In recent years, networks of fiber-optic cable have been replacing electrical wire for transmitting telecommunications signals. Signals running through fiber-optic cables deteriorate, and so the signals must be run through a piece of equipment called a regenerator before being transmitted farther. Light-Line is the leading manufacturer of signal regenerators. Ttherefore, Light-Line is one of the companies that will most benefit if new long-distance fiber-optic telecommunications networks are constructed.
 Expanding its production of regenerators will require Light-Line to spend proportionately more on labor and materials casts the most doubt on the prediction about Light-Line's prospects.