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

To: DiB who wrote (15408)	7/20/2000 7:15:05 AM
From: Jeff Jordan	Respond to of 21876

Lucent Technologies reports third fiscal quarter results lucent.com; - Revenues for Lucent's pro forma continuing operations up 20 percent; pro forma EPS rose 30 percent - Lucent unveils plan to spin off microelectronics business - Sets expectations for fourth fiscal quarter 2000 and fiscal 2001 MURRAY HILL, N.J. - Lucent Technologies (NYSE: LU) today said that pro forma earnings per share from continuing operations1 rose 30 percent to 30 cents a share, or $1.007 billion, for its third fiscal quarter ended June 30, 2000. This compares with 23 cents a share, or $732 million, in the year-ago quarter. Pro forma revenues from continuing operations increased 20 percent to $8.713 billion versus $7.245 billion a year ago. lucent.com Lucent Technologies to spin off its microelectronics business lucent.com JULY 20, 2000 - IPO for world leader in communications semiconductors planned MURRAY HILL, N.J. -- Lucent Technologies (NYSE: LU) today announced that it would spin off its microelectronics business, which includes the optoelectronics components and integrated circuits (IC) divisions, into a separate company. The new company, which will be named later, will begin its life as the world's leading provider of communications semiconductors with more than $4 billion in revenues over the last four quarters. Lucent is planning an initial public offering (IPO) for up to 20 percent of the new company and intends to spin off the remaining shares in a tax-free distribution. The IPO should take place by the end of the first calendar quarter of 2001, and the spinoff should be completed by the summer of 2001. Lucent's microelectronics business makes silicon chips and optoelectronic components, such as lasers, that are the building blocks for communications systems ranging from wireless phones and modems to Internet equipment and optical networking systems. It is focused on one of the fastest growing segments of the semiconductor market -- communications.

To: DiB who wrote (15408)	7/20/2000 7:19:48 AM
From: GVTucker	Read Replies (1) \| Respond to of 21876

LU reports 30¢ for the quarter, OK number. 4Q EPS growth is being guided to 15% growth. Last year's 4Q EPS was 30¢. 15% growth over that number is 35¢, under current consensus. 1Q '01 EPS is being guided to down 15%. FY '01 EPS is being guided to up 20%. If LU can hit the 4Q number of 35¢ (certainly not a done deal given their current track record), that puts the year at $1.26. That puts FY '01 at $1.51, again lower than current estimates. And given that the 1Q is targeted as down 15%, there's a lot of weight put on the back end of the year, as usual. More bad news, and more reason to stay away for a while longer.