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

To: Mr.Fun who wrote (10654)	10/25/1999 2:46:00 PM
From: The Phoenix	Read Replies (1) \| Respond to of 21876

Two points... just because "that's the way we've always done it" doesn't make it the best solution. Second, support services are a benefit - unless they are a fundamental requirement to revenue recognition. Then they become life and death. OG Oh, and you can not equate Microsoft's deferal of revenues for site licenses to CO switch sales. You know that as well as I do. They are two differnt animals where benefits are accrued in different fashions.

To: Mr.Fun who wrote (10654)	10/25/1999 3:46:00 PM
From: Maverick	Read Replies (1) \| Respond to of 21876

ML: LU should meet or beat $0.28 Excerpt follows; Estimates (Sep) 1998A 1999E 2000E EPS: $0.86 $1.20 $1.55 P/E: 66.3x 47.5x 36.8x EPS Change (YoY): 39.5% 29.2% Consensus EPS: $1.20 $1.51 (First Call: 18-Oct-1999) Q4 EPS (Sep): $0.21 $0.28 Cash Flow/Share: $1.38 $1.71 $2.03 Price/Cash Flow: 41.3x 33.3x 28.1x Dividend Rate: $0.09 $0.09 $0.09 Dividend Yield: 0.2% 0.2% 0.2% Highlights: ú Lucent will report September quarter and fiscal 1999 results on the morning of Tuesday, October 26 th . In general, we expect solid results. ú Lucent should meet or beat our EPS estimate of $0.28. We expect the company to report a 20% increase in revenues to $10.3 billion. Systems for Network Operators revenues should grow by 25% to $6.6 billion, reflecting strength in wireless infrastructure, optical networking and ATM WAN businesses. Each of these businesses should increase by at least 40%. Microelectronics revenues should increase by 20% to $970 million, while Business Communications Systems revenues should grow by 4% to $2.6 billion. ú On the balance sheet, we expect DSOs to improve to 87-88 days from 92 days, and inventory turns to increase to 4.0-times from 3.7-times in the preceding quarter. We also expect the reversal of reserves to diminish significantly after this quarter. ú The bigger question is what will be the outlook going forward. At this point, we look for fiscal 2000 to be strong, with revenues up 18% to $44.8 billion and EPS of $1.55. This growth will be largely dependent on the successful introduction of new products including a 10 Gbps optical capability and a terabit IP switch. ú Our current December 1999 quarter estimates reflect 13% revenue growth to $11.0 billion and 13% EPS growth to $0.55. ú Longer-term, we still expect this stock to trade at a premium to the market at 50-times forward looking EPS. Merrill Lynch & Co. Global Securities Research & Economics Group

To: Mr.Fun who wrote (10654)	10/26/1999 8:54:00 AM
From: Diamond Jim	Respond to of 21876

Thank you Mr.Fun.

To: Mr.Fun who wrote (10654)	10/26/1999 10:35:00 AM
From: Pat Hughes	Respond to of 21876

Hi Mr. Fun, The Mighty Mizzou asked me to thank you for all your hard work and excellent posts! He'll be back soon. Pat Hughes - NEVER HAD A DOUBT! !!!!!!!!!!!!!!!!

To: Mr.Fun who wrote (10654)	10/26/1999 10:56:00 AM
From: Joe S Pack	Respond to of 21876

Mr. Fun, Thanks for posting good and well analyzed report. Nay sayers never get satisfied. Morons cannot see one plus one is two, rather they keep doubting. Kepp posting your informative posts. Garbage news media (like CNBS and Street.trash) get what they deserve and hope, someday SEC will go after them rather than small fishes. Long LU. -Nat