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

To: hdl who wrote (17764)	3/1/2001 1:53:22 PM
From: elmatador	Respond to of 21876

Ericsson ousts Lucent from vendor top spot By Andrew Hillier, Total Telecom 01 March 2001 Ericsson overtook Lucent Technologies Inc. as the leading telecoms equipment manufacturer in 2000, according to research firm Gartner Dataquest. The study found that a growth in demand for the Swedish equipment vendor's network technology and its investment in 3G had resulted in an increase in its worldwide sales. Lucent's decision to spin out its networking equipment unit Avaya meant that it slipped down the pecking order to fourth position behind Canada's Nortel Networks and Nokia, of Finland. Dean Eyers, group vice-president at Gartner Dataquest, said 2000 had been a good year for the telecoms equipment manufacturers, with most achieving double-digit growth, but warned that 2001 may not prove as fruitful. "Whether there is an actual recession or not, there will be a paring back in 2001," he said. Eyers added that over the next 12 months he expects the demand for services to slow and to see "reduced or delayed investments in networks and applications." He said that a number of customers will also disappear and that an increasing number of telcos will look to patch up their existing enterprise networks rather than overhaul or replace them. According to the report, Ericsson stole the lead after its revenue jumped 21.5% to US$31.3 billion, while former number one Lucent saw its revenue drop 23.5% to $25.8 billion following the spin-off of Avaya. The combined Lucent-Avaya figures for the year would have been $33 billion, which would have been enough to retain the top spot. Out of the leading eight companies in the sector, Cisco Systems was the biggest gainer after its revenue soared 59.3% to $23.9 billion. The analyst group warns, however, that the fifth-placed vendor will have to modify its strategy if it is to sustain such strong growth rates over the next year. Second-placed Nortel also secured a dramatic rise after revenue increased 42.2% to $30.3 billion. According to Gartner Dataquest, Nortel achieved such a large increase thanks to a buoyant optical market and "through having a great balance of leading-edge technology skills." Of the remaining companies included in the survey, Motorola finished seventh, with its revenue increasing 15.3% to $22 billion, while Siemens slipped from the fifth spot in 1999 to sixth position in 2000 after its revenue jumped 14% to $22 billion. At the rear of the field, Alcatel secured eighth place after seeing revenue rise 26.6% to $21.6 billion.