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

To: Jay Rommel who wrote (4896)	1/26/1999 10:45:00 AM
From: Sharise Brown	Read Replies (1) \| Respond to of 7342

Will TLAB hold today?

To: Jay Rommel who wrote (4896)	1/26/1999 10:47:00 AM
From: Dave Dickerson	Read Replies (3) \| Respond to of 7342

To all short report on C.C. on 1/25/99. PeterG.(CFO),BrianJ. (VP Inter.), John V., and Mike Birck CEO reported in 1/1/2 hour call,with 14 ?'s and 50% that a boy's. 4th 1/4 '98 strong sales of 521M +47% over one year ago,1998 sales were $1.6B,+38%, 4 th ¼ net was $123M or +59% and EPS diluted =$.62/s vs. $.42 last year or +49% ,total for year was $1.95/s net profit(excluding stockgain,write-off and charges) which is +44% over last year's $1.35/s ( not including 7 cents AFC gain) Editor's note normally you would see a PE of 44 with such growth gains (assuming a PEG of 1), and we have tended to have a lower range in 1998,due to Asia flu and Ciena of 18-35 PE. For year Titan sales was +38%, Martis=+36%,Echo+76% ( inc. Coherent),cable =+53% and service at $26M. Cablespan is starting to grow nicely. Net profit = a decent 33.9% of gross, R+D =11.4% of gross , about normal. Will hit $2B by 1999. Remember new goal is $4-6B by 2002,in gross sales. Continued STRONG demand for Titan,Martis, +Echo products with about 90% of sales there. For 1999 Martis sales projected to be $500M,Echo=$250M, Cable=$50-100M,Titan=$1 B and other income $100M. NEW PRODUCTS An2100 with Sprint as first customer,was $10 M in '98 with a total $ 100M gross over 3 years. Other customers are being developed. This product allows Sprint to put phone on ATM , while largely eliminating TDM network, an economical move with real cost savings,that other carriers will have to look at. Optical networking (WDMD) is on schedule, with announcements later in year. Some revenue to start first ½ of 2000.Interfacing on Titan and many other products. 532L sales up 100% over '97 to MCI-Worldcom, etc. ATM transport and switching coming along Broadband transport mgr. Will have 4th ¼ '99 release. Combined voice and data access products are forthcoming Watch Telescom and Super-com shows for new showings. Total diluted shares=199,301,000 . Cash and investments=$643,000,000.Book value=$7.08/share vs $6.35/s last year. 2/3's business is in USA, with only 2% in Brazil( but these contracts look good) and 3 % in rest of So. America . Backlog of orders for first ¼=$164M, +51%, but as usual will be down 12-16% from 4th ¼. "The overall telecom eqt. global industry shows a MAJORgrowth opportunity", and our products are needed to help carry bulk and volume of traffic and information on internet. WE ARE PREPARED FOR THE FUTURE Recent mergers (eg. GTE+Bell Atlantic,Lucent+ Ascent etc.) will hasten expansion of telecom. egt.business abroad,and are viewed as positive for Tellab's. Ciena was an education for us, but we are not frightened of future mergers,or technical buysouts. "Conservative" guidance for 1999 is the street's net $2.40/share plus 2-4 cents. Editor's goals for 1999 for Tellab's would be a target price of 42 PE times $2.45/s=$103/share,and a 2 for 1 split in first ½ 1999. A strong 1/4 and a good year with excellent prospects for 1999 ,with no slowing of growth evident. Someone please post this to Yahoo string. GOOD HUNTING DAVE DICKERSON