imoney.com
This guy Sagawa misses the point that these kind of initiative doesn't impact the market within a month or two of development announcements! That's the difficulty of investing in high-tech market.......hard to assess the impact of the strategic moves going on but to completely ignore it would be foolhardy and perilous to one's pocket book.
By Susan Taylor
OTTAWA (Reuters) - Nortel Networks Corp. said Monday it has teamed up with four firms including Hewlett-Packard Co. to develop products using its Internet networking technology.
The announcement, given scant notice by the market, advances a competitive assault that Nortel, the world's No. 2 network equipment supplier, launched in November against rival Cisco Systems Inc., the world's biggest maker of equipment that powers the Internet.
Nortel has opened access to its Internet networking technology, which remains proprietary at Cisco.
Brampton, Ontario-based Nortel has now struck more than 200 licensing agreements with more than 100 firms including wireless product maker Motorola Inc. and chipmaker Intel Corp., said spokesman Carter Cromwell.
``We'll have quite a few more announcements, if things go as we expect, later this year,' Cromwell said.
The market took little notice of the news, with Nortel shares adding just C$2.60, or 1.3 percent, to trade at C$208.25 on the Toronto Stock Exchange. On New York, the issue picked up 1-6/16 to trade at 142-11/16.
``I don't think anybody's going to be going hog wild,' said Paul Sagawa, analyst at Sanford Bernstein & Co.
``If you look at the sales figures from Dell'Oro (Group) and the other market researchers, appreciably I haven't noticed any deterioration in Cisco's market share -- and I assume that's got to be the primary intention here.'
Nortel said Monday it is working with computer maker Hewlett-Packard Co. on its ProCurve line of network switches and hubs and Montreal-based Hyperchip Inc. on its petabit, a trillion bits, routers.
Nortel also said it is working with Longmont, Colarado-based network processor developer Sitera Inc. and Swedish Enea Data subsidiary, Enea OSE Systems, which develops embedded operating systems. |
