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Technology Stocks : Ericsson overlook? -- Ignore unavailable to you. Want to Upgrade?

To: polarisnh who wrote (3656)	9/1/1999 4:32:00 AM
From: Mika Kukkanen	Read Replies (1) \| Respond to of 5390

AT&T: No meaningful impact, according to Smith Barney. AT&T Wireless constitutes less than 2% of Ericsson's revenues. Also, it seems SSB had expected the rest of the 2B contract to go to LU, when they awarded the 1B contract (to LU) way back in March or April. Mika: Lifted from the Yahoo thread, so many thanks to ToHellwithCDMA. Cheers mate! Like to take this opportunity to also thank Zoogin for his informative posts too. ---------------------------------------------------------- NT: Gains Entry to ATT Wireless Salomon Smith Barney Monday, August 30, 1999 --SUMMARY:--Nortel Networks Corp.--Telecommunications Equipment * On Friday, AT&T Wireless announced it awarded Nortel & Lucent a contract for new wireless equipment. * This is especialy positive for Nortel who has been successfully breaking into ATT on several fronts now adding wireless to its cable, optical & ciruit-to-packet business at ATT. It also secures LU's position as a major ATT Wireless supplier. * Ericsson remains a supplier to AT&T serving about 1/3 of the network. We don't believe the addition of NT to AT&T's network has any significant financial impact to ERICY who is highly likely to renew its business with ATT going forward. though at a lesser amount than if Nortel had not broken into AT&T Wireless. --EARNINGS PER SHARE-------------------------------------------------------- FYE 1 Qtr 2 Qtr 3 Qtr 4 Qtr Year Actual 12/98 EPS $0.27A $0.41A $0.42A $0.72A $1.87A Previous 12/99 EPS $0.33A $0.55A $0.55E $0.87E $2.25E Current 12/99 EPS $0.33A $0.55A $0.55E $0.87E $2.25E Previous 12/00 EPS $N/A $N/A $N/A $N/A $2.75E Current 12/00 EPS $N/A $N/A $N/A $N/A $2.75E Previous 12/01 EPS $N/A $N/A $N/A $N/A $N/A Current 12/01 EPS $N/A $N/A $N/A $N/A $N/A Footnotes: --FUNDAMENTALS-------------------------------------------------------------- Current Rank........:2M Prior:No Change Price (8/26/99).....:$43.93 P/E Ratio 12/99.....:19.5x Target Price..:$90.00 Prior:No Change P/E Ratio 12/00.....:16.0x Proj.5yr EPS Grth...:21.1% Return on Eqty 98...:16.0% Book Value/Shr(99)..:22.40 LT Debt-to-Capital(a)11.2% Dividend(99)........:$.30 Revenue (99)........:21960.00mil Yield...............:0.7% Shares Outstanding..:666.0mil Convertible.........:No Mkt. Capitalization.:29257.4mil Hedge Clause(s).....: Comments............:(a) Data as of the most recently reported quarter. Comments............: --OPINION:------------------------------------------------------------------ AT&T WIRELESS EXPANDS ITS VENDOR STRATEGY TO INCLUDE NORTEL NETWORKS. On Friday, AT&T Wireless announced a multi-vendor strategy to increase its wireless network capacity and reliability. AT&T signed letters of intent to install new equipment by Nortel and Lucent. This is especially positive for Nortel who had not previously been a wireless supplier to ATT. Additionally, it expands Nortel's business with ATT to include wireless in addition to the business it has recently won in the areas of optical, cable and circuit-to-packet equipment. Moreover, it highlights how Nortel's wireless business is getting back on track for the year. For Lucent, this award solidifies the company's position as a major wireless supplier to AT&T Wireless. A PSYCHOLOGIGAL NEGATIVE, BUT NO MEANINGFUL FINANCIAL IMPACT TO ERICSSON. We don't believe that AT&T's multi-vendor strategy will have any meaningful financial impact to Ericsson. While a very important customer, AT&T Wireless represents less than 2% of Ericsson's overall revenues. Additionally, the company continues to do a healthy business with Ericsson in 1999 and is highly likely to continue its supply agreements with AT&T Wireless for the forseeable future. Ericsson serves about 1/3 of AT&T's wireless network. ---------------------------------------------------------------------- Thanx again to ToHell....