Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: KevRupert who wrote (15887)	9/3/2000 1:32:52 PM
From: KevRupert	Read Replies (1) \| Respond to of 21876

Nortel President Comments on LU's Blunders: My take: Don has done a fantastic job. McGinn has not. Has the board of directors given a reason why McGinn still is employed? The competition is basically saying that Lucent's management was asleep at the wheel. Streetside Chat The TSC Streetside Chat: Don Smith of Nortel By Scott Moritz Staff Reporter 9/2/00 12:22 PM ET URL: thestreet.com "....Nortel (NT:NYSE) has become the gorilla of networking primarily by seizing early on the trend toward optical equipment. The company's optical revenue this year will exceed $10 billion, making it far and away the dominant seller of new, high-capacity communications gear. Nortel managed to hit its stride just as network builders were clamoring for the type of equipment that would help them accommodate the explosion of Internet traffic. Now Don Smith, Nortel's president of optical Internet, tells TheStreet.com's Scott Moritz how Nortel was able to beat Lucent (LU:NYSE) at its own game and what he thinks of the always threatening Cisco (CSCO:Nasdaq) breathing down his neck. Smith defines the terms of engagement, reveals his secret of talent retention, credits an academic for helping his company see the light and says Nortel has all the pieces to build a bigger and better Internet. TSC: So in light of Lucent's purchase of Chromatis and Sycamore's (SCMR:Nasdaq) buy of Sirocco, optical metro systems seem to be the place to be. Don Smith: The industry is abuzz about optical. A couple years ago, everywhere you turned you'd bump into DSL. And 71 DSL guys ran the universe. Well, we've seen the decline of DSL, and the same is going to happen in optical. TSC: A shakeout ahead perhaps? Don Smith: Yes. You and I can walk into an investment bank or a VC firm with a nominal business plan, or maybe, if we were well-known guys, not even a business plan, but just something with the name optical on it, and we'd get funded. It doesn't mean it's a unique or innovative or a new thing to do, it's just that people are willing to place a lot of bets right now. TSC: Which brings me to talent retention. Lucent has had a rough time trying to hang on to its staff. And I imagine, to a lesser degree, that you've had similar problems. How do you address this? Don Smith: I think there's some fundamentals about retaining people. First of all, you'll never retain 100%; it just isn't doable. The second thing is, people like to win and they like to grow. They like to be able to understand their contribution and see what it means and be recognized by their peers for that. They want to absolutely feel part of a team. TSC: Let me bring it back to Lucent again. What will the spin out of Lucent's microelectronics business mean for you? Don Smith: It's fair to say that we're a customer. We buy more of the stuff that makes optical systems work than any other purchaser in the world. We probably buy over 40% of the world's production, so that tells you we work with all the major suppliers. And they work with us. TSC: Is there a conflict when you are buying from your closest competitor? Don Smith: No, I don't think so. TSC: They may get a good view of what you're putting together and maybe use that competitive knowledge... TSC: Last Lucent question: As Nortel was making its dramatic right-hand turn into optics, Lucent seemingly missed it. What do you think happened? Don Smith: They slid off at the bend. Christensen wrote The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail]. Christensen really helped us train some of our thinking....."

To: KevRupert who wrote (15887)	9/3/2000 4:10:59 PM
From: KevRupert	Read Replies (1) \| Respond to of 21876

Telecom equipment providers may regret loans: Barron's NEW YORK, Sept 3 (Reuters) - Telecommunications equipment makers may soon regret their practice of financing sales to customers buying their products, according to an article in the Sept. 4 edition of Barron's. The article questions the practice by Cisco Systems (NASDAQ: CSCO), Ericsson , Nokia , Nortel Networks Corp. (NYSE: NT), Lucent Technologies Inc.(NYSE: LU) and Alcatel , which help the upstart telecommunications service providers arrange bank financing. If none is found, the equipment makers sometimes take it upon themselves to help finance the purchase, the weekly newspaper said. The article questions whether telecommunications equipment manufacturers may someday have to write off some portion of their loans and commitment to make loans, which Barron's said now amounts to about $8.7 billion. The article was prompted after Lucent ran into trouble trying to sell some of the loans it extended to WinStar Communications Inc. (NASDAQ: WCII) as part of a $2 billion financing package that allowed WinStar to buy equipment from Lucent, Barron's said. Lucent began offering the loans at a discount, sending WinStar's junk bonds into a slide. The sale never occurred, according to Barron's. As service providers race to build their networks, Barron's said the question now asked is where are they going to find the financing for the next big round of build outs if the equipment makers become reluctant? Answers may include selling the loans directly to junk-bond investors or selling batches of loans into the asset-backed market, Barron's said.