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To: Softechie who wrote (1506)	7/20/2001 8:33:07 AM
From: Softechie	Respond to of 2155

Marconi tests new lows after Nortel results -------------------------------------------------------------------------------- LONDON, July 20 (Reuters) - Shares in British telecoms equipment maker Marconi sank to fresh lows on Friday after rival Nortel Networks Corp reported overnight a stinging second-quarter loss and a plunge in sales. Energis and Spirent also fell on the news as did second liners, fibre optics components maker Bookham Technology and chip designer Parthus Technology . U.S. giant Nortel reported that its optical components division saw a 78 percent decrease in second-quarter sales on a year ago, with intercity optical sales experiencing the brunt of the decline. "These sales numbers say it all. It is not very bullish for Marconi," said one UK technology analyst who has a 55 pence share price target on the stock. Nortel's Chief Executive John Roth said that visibility remained clouded, following similar comments made earlier in the day by European bellwether Nokia , which displeased investors in the London market. The glum mood was intensified by comments from Swedish telecoms equipment maker Ericsson on Friday. The company said in reporting a second-quarter loss in line with expectations that market uncertainty had worsened and made a forecast for the full year impossible. Marconi's share price fall extended this week's journey into the red, having already flopped 50 percent this month after a profits warning. By 1027 GMT the stock was trading at 93-1/2 pence down 4.1 percent having briefly hit the 92 pence level. Parthus was also stung by a downgrade from UBS Warburg pushing it down nearly eight percent to 52p. Marconi's decline was helped along by worries over delays in the roll-out of third-generation (3G) Internet-enabled cellphone services. Earlier Vodafone said the rollout of 3G could slip to 2003 due to a potential shortage of handsets. REUTERS Rtr 06:46 07-20-01