Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Ciena (CIEN) -- Ignore unavailable to you. Want to Upgrade?

To: Kevin G. O'Neill who wrote (5943)	12/18/1998 1:40:00 AM
From: jach	Read Replies (1) \| Respond to of 12623

looks like the article posted got some attention probably from this segment --------------------------------------------------------- With a reduced share price, Ciena remains an attractive target for Cisco Systems and other companies rumored to be interested in it, though Chaddick would not comment on any future suitors taking Tellabs' place. But with a reduced capital base, it is also harder for Ciena to justify the significant amount of in-house manufacturing and test necessary for building its proprietary systems. The company designs its own Bragg gratings, for example, to achieve a channel density that would not be possible using discrete optical filters. Ciena also finds it necessary to manufacture its own optical amps for its systems. "We have a huge amount of money invested in developing the things we could not outsource, including assembly of opto-electronic modules," Chaddick said. "Not even Lucent goes this far, it buys a lot of its components from Corning." Provided Ciena can expand its customer base with the right prices and feature sets to appeal to the new, smaller breed of carrier, the only thing the company can do is to continue on its existing path, improving execution by delivering reliable products on time. Fortunately, Chaddick said, customers are not responding to the Wall Street turmoil. If anything, the events are giving the company a positive backlash, as existing customers and new prospects say Ciena was hammered unnecessarily in a month of events company executives would just as soon forget. ----------------------------- and then later in the day, looks like people that do not understand technology well, or for tax reason started the downward slide.