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Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: zbyslaw owczarczyk who wrote (11751)	6/3/1999 2:27:00 PM
From: pat mudge	Respond to of 18016

A few comments from yesterday's speakers at UCSD's Connect conference: Steve Dominic from Sevin Rosen Funds: * Networks increasingly photonic (speaking of DWDM long haul and metro) * Must deliver more performance to the curb * Customer wants solutions --- not single boxes * Doing more component deals, not box deals. . . carriers will provide services and solutions. Bruce Graham from Besemer Venture Partners: * Communications boxes, e-commerce, and communications services are all hot. * Optical growing so fast no one can know all the technology. * Looking for teams who understand communications applications. * Specifically looking for low power ICs, silicon germanium, and high-speed optical. * UNPH, JDS, SDLI, ETEK, and Corning are acquirers of these technologies. * Need OC/192 enablers. Henry Mattheson from Prudential Securities (VC division): * M&A activity: 1999 --- 302 issues so far, raised $56 BN; 140 IPOs at $20 BN, 162 follow-ons at $36 BN; deal size $142 M vs. $78 M in '98; aftermarket up 74%; IPOs --- Internet 44%, technology 24%, and telecommunications 11%. * May inputs into equities will be positive --- should have brisk summer re: pricing IPOs. * M&A drivers: industry consolidation, convergence of voice/data, circuit/packet, enterprise/service provider. * Companies want end-to-end solutions. * Valuations? "40X is not bad." 3X revenues. * GEC (UK) --- what you'll see out of this is 4 or 5 start-ups (out of FORE) * Is integration working? "Well, take Lucent as an example, do you see any YURI products on the market????" * Network management is serious problem --- policy-based management solutions needed. * Wireless --- point-to-point: no one's done it yet. Wireless LAN has lots of potential. Several panels spoke on trends --- with wireless networking a common theme. And speaking of mobile systems, my question is, with 3G several years away, who'll fill the data-bandwidth gap in the interim? Guy from Nortel said 3G will hit Japan first, probably in 2001, and in the rest of the world by 2003/2004. After the formal presentations, I spoke with an EVP from SAIC who said he wasn't interested in core networks --- the last mile is the sweet spot, he said. That's where the congestion is. That's where the focus has to be. He confirmed fixed wireless is taking off, along with cable and DSL. Providers will offer transparent services. No one will care what it is as long as it's reliable and fast. I also talked to several guys from NextLink who confirmed they're beginning trials and at the end of 6 mos will begin offering services in selected cities. I'll try to find out specifics at SuperComm. I'm wondering if they'll wait the whole six months before ramping in each city. That's it for now. Pat