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

To: Diamond Jim who wrote (10687)	10/26/1999 9:29:00 AM
From: Bindusagar Reddy	Read Replies (1) \| Respond to of 21876

SOme Positive comments from Merrill Lynch..here 09:15am EDT 26-Oct-99 Merrill Lynch (Investor Support) AMCALL LU SUMMARY LU.N RESEARCH SUMMARIES:Morning Notes Summary; Part 6 ML++ML++ML Merrill Lynch Global Securities Research ML++ML++ML RESEARCH SUMMARIES Morning Notes Summary; Part 6 Investor Support Lucent Technologies, Inc. (Lu; $59 7/8; B-2-1-7) 99E $1.20; 00E $1.55 o Lucent reported September quarter results today. We would view these results as quite solid. o Revenues were $10.6 billion, about $300 million greater than we expected. o This primarily reflected strength selling equipment to the systems operators. o Operating earnings per share, excluding one time factors, were $0.31, above our $0.28 estimate. o On the balance sheet, DSO's were approximately 89 days. Our range had been for 87-88 days. o Inventory turns were 4.5-times, somewhat better than our projection of 4 times. o Lucent also sold $600 million of receivables from Saudi Arabia, helping to reduce receivables and DSO's. o Gross margins were 46% of sales, roughly a point and a half lower than our expectation and perhaps due to a reclassification occurring at the company. o Partially offsetting this however was the fact that R&D was also about 1 1/2 points lower than our projection. Thus net net the operating margin was in line with expectations. o We reiterate our long term buy recommendation on Lucent. (M. Ching)