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

To: Engineer who wrote (15663)	8/3/2000 1:30:33 PM
From: Dan Hamilton	Respond to of 21876

Lucent Technologies reorganizes Optical Networking business; Creates two new units focused on core and metro markets -- Jeong Kim, former head of Yurie Systems, to lead optical networking unit -- Bob Barron, former head of Chromatis Networks, to lead metropolitan networking unit MURRAY HILL, NJ, Aug. 3 /CNW/ - Lucent Technologies (NYSE: LU) today announced changes in the leadership of its optical networking group as it splits the business into core and metropolitan networking units. Jeong Kim, former head of start-up Yurie Systems and currently chief operating officer of Lucent's Optical Networking Group, is being named group president of the company's Optical Networking business. Bob Barron, former head of start-up Chromatis Networks, is being named president of the company's Metropolitan Optical Networking business, which will now become part of Lucent's InterNetworking Systems Group. Kim will report to Pat Russo, executive vice president and CEO of Lucent's Service Provider Networks group. Barron will report to Janet Davidson, group president of Lucent's InterNetworking Systems. Davidson and Barron will lead an effort to integrate Lucent's broadband access, Internet infrastructure and metropolitan optical products into a single portfolio. This portfolio will focus on combining the advantages of high-speed data and broadband optical capabilities for metropolitan networks. "By focusing on the core and metro markets, we expect to see more rapid growth across our entire optical networking business and realize a greater convergence with our data networking business," said Lucent Technologies Chairman and CEO McGinn. "The metro market is where optical and data will converge first, and this alignment should accelerate the deployment of integrated networks for leading-edge customers. "Jeong Kim and Bob Barron bring considerable experience in optical and data networking to their new positions as well as extensive experience in working with emerging service providers," McGinn added. "Our goal is to leverage the entrepreneurial and technical talents we've gained through acquisitions to drive more speed into our development and delivery processes." Jeong Kim, 39, joined Lucent Technologies in May 1998 when Lucent acquired Yurie Systems, a global leader in data networking access technology. Kim founded Yurie Systems in 1992, took the company public in 1997 and made it into Business Week's No. 1 Hot Growth Company for 1997. He was also cited in USA Today as the Ernst & Young Emerging Entrepreneur of the Year. After joining Lucent, Kim became president of Lucent's Broadband/Carrier Networks organization and most recently served as chief operating officer of the Optical Networking Group. Kim will oversee Lucent's core optical networking business, which includes systems such as the WaveStar(TM) OLS 400G, the WaveStar Bandwidth Manager, the WaveStar 10G products, and the WaveStar LambdaRouter all-optical switch. He will focus the unit on building integrated core networks that combine the latest breakthroughs in optical and data networking. Bob Barron, 43, joined Lucent Technologies in June when Lucent completed its acquisition of Chromatis Networks where he was chief executive officer. Chromatis is a leader in metro optical networking systems that bring the bandwidth-expanding power of optical technology directly to businesses. Barron joined Chromatis in 1999 and helped make the company into one of Upside Magazine's Top 100 private companies in 2000. Prior to joining Chromatis, Barron held executive positions with Nokia/Diamond Lane Communications, Harris Corp., Stanford Telecom, Autek Systems Corp. and Zitel Corp. Barron will oversee a combined portfolio of Lucent and Chromatis products focused on one of the fastest growing segments of optical networking - metro optical networks. This portfolio includes: the Lucent Chromatis platform, which is the first system to integrate voice, video and data traffic on a metropolitan network using wave division multiplexing technology; the WaveStar metro products -- DataExpress 10G, AllSpectra OLS and AllMetro OLS; the Ignitus 3500 Integrated Access Switch and other related metro products. The change in the company's optical business coincides with Group President Harry Bosco's announced plans to retire after 35 years of service with the company. Lucent Technologies, headquartered in Murray Hill, N.J., USA, designs and delivers the systems, software, silicon and services for next-generation communications networks for service providers and enterprises. Backed by the research and development of Bell Labs, Lucent focuses on high-growth areas such as broadband and mobile Internet infrastructure; communications software; communications semiconductors and optoelectronics; Web-based enterprise solutions that link private and public networks; and professional network design and consulting services. For more information on Lucent Technologies, visit its Web site at lucent.com.

To: Engineer who wrote (15663)	8/3/2000 1:46:49 PM
From: shoe	Read Replies (1) \| Respond to of 21876

S&P's latest stock report on LU is optimistic (Buy, 5 stars). Herewith some excerpts: Overview - 27-JUL-00 For FY 01 (Sep.), we expect sales to increase 20%, driven by leading market positions in optical, wireless and data networking. The company's microelectronic segment continues to excel, with optoelectronic components growing at a triple-digit rate. While the company was late at rolling out OC-192 (10 gigabits per second speed) optical systems, it is ramping up production quickly. The company expects to triple its 10G business sequentially to 750 million units in the fourth quarter of FY 00. Gross margins in FY 01 will likely be around 43%, restricted by additional manufacturing capacity and weaker sales of circuit switches. Still, after a lessening of operating expenses, we see operating margins near the 17% range. After a lower tax rate of 31%, we forecast FY 01 EPS of $1.35, up 21% from our FY 00 estimate of $1.12. Valuation - 27-JUL-00 Share of this leading telecom equipment maker fell sharply after a third quarter warning of lower profit growth, due to a slower than expected product transition to next generation switches and a ramp up in optical networking. However, these issues are short term in nature and will fade as LU hits full volume production and executes on its cost reduction plan. International sales were penalized by a delay of a major long-term foreign project, which was subsequently removed from future revenue guidance, but the likely redeployment of this project could add significant upside to FY 01 estimates. Despite the near term difficulties, LU still expects a healthy 20% EPS growth for FY 01, in line with its long term grown rate. Moreover, based on a sum-of-parts model, we estimate the recently announced microelectronic spin-off adding at least $10 incremental value to the stock. The current weakness presents a buying opportunity.