SPECIAL REPORT
See the Light
Optical stocks are tough for even the pros to figure out. The technology is mind-numbingly complex and one advancement can make products obsolete overnight. Here's a cheat sheet for some of the high-flying optical stocks.
|
| | EST. SALES | EARNINGS/LOSS* | VALUATION |
|
STOCK | Millions of Dollars |
|---|
| Ciena | $997 | $117 | $36,108 |
| What slowdown? Ciena recently told analysts they should raise their earnings estimates for fiscal 2001. The company has made smart acquisitions to boost its capabilities in the metropolitan optical and switching markets. Still, Ciena could be too small to survive on its own. It needs to get big quickly or risk getting bought. |
| Corvis | 31.8 | -131.1 | 24,687 |
| Corvis has two things going for it: Blazing-hot technology and founder David Huber, who's on his second optics company (the first was Ciena). Its long-haul transmission gear shoots signals farther than anyone else's. It hasn't reported any revenues yet, but it has $550 million in orders. The risks: Its sky-high valuation means any missteps will meet with severe Wall Street punishmentand that could boost the pressure to sell.
|
| JDS Uniphase** | 2,500** | 437.9** | 99,723 |
| The giant maker of optical components may be the closest thing to a bulletproof optics play. Equipment makers like Nortel stitch JDS-made lasers, switches, and receivers into systems to sell. Partly to add manufacturing capacity, the company agreed to spend $41 billion to acquire SDL. Wide product variety and long customer list reduce risk. |
| ONI Systems | 38.4 | -84.4 | 11,340 |
| Investors like ONI because its products add capacity in metropolitan phone networks. But, the company has a relatively small backlog of orders and its target customers are the Baby Bells, which may take their time in upgrading their networks.
|
| Sycamore Networks | 373 | 46.5 | 27,220 |
| Experts like its long-haul technology and praise its plan for "smart" switches that will blend optics and electronics. It moved into the metro market by buying Sirocco Systems. Still, the company relies heavily on one major customer, Williams Communications.
|
*All sales and earnings estimates are for calendar year 2000.
**Results are pro forma, including results of recently acquired E-Tek Dynamics.
DATA: Zacks Investment Research, I/B/E/S, First Call, Bloomberg Financial Markets, Merrill Lynch & Co., Business Week
|
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
BACK TO TOP
|
|  |
 | |
RELATED ITEMS
At the Speed of Light
TABLE: The Emerging Optical Network
TABLE: The Optical Elite
Keeping Nortel's Pedal to the Metal
``The World's Most Glamorous Cottage Industry''
The Leading Light of Fiber Optics
How High Can Optical Stocks Fly?
CHART: Riding High
TABLE: See the Light
Photo Essay: Paving the Information Highway
INTERACT
E-Mail to Business Week Online
|
