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

To: General Crude who wrote (4721)	1/6/1999 9:58:00 AM
From: Beltropolis Boy	Read Replies (1) \| Respond to of 7342

>Heard that too, but was the "Buyout" rumor actually denied? birck denies merger talks ... Tellabs Shares Rise Amid Optimism for Stronger Sales (Update3) Bloomberg News January 5, 1999, 5:30 p.m. PT (Adds CEO denying merger talks; that shares had largest percentage rise in more than 10 years.) Phoenix, Jan. 5 (Bloomberg) -- Tellabs Inc. shares surged 20 percent amid optimism that the phone-equipment maker will report higher fourth-quarter sales and ship more new products in the first half of this year. Tellabs rose 13 1/16 to 78 13/16 in trading of 11.1 million, almost twice the three-month average. It was the stock's largest one-day percentage increase in more than ten years. Chief Executive Michael Birck said in an interview that the company isn't involved in merger talks. He told analysts and investors at a Morgan Stanley Dean Witter technology conference in Phoenix that he didn't know why the stock rose. He spoke after the close of U.S. trading. "More buyers than sellers, I guess. I have no idea," Birck said. He said he learned of the stock's surge while his plane was on final approach to Phoenix. His secretary told him "nobody here seems to know" the reason for the surge. Lisle, Illinois-based Tellabs, which makes equipment used by local phone companies to process voice and data calls, is expected to report fourth-quarter revenue about 25 percent higher than a year ago, analysts said. Tellabs shares dropped by two- thirds in three months last year after its agreement to buy Ciena Corp. fell through, raising concern that Tellabs would lag in technology needed to boost the capacity of phone networks. Now, Tellabs is expected to have its "biggest rollout ever of new products in the next six months," said Steven Levy, an analyst with Lehman Brothers Inc., who rates Tellabs "strong buy." Ready for Testing Tellabs said that in the first half of 1999 it will have ready for testing a so-called optical terminating system, which is a component of the technology Tellabs hoped to get from Ciena. That technology lets phone companies increase the capacity of their fiber-optic networks without laying new wires. Tellabs also will unveil equipment for sending voice traffic over data networks and a so-called gateway product that makes communications traffic sent using North American-based standards compatible with European networks. "They have good balance in their product line and they're strong overseas," said J. Roger Moody, an investor with Sandpiper Synergies, a private investment firm that owns about 5,000 Tellabs shares. 30 Percent Growth Birck told investors at the conference, which was closed to the public and the media, that he expects Tellabs to report 30 percent revenue growth this year and "close to that" in earnings growth. "Our objective is 30 percent profit growth," he said. Analyst James Parmelee at CS First Boston forecast fourth- quarter revenue of about $495 million, about a quarter higher than last year on a pro forma basis. "People are confident that the quarter is tracking according to plan," said Parmelee, who rates Tellabs "strong buy." Tellabs spokesman Thomas Scottino said the company "hasn't talked to anyone today" and Birck's presentation "is the same one we've been giving since October." Early that month, the company told analysts it expected to meet fourth-quarter earnings estimates of about 59 cents a share. Analyst Levy expects earnings to reach 60 cents and others say profit could reach 61 cents or more. Also today, Tellabs shares were reiterated "strong buy" by Prudential Securities analyst John Butler, who said he expects the stock to rise to 82 in 12 months.