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

To: Sharise Brown who wrote (4745)	1/11/1999 5:44:00 PM
From: Dave Dickerson	Read Replies (1) \| Respond to of 7342

To all here is the summary from the Morgan Stanley Dean Witter Telcom. Conference on 1/6/98 by Alkesh Shah their " all-star analyst" Tellab's is strong buy ( their top rating,with a 12 month's target of $79) Ceo Mike Birck outlined Tellab's revenue and earnings prospects for the coming year, and described the company's new gateway product. Mr. Birck stated that he expects revenue and earnings to grow 30% in 1999. Revenues from the TITAN 5500 product , he said, will likely rise 30%,though Tellab's business plan assumes only 25% growth. Revenue from echo cancelers is expected to grow well. Our estimates call for 1999 EPS of $2.40/share, a 28% increase from 1998 levels. More details were given about Tellab's new ATM gateway, called the AN2100. The product is being developed together with Sprint (fon,$82), with Tellab's contributing voice protocol expertise and Sprint and Cisco (CSCO,$97) focusing on the data side. Two OC-3 pipes carry ATM traffic into the gateway, and one OC-3 pipe carries TDM circuit traffic out of the gateway to a Class 5 switch. Data traffic is separated, and echo cancellation is incorporated. According to Mr. Birck, the gateway will obviate the need for toll tandem switches, and is expected to generate $100 million of revenue from Sprint alone, with significant revenues being recognized this year. Further development will allow Tellab's to sell the gateway to other carriers in 2000. We regard the solidifying of Tellab's relationship with Sprint through the development of this product, as strongly positive for company. Tellab's development of optical networking and ATM products is progressing well, we believe. Mr. Birck stated that new products would be announced during the year 1999. The gap in Tellab's expertise is IP; we believe that Tellab's will look to plug this gap with relatively small, non-dilutive acquisitions during 1999. We expect Tellab's to remain focused on its core customer base of the RBOCs, IXCs, and the other LECs. Potential revenue upside, we think, could come from an expansion of business in China. Good Hunting Hit $79.40 today, up 6.9 %.(already past 12 month goal) DAVE DICKERSON