Nortel Networks (NT) Message Board

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Technology Stocks : Nortel Networks (NT)

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To: telecomguy who wrote (5035)	3/14/2000 3:10:00 PM
From: SJS	Read Replies (1) of 14638

Nortel Networks (NT-$121.69-Cap $174B-Strong Buy) Announces Acquisition of Xros FY00E: $1.30, FY01E: $1.60 ú Nortel Networks to acquire Xros in a stock transaction valued at $3.25B; Deal to be mildly dilutive in 2000 and accretive in 2001 and is expected to close in Q2:00; No change to previous financial guidance indicating NT?s core businesses are operating above our expectations. ú Xros?s X-1000 is an ?all-optical? cross connect, enabling signals to remain in the optical domain throughout the cross connect function as opposed to undergoing an electrical conversion; The X-1000 will initially be capable of supporting 288x288 (beta this summer) and will scale to 1152x1152 (beta by December 2000); Production shipments anticipated early 2001. ú We view acquisition as a strategic positive as it minimizes time-to-market and allows NT to enhance its competitive position in the fast growing optical networking market; The X-1000 is complementary to NT?s existing optical portfolio, particularly its ultra-LH DWDM solution (Qtera); Reiterate STRONG BUY. ú CSFB acting as financial advisor to Xros in this transaction.

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