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

To: jack bittner who wrote (12269)	1/7/2000 1:04:00 AM
From: Chuzzlewit	Read Replies (3) \| Respond to of 21876

Jack, Basically, I saw negative operating cash flow in the face of strong earnings. I saw a decrease in the percentage provision for doubtful accounts, and I saw what I believe to be a questionable shift of A/R to a QSPE making the operating cash flow look better than it ought to be. But it also looked as if the situation was improving during the last quarter. I don't question substantial R&D spending. I would be upset if the company did not spend liberally in this area. But no company can sustain negative operating cash flow for any length of time without seeking injections of cash. The balance sheet weaknesses are high inventory and A/R levels and a lot of current debt. Hope this helps, CTC