Message-ID: <19058960.1075857282998.JavaMail.evans@thyme> Date: Fri, 27 Oct 2000 02:19:00 -0700 (PDT) From: fool@motleyfool.com To: benjamin.rogers@enron.com Subject: Breakfast With The Fool: JDS Uniphase's White-Hot Q1 Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: The Motley Fool X-To: benjamin.rogers@enron.com X-cc: X-bcc: X-Folder: \Benjamin_Rogers_Dec2000_4\Notes Folders\Motley fool e-mails X-Origin: Rogers-B X-FileName: brogers.nsf _________________________________________________________________ B R E A K F A S T W I T H T H E F O O L Friday, October 27, 2000 benjamin.rogers@enron.com _________________________________________________________________ REGISTER TO BECOME A FOOL -- GET FREE STUFF! http://www.fool.com/m.asp?i=171081 _________________________________________________________________ Sponsored By: BUYandHOLD Hey Fool! Want to know the SECRET to long-term investing? Compounding and dollar-cost averaging! Start investing with as little as $20! Just $2.99 per order! http://www.lnksrv.com/m.asp?i=171082 "For people who like peace and quiet: a phoneless cord." -- Anonymous JDS UNIPHASE'S WHITE-HOT Q1 The optical networking component maker's fiscal Q1 earnings came in looking strong. Will they be enough to reverse this week's mass sell-off in the sector? By Dave Marino-Nachison An upbeat fiscal first-quarter earnings report from fiber optic components leader JDS Uniphase (Nasdaq: JSDU) following last night's bell perked up investors in after-hours trading, pumping the stock 12%, after a 25% plummet on Wednesday. JDSU and other fiber optics companies, such as Sycamore Networks (Nasdaq: SCMR) and Ciena (Nasdaq: CIEN), have been capsized by the wake of Nortel's (NYSE: NT) earnings report from earlier in the week. (Nortel is a major customer of JDSU.) Nortel's optical networking division didn't grow as quickly as some analysts hoped, which compounded another recent disappointment from Lucent (NYSE: LU). But Rule Maker JDSU's results sparkled: Revenues rose 171% year-over-year and, at $785 million, overcame the projections of market watchers. Pro forma net income rose 29% to $0.18 per share, beating Street forecasts by two pennies. http://www.fool.com/m.asp?i=171083 http://www.fool.com/m.asp?i=171084 Now JDSU expects to earn $0.80 per share -- a dime better than expected -- for the fiscal year, CFO Tony Muller reportedly said on a conference call. He also pointed investors toward top-line growth of between 115% and 120%. "Optical demand is good and healthy," a Robertson Stephens analyst told Bloomberg. "We believe demand remains strong,'' COO Charles Abbe was quoted as saying. He maintains the company isn't seeing the inventory channel grow fat at the expense of future sales: "We can't find any meaningful evidence of an industry slowdown.'' Look for Q2 pro forma earnings of $0.19 or $0.20 per share, execs said, compared with $0.17 as projected by Wall Street. While short-term market movements are of little interest to Fools, today's trading should prove interesting as investors work to make sense of the recent rash of seemingly conflicting indications. While some might say the fiber optic sector was merely due for a "correction" of sorts, of greater importance are clues about the sort of demand that lies ahead to justify or confound even today's damaged -- but still extremely high -- valuations. Demand for the components that speed data transmissions and fatten networks to meet skyrocketing bandwidth needs isn't expected to slow significantly for the next several years. For more information, check out a column Richard McCaffery wrote back in July. http://www.fool.com/m.asp?i=171085 _________________________________________________________________ NEWS TO GO Kellogg (NYSE: K) agreed to buy Keebler Foods (NYSE: KBL) for $3.86 billion, or $42 a share, a 4.4% premium over Keebler's $40.44 close yesterday. Kellogg will triple its debt load to swallow Keebler, but buying the No. 2 cookie and cracker maker helps it diversify its core breakfast cereals business, which has seen no growth for a decade. Keebler and No. 1 snack maker Nabisco Holdings Corp. (NYSE: NA) compete