No. of Recommendations: 1
Please excuse my ignorance on this matter.

My question is: Does the equipment that NT and LU sell primarily for SONET systems? Is that what they mean by "legacy" systems. My feeling is that the cutting edge players (Juniper, Sycamore, Redback, Ciena, Avanex, and maybe JDSU, ONI, CORV) are killing the larger manufacturers(LU, NT, CSCO) that are trying to both supply equipment for "legacy" systems and "fully fiber optic networks(I know there is no fully optical system yet)".

I have built the usual basket of stocks which LU was never in but NT and CSCO are. I am considering tossing NT off in the next quarter or two if they can't pull themselves out of this funk. CSCO is also on probation but I think they will pull it off.

I realize that there is a lot of capital tied up with SONET but maybe this latest slowdown is a portent of things to come. Or is this a problem which specific technologies at specific companies? I guess that is the ONE TRILLION DOLLAR question.

Any comments would be appreciated.
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