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

To: Techplayer who wrote (12930)	1/24/2000 12:32:00 AM
From: Techplayer	Respond to of 21876

Report: Lucent down, not out By CBS MarketWatch Last Update: 3:37 PM ET Jan 22, 2000 NewsWatch NEW YORK (CBS.MW) -- Widely-held Lucent Technologies should be able to recover from its recent slump, a published report said Saturday. Despite a big selloff in its stock and its first lower-than-expected earnings report in 15 quarters, Lucent (LU: news, msgs) has enough new products to capture customers migrating from circuits to packets in the networking business, Barron's reported. The article quoted Robertson Stephens Analyst Paul Silverstein, who called Lucent's shares are a buy after a bruising selloff of about one third to a recent $52. On Thursday, the world's largest maker of telephone equipment reported a 23 percent drop in first-quarter profits, in line with the company's reduced expectations. Earlier this month, Lucent warned profits would fall short of Wall Street projections, blaming bottlenecks in the production of some next-generation telecommunications gear and delays in customer purchases of others. See related story. Today on CBS MarketWatch Time Warner, EMI to merge music divisions Sauer buys Danish hydraulics company for $259 million G-7 sees better prospects for global economy Liquid Audio has Microsoft deal Wage data expected to show low inflation CBS MarketWatch Weekend preview More top stories... CBS MarketWatch Columns Updated: 01/23/2000 4:48:56 PM ET In the latest quarter, which ended Dec. 31, the equipment maker said it earned $1.18 billion, or 36 cents a share, down from $1.52 billion, or 48 cents, a year ago, excluding special items. That's at the low end of the range (36 cents to 39 cents) that Lucent executives gave analysts in its warning. Lucent is also expecting a slower second quarter, but executives have said results should improve in the second half of the year as production bottlenecks are eliminated and customers ratchet up purchases after the passing of the year 2000 computer problem. "As we've said, we're disappointed with our results for the quarter," said Richard McGinn, Lucent's chief executive. "However, industry growth is strong, and we are well positioned to take advantage of that growth." Still, some analysts question whether Lucent can meet its earnings targets for the full year and say the warning benefits rivals such as Nortel Networks (NT: news, msgs) and Cisco Systems (CSCO: news, msgs), which have not encountered similar problems.