in a market growing at 4% a year. Philip Morris (NYSE: MO) will join its Kraft division with its planned purchase of Nabisco Holdings, not to be confused with Nabisco Group Holdings (NYSE: NGH), to be purchased by R.J. Reynolds (NYSE: RJR). Leading biopharmaceutical company Amgen (Nasdaq: AMGN) reported a pro forma 12% increase in revenues and an 18% increase in earnings for the quarter ending September 30. However, the company forecasted slower sales for its two main revenue producers, Epogen and Neupogen, and said that approval of its Kineret rheumatoid arthritis treatment could be delayed until the second half of next year. Amgen's shares dropped to $59.50 in after-market trading, from $68.50 at the day's close. Big-shot hedge fund manager Jeffrey Vinik announced that he was returning most of the $4.2 billion in assets of Vinik Asset Management so he can spend more time with his family. Most investors remember Vinik, 41, as the manager appointed to replace legendary Peter Lynch at Fidelity's Magellan Fund. Vinik Asset Management reportedly turned in a four-year 645% return to investors, 440% after fees. Beleaguered Belgian voice recognition software maker Lernout & Hauspie Speech Products (Nasdaq: LHSP) announced it would resolve confidentiality agreements and release to Securities and Exchange Commission and European Easdaq exchange investigators the names of 30 investors in closely held companies that Lernout says are customers. These Belgian and Singaporean companies figure prominently into accusations of impropriety concerning Lernout's Asian divisions' revenues. The Wall Street Journal has run several stories hitting the company hard for alleged questionable accounting, but the company has maintained that its practices are legal and common in Europe, but misunderstood by Americans. The disclosure news sank the stock price another 35%. _________________________________________________________________ EDITORS' PICK Jeff Fischer redefines retirement as "financial independence" and talks about reaching this desirable time in life -- maybe sooner than you think! http://www.fool.com/m.asp?i=171086 _______________________________________________________________ -News & Commentary http://www.fool.com/m.asp?i=171087 -Fool Community http://www.fool.com/m.asp?i=171088 -Post of the Day http://www.fool.com/m.asp?i=171089 -Latest Fribble http://www.fool.com/m.asp?i=171090 -Latest Market Numbers http://www.fool.com/m.asp?i=171091 ____________________________________________________________ My Portfolio: http://www.fool.com/m.asp?i=171092 My Discussion Boards: http://www.fool.com/m.asp?i=171093 My Fool: http://www.fool.com/m.asp?i=171094 Fool.com Home: http://www.fool.com/m.asp?i=171095 My E-Mail Settings: http://www.fool.com/m.asp?i=171096 Sponsored By: BUYandHOLD Hey Fool! Want to know the SECRET to long-term investing? Compounding and dollar-cost averaging! Start investing with as little as $20! Just $2.99 per order! http://www.lnksrv.com/m.asp?i=171097 LAST WEEK TO ENROLL! Planning your retirement doesn't get any easier. Don't miss our Roadmap to Retirement online seminar. http://www.fool.com/m.asp?i=171098 TRY THE ALL-CASH DIET Get your spending under control with this report from Soapbox.com. http://www.lnksrv.com/m.asp?i=171099 FOOL DIRECT E-MAIL SERVICES Need to change your address or unsubscribe? You can also temporarily suspend mail delivery. Click here: http://www.fool.com/community/freemail/freemaillogin.asp?email=benjamin.rogers @enron.com> Have ideas about how we can improve the Fool Direct or new e-mail products you'd like to see? Try our discussion board: http://www.fool.com/m.asp?i=171100 ____________________________________________________ (c) Copyright 2000, The Motley Fool. All rights reserved. This material is for personal use only. Republication and redissemination, including posting to news groups, is expressly prohibited without the prior written consent of The Motley Fool. . MsgId: msg-20945-B10271037Address.msg-09:16:05(10-27-2000) X-Version: mailer-sender-master,v 1.84 X-Version: mailer-sender-daemon,v 1.84 Message-Recipient: benjamin.rogers@enron.com