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Technology Stocks : PairGain Technologies -- Ignore unavailable to you. Want to Upgrade?

To: bronco2 who wrote (30367)	4/14/1999 6:13:00 PM
From: Jay Mowery	Read Replies (1) \| Respond to of 36349

Eric, <<<<! Hopefully the margins for adtran on the hdsl wins sucks to.>>>> They do and they're getting worse. Also something to keep in mind Eric is HDSL is "First Generation" equipment. If I'm not mistaken(I thought I heard) ADTN also was downgraded by Montgomery(or someone recently). I'm not sure on this part. But if you check around I think you can confirm. So I really don't see it as significant. It doesn't help but part of what I got out of the CC last night is that PAIR wants to be known as a systems company. NOT an HDSL company anymore. This is what I believe they have been trying to get away from for the past several quarters. "That's just my opinion though. I could be wrong!" Your buddy, Jay

To: bronco2 who wrote (30367)	4/15/1999 2:16:00 AM
From: P314159d	Respond to of 36349

To elaborate more wth Jay, the CC points out that the product shipping is HDSL 97 not HDSL 98 which has better margins. Most sales will be HDSL 98 going forward. Also the margins at SBC are offset by additional sales of the product suite that the company has. As such mgmt believs that the erosion of revenues won't be that much more significant than we have seen to date with SBC. Adtran will have GPM erosion, but win more of the HDSL business. PAIR wins more business overall at higher margin, but loses more HDSL business at low margin. I see Pair winning more gross profits than ADTN here. Then we move to HDSL-2, where PAIR is set to be the mkt leader right out of the gate.