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Steve Saunders 12/4/2012 | 7:15:52 PM
re: Is Sycamore Sniffing Around Sorrento? Yes, that sentence is certainly open to misinterpretation, isn't it?

I was trying to make the point (badly, apparently) that while some companies are bought primarily for their technology, or products, in this case the primary motivation for a purchase would be the customer base -- no the products.

Steve Saunders 12/4/2012 | 7:15:52 PM
re: Is Sycamore Sniffing Around Sorrento? There were three sources. And yes, they were certainly well placed.

B 12/4/2012 | 7:15:52 PM
re: Is Sycamore Sniffing Around Sorrento? Why would Sycamore want to buy Sorrento? Not chiefly for its line of metro DWDM products. But Sorrento does have two things that Sycamore would like: revenues, and heavyweight customers.

Isn't it true that without these products, Sorrento would not have these customers?


djf1970 12/4/2012 | 7:15:52 PM
re: Is Sycamore Sniffing Around Sorrento? Can I take it from your reply that your source was well placed enough to warrant anonymity?
bardia 12/4/2012 | 7:15:51 PM
re: Is Sycamore Sniffing Around Sorrento? Still, the the fact remains; if Sorrento's products presented no advantage over it's competitor's, they would not have sowed-up the lion's share of the CATV business. Additionally, if their products were not superior to their competitors' then a leading-edge technology company such as Terabeam would not have selected Sorrento's products.

I think it is a bit naive to believe the primary factor for SCMR's (and other optical companies') interest in Sorrento is the customers. I believe, after some extensive DD in Europe and San Diego, that not only is Sorrento's product much more flexible, accurate, and of general higher quality than their competitors, but they have an ACE up their sleeve as well in their all optical wavelength switch/router which is currently being field tested.

Otherwise, your article was the most informative i've seen from a 3rd party for this company in a VERY long time. keep up the good work!

Kaarthavarayan 12/4/2012 | 7:15:50 PM
re: Is Sycamore Sniffing Around Sorrento? Steven,

Sorry, it was a LOT more than semantic error in your article that people are justified in having a problem with. One just has to look at the previous articles you guys have written about Sorrento to see an obvious, undisguised negative bias.

While having a negative bias is not a crime, just do not insult our intelligence saying it was just mistaken impression caused by your choice of words. We may read lightreading regularly, but we are not THAT dumb! :-)

Do you think any of those fancy customers would be signing contracts with a shaky company like Sorrento if all they were selling was low-value products? And if SCMR just wanted the customers, for a few million dollars of marketing push they could easily get them to look at SCMR products, ... which in this case are ...? Ah, so maybe the products DO matter! You and your cohorts at Litereading may not like them, but the customers do like those products enough to pay money to put them on their networks it seems.

And what's more your "analysis" ... geeze folks, are you trying to commit professional suicide here or what? Here's the analysis: Sorrento looks like a good buy since Osicom's share price has fallen quite a bit. But ... foot in mouth dance starts here ... Sycamore is balking at buying at these levels because SYCAMORE stock has been beaten down and this might be a problem. Hmmmm...

Here's what SCMR would be telling the Street today about buying FIBR (Osicom):

Today, SCMR = $40, FIBR = $13 (on 12/28 your article's date)
So for one SCMR share (theoretically) we get 3 FIBR shares.

If we rally, here's what the prices were in March 2000. SCMR = $200, FIBR = $149. (This was when SCMR was still lustrous from its glorious IPO, and FIBR had no major announced contracts, no All-optical switch in tests with customers.)

So in that case, 1 SCMR = 4/3 = 1.333 FIBR

Which is a better deal? 3 FIBR shares for 1 SCMR now, or 1.3333 or less after a rally?

What is more, SCMR is less likely to get to the $200 valuation, while FIBR is MORE likely to get to the $150 valuation based on present trends. So is it wise to act now or wait for the rally??? Either they need to buy or not buy. The price is better now for SCMR than for FIBR. It will not likely get better for SCMR, but very well could for FIBR, especially if Lucent, Cisco or Alcatel decide to join in and make it a little more work for SCMR who is a competitor eating into their target markets.

Don't you guys see that either analytical ability or objectivity or both are lacking in your article? I am not an "expert" in Finance or Optical Networking or industry trends, yet I can poke all these holes in your article. And these are not even esoteric details, these are FUNDAMENTAL facts!!!! Does not even require a calculator.

Finally Scott Clavenna ... what a gem. Sirocco has no customers or revenues. Sorrento has customers and growing revenues, and a futuristic product portfolio. Sirocco is obviously the right thing to have bcos they have the right MINDSET!!!? Pray what mindset is that? Telling a good story? Throwing a good party for analysts? Forming Advisory Boards with big names? Giving little gifts and contracts to Analysts? Do tell do tell.

If you guys are REALLY smart, which you are showing lesser and lesser evidence of so far, you will come out with another list, not of movers and shakers, but of companies that have spent a nickel or more in entertaining any of you, in contracts for consultations and advice, any gifts or benefits of a material sort. It may not be legally required now, but it is only a matter of time before the law catches up with it. It is coming to the Analysts on the tube, and when some of the Optical Networking companies start collapsing people will want "answers" and they will ask those questions then.

You see guys, this is not a personal thing, I am just an individual investor in FIBR, and actually like reading lightreading for what used to be good articles and news reports. It is the quality of the analysis, which has been dropping that concerns me. While I do not expect New York Times standard, is tabloid the way to go? I hope not.

But if you want to be the National Enquirer or Sun or Daily Mirror of Optical Networking, do bear in mind those folks get sued a lot by some of the losers (and winners) they write about. It took "celebrities" a while to catch on to that. The Optical Networking nerds will too, sooner rather than later. We are not in High School anymore folks. Don't say you were not warned ahead of time. There are several millions riding on the startups you gossip about. When some of them start losing money, they will lash out at their critics. Just a matter of time. Playing fast and loose with facts is not the way to go. Slow down and check your facts, and your biases before you put finger to keyboard. As for first to report ... fools rush in ...

So, how much has Sirocco raised in revenue so far? How much will they in the next 3-5 years? How does it gel with what Sycamore paid for them?

Now look at the same thing for Sorrento. How much will they net in the next 3-5 years? How much do you think they can ask a Sycamore to pay for them? That is the starting point. Sycamore's stock price comes in long AFTER all of these issues are sorted out. It is that simple. Let's see how all of this plays out.
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