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Technology Stocks : Alcatel (ALA) and France -- Ignore unavailable to you. Want to Upgrade?

To: Steve Fancy who wrote (1795)	5/16/2000 6:34:00 AM
From: MikeM54321	Read Replies (1) \| Respond to of 3891

Steve- For a look at their reported net income loss in 99Q1 see this slide at: alcatel.com To add further confusion, check out this slide at: alcatel.com Apparently they may be using the same conversion rate of 1 EUR = .9574 USD for comparing both 1999 and 2000 results? If so, I'm at a loss as to why they would do this. But let's say they did use your referenced May 1999 figure of 1 EUR = 1.08 USD, this certainly would not account for their reported 42% growth versus what I see as 4% growth(per MS Investor). As I study this further, I'm afraid it may be coming down to differing accounting/reporting standards between France and US GAAP. As to your comments about investing in ADR's of foreign based companies, you hit the nail on the head as to the risk of doing this- currency conversions. And as you say, it works both ways and depends upon how you look at it. In general investors don't like uncertainty, and currency conversions add another element that has to be taken into account. Wasn't it Sony that just warned about an earnings miss due to the strengthening yen? If(of which I have my doubts it will anytime soon) the euro swings the other way, then it won't be good for ALA euro reported figures. But now, with a weakening euro, it makes their yr/yr comparisons look better AND makes them more price competitive against US based companies. Of course this only applies if the foreign based company generates substantial sales and competes in the US marketplace. I'm very surprised the analysts that get paid for doing this sort of thing, have not come out with a report that would explain the numbers better for US Alcatel investors. I'm still waiting for MS Investor to report 00Q1 on their website. I'm sure they must be as confused as I am when doing the simple top line(not to mention bottom line) comparisons in USD. If you, or anyone else, have another url that reports historic quarterly results, please let me know. I rely on MS Investor so much, I haven't bookmarked any other sites that do so. -MikeM(From Florida)

To: Steve Fancy who wrote (1795)	5/16/2000 10:23:00 AM
From: Gilbert Drapeau	Read Replies (1) \| Respond to of 3891

Merger of Newbridge Networks Corporation and Alcatel Approved by Newbridge Securityholders MAY 16, 2000 KANATA, ONTARIO--Newbridge Networks Corporation (NYSE: NN; TSE: NNC) today announced that the holders of common shares, options and warrants of Newbridge have approved the Plan of Arrangement involving a merger between Alcatel (NYSE: ALA) and Newbridge. Over 99 percent of the votes cast at the Newbridge meeting were voted in favour of the Plan of Arrangement. Completion of the merger is conditional upon Alcatel shareholder approval, a final order from the Ontario Superior Court of Justice, other regulatory approvals and customary closing conditions. The court hearing to obtain the final order is scheduled to take place on or about May 23, 2000 (adjourned from May 18, 2000). Newbridge expects the merger to be completed by the end of May 2000. Newbridge Networks Corporation designs, manufactures, markets and services wide area networking solutions for service providers in more than 100 countries. On February 23, 2000, Newbridge entered into a definitive agreement to be acquired by Alcatel, a world leader in end-to-end voice and data communications solutions systems. Alcatel's leadership in broadband access combined with the Newbridge leadership in ATM/MPLS/IP switched routing will make it one of the top players in the next generation networking market with complete, end-to-end communication solutions. Current Newbridge customers include the world's 350 largest telecommunications service providers. The Company employs more than 6,000 people on six continents. News and information are available at www.newbridge.com. Newbridge and logo are registered trademarks of Newbridge Networks Corporation.