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

To: GVTucker who wrote (10765)	10/28/1999 12:30:00 PM
From: Anonymous	Read Replies (3) \| Respond to of 21876

"I still think that the earnings report looked sloppy. It is quite possible that others, upon further review, are beginning to agree with me." Then you better sell quickly~!

To: GVTucker who wrote (10765)	10/28/1999 12:35:00 PM
From: GVTucker	Read Replies (2) \| Respond to of 21876

I guess I should elaborate on the key things that I think makes the earnings report 'sloppy.' 1. Tax rate. The tax rate was lower than LU's guidance. If I use the tax rate per previous company guidance, operating earnings come out to $0.29. There goes most of the upside surprise. 2. A/R DSO. This number was way above what we were promised last quarter. And if you back out the factoring of the sale to Saudi Arabia, there was no improvement at all. 3. Sales to corporate customers was flat. This is probably the item that could be thought to be most dependable. Network Systems (i.e. RBOCs) delivered the upside revenue surprise, and this business cannot be depended upon.