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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: The Phoenix who wrote (9109)	8/10/1999 4:55:00 PM
From: Techplayer	Read Replies (3) \| Respond to of 21876

Gary, From what I understand the strengths to be in regards to INS and NetCare ( I believe this to be the new name of the services organization at LU), there is not a significant overlap. ASND certainly had the people attending to the big customers, but not the 10000 or so small businesses being attended to by INS. The routing experience brought to LU in this package is also an asset not found presently with NetCare. This news was from last week as well..(retaining 850 million dollar small business group). techstocks.com It could be a shot at CSCO, but I think it is more that LU has the ability now to get info on CSCO customers and products that they previously did not have. LU truly has the goal of being a networking behemoth. Having a service organization of this magnitude and expertise will be instrumental in bidding for and deploying networks. Professional services (as you know with the KPMG deal) is expected to be a growth business going forward. From what I have read, it seems that the large telcos ultimately want to manage their clients networks, which could be done with an organization like INS through LU. A value add for LU there. Given the size of LU, different organizations will be dealing with the issues associated with the integration of each acquisition. The people in Westford already consider themselves integrated. Things are running smoothly and feverishly. I would not expect any effects to linger with this. Business as usual. (much like the integration of Geotel with CSCO) Overall, I expect a smooth integration but do not know what the effects of acquisition costs will be. Typically, there are 2 numbers anyway. The eps and eps including costs (CSCO must be doing that with Geotel right now) so I would not expect LU to take an extra hit in October (on top of the expected one). This quarter is expected to exceed all present analysts predictions (per Mcginn in the last CC). Aside from pooling of interests, has there been a breakdown of estimated costs associated with the acquisition? without seeing how much extra expense will be associated, it will be difficult to tell. The revenue and earnings growth rates look great for the long term. 12Xrevenues is actually cheaper than ASND... REVENUE Quarters 1996 1997 1998 1999 SEP 7,506 18,888 33,946 64,396 DEC 9,610 23,337 38,838 73,846 MAR 12,170 26,539 46,047 82,704 JUN 14,806 30,511 52,458 94,143* Totals 44,092 99,275 171,289 315,089* Note: Units in Thousands of U.S. Dollars EARNINGS PER SHARE Quarters 1996 1997 1998 1999 SEP 0.013 0.022 0.060 0.110 DEC 0.013 0.033 0.053 0.013 MAR 0.013 0.040 0.070 0.140 JUN -0.007 0.053 0.100 0.160* Totals 0.032 0.148 0.283 0.423* Note: Units in U.S. Dollars Overall, if it adds to the bottom line and aids in LU's goal of becoming an international networking behemoth, this is a good acquisition. Dissect away. brian