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

To: telecomguy who wrote (5522)	4/25/2000 11:22:00 PM
From: Kenneth E. Phillipps	Read Replies (2) \| Respond to of 14638

telecomguy, There was a certain lack of respect. IBD had to comment on the fact that NT share price dropped five days in a row last week. Management did a great job of keeping this information confidential. You could tell nobody knew until the results were announced. R&D as a percentage of revenue was down a small amount but that is understandable because of the huge increase in revenue. From Inter@ctive Week April 25, 2000 6:04pm Nortel surpasses 1Q expectations By Sergio G. Non ZDII Nortel Networks (NYSE: NT) hurdled the consensus estimate in the first quarter. After market close Tuesday, the network equipment vendor reported first quarter net income of $347 million, or 23 cents per share, excluding special charges. First Call's survey of 32 analysts predicted a profit of 18 cents per share for the quarter ended Mar. 31. Including acquisition-related cost and one-time events, Nortel lost $730 million, or 52 cents per share. Shares of Nortel rose as high as 114 in afterhours activity. First quarter revenue rose to $6.32 billion, a 48 percent gain from $4.29 billion in the year-ago period. Optical networking revenue increased 150 percent year-over-year. Wireless networking sales gained 45 percent. Broadband equipment revenue picked up 50 percent. The market should get even stronger for the full year, said John Roth, president and CEO. Nortel now expects the overall networking market to grow 20 percent this year, up from the company's previous expectations of 14 to 15 percent annual growth. Nortel should outgrow the market, Roth added. The company sees 30 to 35 percent revenue growth in 2000 for itself, compared to previous expectations of 20 to 21 percent improvement. Earnings per share from operations will gain about 30 percent in 2000, Roth said. Sales to service providers and carriers in the first quarter rose 64 percent year-over-year. Enterprise revenue gained 5 percent. On the expense side, R&D fell as a percentage of revenue to 13.5 mpercent, compared to 15.9 percent in the year earlier period. Sales, general and administrative costs consumed 18.9 percent of revenue, down from 19.2 percent in the first quarter of 1999. Competitors of Nortel include Cisco Systems (Nasdaq: CSCO) and Lucent Technologies (NYSE: LU). zdii.com

To: telecomguy who wrote (5522)	4/26/2000 12:01:00 AM
From: peggylynn	Respond to of 14638

Before John Roth took over NT it was a behemoth, lost in the past with an attitude problem towards its customers. I do believe your complaint about NT being a Canadian company is perfectly valid but I also believe the "old" NT worked very hard for its poor reputation. It would not surprise me if John Roth had made a very deliberate decision to keep his own counsel regarding NT's plans and successes with the analysts until he felt he had all his important ducks in a row for his business strategy going forward. There was no particular reason to alert the competition about just how far down the road NT was and John Roth has earned himself a good deal of credibility in the process. I guess it will take few more blowout quarters to gain their respect for good? If Mr. Roth keeps on executing his business plan at the current pace for the next few quarters I don't think it will matter much what the analyst's think. <g>