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To: j g cordes who wrote (20453)	4/12/1999 1:07:00 AM
From: Johnny Canuck	Respond to of 67878

Jim, >>Contract news is particularly important for AFCI. It >>doesn't seem plausible they'd hold an RBOC >>for earnings pr, Management has never done this in the past as a means to control expectations so I don't expect them to do it now. They tend to tell it as it is. If the contract comes through in that time frame it will be announced, otherwise it will get announced when and if it gets done. >>so the CC will probably be what we know already with optimistic >>forward statements... imo. It is the forward looking statements I am interested in. In the VTSS call, they stated that telecom and datacom sales were progressing well and that they expected current levels of growth to continue. Telecom/datacom was 81 percent of sales this Q. They have shipped some OC192 parts. As CIEN is the only viable OC192 vendor so far that I know of , it is possible they might have an earnings surprise. I can't imagine margins on the OC192 equipment is in trouble yet. The two acquisition by CIEN will mess up the number for the next few Q's, but if margin increase this should be a positive for the stock. The acquisitions I view as a positive as it gives them a datacom presence. There were no numbers given so it is hard to tell if there will be any impact on margins. It is something to be aware of though. Harry