earlier (or $0.49 per fully diluted share excluding the $0.04 merger charge, beating the $0.46 estimate) -- and 50% greater than the comparable period net of the charge taken for its merger with Coherent. As with the previous quarter, strong sales of the company's flagship Titan 5500 digital cross connect system led the revenue charge, picking up 49% of the top line. The company's failed merger attempt with Ciena (Nasdaq:CIEN - news) and questions about its product pipeline (particularly the Wave Division Multiplexing strength that it was going to buy from Ciena) combined with looming recessionary concerns had many investors wondering about Tellabs' future. Recession? What recession? Tellabs went out of the way in its conference call (Replay: 1-800-633-8284. When prompted, enter the Tellabs reservation number 1627780) to downplay recessionary fears in the telecommunications equipment marketplace that it serves. With analysts having modeled -- with no SG&A synergies -- a Tellabs/Ciena combination EPS estimate of $2.20 for 1999, the company's current suggestion that it could hit $2.40 by itself next year (on revenues of $2.1-$2.2 billion) has investors scrambling to bid the company up. In addition, helping things along was Tellab's projection that regional bell operating companies' spending will be up 15% in 1999, as well as competitive interexchange carrier, competitive local exchange carrier, and competitive access provider spending, which will climb on the order of 30-40% -- with possible upside on that number too. More immediately, Tellabs reported that it's comfortable with the fourth quarter EPS projection of $0.58 on revenues of $490-500 million. In Q4 the firm will see a double-size version of its Titan SONET product begin to ship, which should provide some possible upside to this figure as well. All this serves to highlight the fact that the $200 billion telecommunications infrastructure market is indeed in the throes of a global transition and is still in the nascent stages of a multi-decade spending cycle. Questions surrounding capital investment center more around necessity than want.

To: Bruce Jordan who wrote (4126)	10/16/1998 3:13:00 PM
From: Baldwin	Respond to of 7342

This lifted from Yahoo thread: Words from Birck about TLAB furture efforts and ...liulewen (M/Batavia, IL) Oct 16 1998 2:39PM EDT ''I think that's just a little catch up,'' Birck said of today's jump. ''The negative side has been emphasized so long.'' Birck took steps to allay lingering concerns that Tellabs relies too much on its two current key products -- its TITAN digital cross connect system and MartisDXX -- while telecommunications networks are changing. These products make telecommunications networks easier to manage and more reliable, Tellabs said. He said for competitive reasons, Tellabs has been tight-lipped about much of its research and development projects. Nonetheless, he said the company will release this quarter an ATM interworking product, which will help customers migrate from today's technology to future networks. Tellabs is also continuing to make developments in echo cancelers and dense wave technology, which increases the capacity of fiber optic networks, he said. ''It gave the false impression that we weren't doing much about the future and the only hope we had was to acquire,'' Birck said. ''That is definitely not the case.'' Birck said while the turmoil surrounding the Ciena deal difficult, in the end the termination of the deal was for the better, as Ciena's key products are faced with stiff competition and pricing pressure. ''If things had continued the way they were in May and early June, that was a great thing to do for us,'' Birck said of the Ciena deal. ''As things turned out, given that kind of environment ... I'm glad it came out the way it did.'' Words from Birck about TLAB furture efforts and ...liulewen (M/Batavia, IL) Oct 16 1998 2:39PM EDT''I think that's just a little catch up,'' Birck said of today's jump. ''The negative side has been emphasized so long.'' Birck took steps to allay lingering concerns that Tellabs relies too much on its two current key products -- its TITAN digital cross connect system and MartisDXX -- while telecommunications networks are changing. These products make telecommunications networks easier to manage and more reliable, Tellabs said. He said for competitive reasons, Tellabs has been tight-lipped about much of its research and development projects. Nonetheless, he said the company will release this quarter an ATM interworking product, which will help customers migrate from today's technology to future networks. Tellabs is also continuing to make developments in echo cancelers and dense wave technology, which increases the capacity of fiber optic networks, he said. ''It gave the false impression that we weren't doing much about the future and the only hope we had was to acquire,'' Birck said. ''That is definitely not the case.'' Birck said while the turmoil surrounding the Ciena deal difficult, in the end the termination of the deal was for the better, as Ciena's key products are faced with stiff competition and pricing pressure. ''If things had continued the way they were in May and early June, that was a great thing to do for us,'' Birck said of the Ciena deal. ''As things turned out, given that kind of environment ... I'm glad it came out the way it did.''

To: Bruce Jordan who wrote (4126)	10/16/1998 3:57:00 PM
From: pass pass	Read Replies (1) \| Respond to of 7342

The question now is how else can TLAB acquire/develop what they need to stay in the game. How about NN? I heard NN has a division Cambian(?) that makes DWDM stuff.

To: Bruce Jordan who wrote (4126)	10/16/1998 4:22:00 PM
From: R Verchota	Read Replies (1) \| Respond to of 7342

TLAB future without Ciena is not bleak, listen to the CC before it is not available. Ciena was targeted to help the INTERNAL product development which has been ONGOING for quite some time. TLAB has a "formidable" team working on their next generation products. They are not sitting around hoping to acquire a future. Bob V.