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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: Bill who wrote (5505)	4/25/2000 4:05:00 PM
From: Paul Lee	Read Replies (1) \| Respond to of 14638

blow out Nortel Networks Reports Record First Quarter Results and Raises Outlook for 2000 - Revenues up 48% to US$6.3 Billion - EPS from Operations up 64% to US$0.23 - Outlook for 2000 - Revenue Growth in 30 to 35% range and EPS from Operations Growth Around 30% BRAMPTON, ONT. April 25 /PRNewswire/ - Nortel Networks(x) (NYSE/TSE: NT) today reported results for the first quarter of 2000 prepared in accordance with U.S. generally accepted accounting principles (GAAP). Revenues increased 48 percent to US$6.32 billion for the first quarter of 2000 from US$4.29 billion in the same period in 1999. Net earnings from operations applicable to common shares(a) for the quarter were US$347 million, or US$0.23 per share on a fully diluted basis, compared to US$193 million, or US$0.14 per share on a fully diluted basis, for the same period in 1999, an increase in earnings per share from operations of 64 percent. Including Acquisition Related Costs(a) and one-time gains and charges, Nortel Networks recorded a net loss applicable to common shares in the first quarter of 2000 of US$730 million or US$0.52 per share. Nortel Networks outstanding growth in the quarter reflected the continued market leadership for our Optical Internet, Wireless Internet and high speed Internet access solutions,'' said John Roth, president and chief executive officer, Nortel Networks. ``Since the beginning of the year, we achieved a number of significant milestones in our ongoing efforts to extend our leadership in key market segments and to streamline our operations, including: - OPTICAL CAPACITY IMPLEMENTATION: The US$400 million capacity expansion announced in November 1999 is coming on stream as planned and another US$260 million investment was announced in February to provide even more capacity by year end to meet customer demand. - GLOBAL OPTICAL INTERNET LEADERSHIP: Revenues grew more than 150 percent in the quarter over the same period last year as we continued to see strong demand for high speed optical solutions. We further strengthened our position in the marketplace and continued to drive technology discontinuities with the announced acquisitions of Xros, a provider of fully photonic switching solutions, and CoreTek, a developer of tunable lasers and next generation tunable optical components . - STRONG MOMENTUM IN WIRELESS INTERNET: Mobility revenues grew more than 45 percent in the quarter compared to the first quarter 1999 with renewed growth in South America and some key new contract announcements such as the deployment by BLU S.p.A. of a nationwide digital wireless network with packet-based, IP (Internet Protocol) backbone in Italy. We continue to advance the next generation solutions completing a series of landmark third generation (3G) wireless calls, including the industry's first wireless packet data sessions using cdma2000 1XRTT in the quarter. - CONTINUED MOMENTUM FOR HIGH-SPEED ACCESS SOLUTIONS: Revenue growth was above 50 percent again this quarter over the same period last year with momentum across the portfolio. We further strengthened our position in the broadband dial access market with the acquisition of Promatory, a leading developer of next generation Digital Subscriber Line (DSL) platforms for high speed Internet access. - FIRST MOVER ADVANTAGE IN EMERGING MARKETS AND SECOND WAVE OF eBUSINESS: We announced that EINSTEINet will utilize our professional service capabilities to create their Internet data center infrastructure in Germany. We launched the Clarify eBusiness Applications unit, combining the recent acquisitions of Clarify and Periphonics with Nortel Networks' own capabilities in customer contact centers. It will provide enterprises and service providers with business-to-business (B2B) applications and services for managing customer relationships and building virtual Internet marketplaces. - ONGOING STREAMLINING INITIATIVES: We announced the proposed outsourcing/divestiture of certain electronics manufacturing services to Solectron Corporation, the final phase of our operations streamlining strategy outlined in January 1999, and the agreement with PricewaterhouseCoopers to assume the operations of certain corporate services, including payroll, HR Info Centres and capital services. Comparing 2000 to 1999, we now see the overall market growing in the 20 percent range, up from our previous view of 14 to 15 percent. With our market leadership in a number of the high growth segments, strong order input with orders exceeding revenues again this quarter, and the incremental increases in revenues that will result from our majority owned position in certain joint ventures, we expect that our revenue growth in 2000 over 1999 will be in the 30 to 35 percent range, up from our previous view of 20 to 21 percent, and that our growth in EPS from operations in 2000 compared with 1999 will be around 30 percent,'' said John Roth.

To: Bill who wrote (5505)	4/25/2000 9:27:00 PM
From: Paul Fine	Read Replies (1) \| Respond to of 14638

Listened to conf call just now. I heard a total of 12 analysts ask questions. For what it is worth, only ONE said congratulations on the great results. These guys are always looking for negatives. Highlights: 1. NT still looking for $10B US in Optical this year. 2. Enterprise remains a disappointment. Looking for modest growth in second half(I am personally skeptical). 3. "Lackluster" Gross Margin growth(Goldman Sachs) is not due to Enterprise(which has good margins), but rather the investment in the business and share-building. 4. Backlog was 1.34. Expect to ship 85% in 2000. 5. Mfg. constraints will disappear by end of this year. 6. Wireless/CADA doing very well now and going forward. China is also doing well. 7. Versalar line is more carrier-focused now. Nearly all router code that is not Cisco is now NT, due to licensing. Those are the key points(not already in Press Release) that I picked up in the Conf Call. I welcome hearing from others who listened. Paul