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

To: Ray Zuniga who wrote (15548)	7/25/2000 11:39:00 AM
From: Aggie	Read Replies (1) \| Respond to of 21876

Ray, Good Morning, Lucent makes an acquisition. Does anyone know if this outfit makes copper-based or optical switchgear? dailynews.yahoo.com Tuesday July 25 10:22 AM ET Lucent to Buy Spring Tide Networks for $1.3 Billion NEW YORK (Reuters) - Lucent Technologies Inc., (NYSE:LU - news), the world's largest telecommunications equipment maker, on Tuesday said it would buy network switching gear provider Spring Tide Networks for about $1.3 billion in stock to broaden its product portfolio. Lucent said it will record a one-time charge for the write-off of in-process research and development, which will be taken in the quarter in which the acquisition is completed. The acquisition, expected to close by September, is expected to lower Lucent's pro forma earnings per share for continuing operations by about 1 cent in fiscal 2001. Shares of Lucent fell 2-1/4 to 48 -- a new year-low -- in trading on the New York Stock Exchange. The stock has traded as high as 84-3/16 in the past 12 months. Murray Hill, N.J.-based Lucent said in a statement it will issue about 26.8 million common shares to acquire privately held Spring Tide, headquartered in Maynard, Mass. The transaction is valued at about $1.3 billion, based on Lucent's closing price Monday of 50-1/4 on the New York Stock Exchange. That does not include the 4 percent stake Lucent already holds in Spring Tide. ``Spring Tide's people, technology and equipment will play a crucial role in our broadband Internet infrastructure strategy,'' said Janet Davidson, president of Lucent Technologies InterNetworking Systems business. The move comes less than one week after Lucent posted a third-quarter loss and cut its revenue and profit growth outlook, sending its stock down 16 percent. At that time, the company also announced the long-expected spin-off of its microelectronics unit, which makes optical components and semiconductors. The company has been working to rebuild investors' confidence since it posted a 23 percent drop in first-quarter profits due in part to its inability to make new-generation products fast enough to keep up with growing demand. For the record, I'm relatively new to Lucent, with a small initial position - looks like I may be averaging down (Crap!). I also hold positions in TXN and SCMR. Regards and Good Luck to All, Aggie