Explaining its lowered expectations for this year, 360networks said the
current business environment means it sells more short-term leased
capacity, instead of capacity in the form of long-term contracts, making it
more difficult to fund construction of its global network.
public.wsj.com
well, economy, economy...............
Analysts comments on Alcatel/360Network:
Noting that Alcatel's underwater division, part of its optics division,
counts
for less than 10 percent of overall
turnover, analysts said they did not see
much risk of major changes to
Alcatel's own full-year outlook.
``It might lead them to revise their outlook for 25 percent growth in their
optics division, but they already warned during
first-quarter results that they saw a slowdown in submarine optics. I don't
expect this delay by 360networks was a great surprise
to them,'' said CLSE analyst Emmanuel Bousquet.
``The market reaction is a bit violent but it's just because the news has
got people worried they might cut their outlook.''
Alcatel's optics division, which represented around 22 percent of 2000
turnover, includes submarine networks, optronics
components, wireless transmission, terrestrial networks and optical fibres.
The company does not give a detailed breakdown.
``This will have a big impact on Alcatel's underwater revenues as it's a
big contract business so if you lose one you lose a lot. But I
don't think this changes group forecasts for 2001 -- it's a delay not a
cancellation,'' a second analyst said.
biz.yahoo.com |
