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

To: BLong who wrote (4450)	12/6/1998 7:12:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 7342

NEW YORK, Dec 4 (Reuters) - Shares of telecommunications equipment maker Tellabs Inc. <TLAB.O> gained nearly 6 percent on Friday amid speculation it would land a contract from Sprint Corp. <FON.N>, the nation's third largest long distance carrier, analysts said. Shares of Lisle, Ill.-based Tellabs rose 5.9 percent or $3.375 to $60.125 on Nasdaq. "Sprint held a conference call today and said they would be using Tellabs' ATM products for its ION network," said Raj Srikanth, a telecommunications equipment analyst with FAC Equities. ATM stands for Asynchronous Transfer Mode, a type of high speed network that allows simultaneous voice, video and data transfer. ATM gateway products connect these high speed networks to other networks, allowing a voice call or data transmission to flow seamlessly from this high-speed backbone network to a local phone network. Sprint next year plans to formally launch its new Integrated On-Demand (ION) network that will allow customers to make phone calls, send and receive faxes and cruise the Internet over a single phone line. Sprint did not immediately return calls seeking comment on whether it would use Tellabs products. Tellabs spokesman Tom Scottino declined to comment specifically on whether Tellabs may announce a new contract from Sprint, but he said an announcement on its new ATM gateway product was imminent. Tellabs has previously said it expects its new ATM gateway product to produce revenues in the range of $60 million to $100 million in 1999. Tellabs already has an existing relationship with Sprint. "Tellabs has worked with Sprint for some time. Sprint's been a very good customer," Scottino said. In addition to the potential Sprint contract, Tellabs' stock got a boost this week after the company made an upbeat presentation at the Annual CS First Boston Technology Conference in Phoenix, analysts said.