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.

Strategies & Market Trends : Making Money is Main Objective -- Ignore unavailable to you. Want to Upgrade?

To: Softechie who wrote (1128)	4/19/2001 12:03:52 AM
From: Softechie	Respond to of 2155

DJ Wireless Device Niche Shrugs Off Winstar Bankruptcy 18 Apr 17:28 By Pat Maio Of DOW JONES NEWSWIRES LOS ANGELES (Dow Jones)--Despite Winstar Communications Inc. (WCII) blaming Lucent Technologies Inc. (LU) for its Wednesday filing for bankruptcy protection, three specialized wireless device companies with ties to Lucent's fortunes saw their shares surge in trading. Shares of Datum Inc. (DATM) rose 6.6%, Symmetricom Inc.'s (SYMM) increased 5.56%, and Frequency Electronics Inc. (FEI) rose 7.5%. Analysts said the three firms are vying for work in a small niche of Lucent's recent $5 billion contract from Verizon Wireless to build an improved mobile phone network, called 3G, or third generation. The three firms build products that synchronize wireless phone systems, landline systems and other time and frequency devices for satellites, electric utility operations, and other systems. "The Winstar bankruptcy is not irrelevant, but I'm not going to lose sleep over this," said Matt Desmond, analyst with Red Chip Review in Portland, Ore. Winstar said Wednesday that it filed for bankruptcy protection because struggling Lucent had violated a vendor financing agreement. Jeffrey Van Sinderen, analyst with B. Riley & Co. in Santa Monica, Calif., sees the Verizon Wireless contract mostly benefiting Datum. "As we look into the third and fourth quarter of this year, we think Datum will benefit," Sinderen said. "I anticipate the buildout of the 3G system will be gradual. It won't be a huge amount of business in the third quarter, but by the fourth it'll be significant." Van Sinderen sees Datum and another rival equipment maker probably splitting whatever contract is awarded to them to build timing and frequency devices for the Verizon Wireless phone system. "Given that Datum is the largest supplier of timing equipment to Lucent, our thinking is that they'd get a considerable portion of the contract," he said. Lucent was 25.6% of Datum's business in its fourth quarter of 2000, according to a spokesman for Datum of Irvine, Calif. Last week, Datum indicated the company's first-quarter earnings would be in line with its previous guidance of 25 cents to 30 cents a share, with revenue of about $33 million. Spokespeople with Frequency Electronics and Symmetricom were not available for comment. In late March, Verizon Wireless agreed to pay Lucent $5 billion to upgrade its wireless network so that Verizon customers could reach the Internet through their mobile phones, hand-held devices and notebook computers almost 10 times faster than current equipment. The 3G technology will be available by the end of the year. Verizon Wireless is the largest wireless communications provider in the U.S. with 27.5 million wireless voice and data customers. -By Pat Maio, Dow Jones Newswires; 323-658-3776; patrick.maio@dowjones.com (END) DOW JONES NEWS 04-18-01 05:28 PM