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Technology Stocks : Alcatel (ALA) and France -- Ignore unavailable to you. Want to Upgrade?


To: larry pollock who wrote (3760)1/31/2002 11:45:21 AM
From: Ian@SI  Respond to of 3891
 
Alcatel ups 2002 forecasts

Thursday, January 31, 2002


Telecoms equipment giant Alcatel plunged into the red in 2001 for the second time in its history but its shares surged after the group unveiled a fall in debt and forecast a brighter 2002.

Alcatel, whose competitors include Ericsson and Nortel Networks, reported a 20 percent year-on-year drop in fourth quarter sales to 6.77 billion euros ($5.8-billion U.S.), above analyst forecasts but dragging it to a 368 million euro operating loss versus an 832 million profit a year earlier.

Alcatel's miserable bottom line echoes woes across the industry, as equipment makers bear the brunt of a cash crisis among carriers, but the company sent a more positive signal than many as a restructuring swept the cobwebs off its balance sheet.

CEO Serge Tchuruk told a news conference that while the current industry slowdown would continue to bite in the first quarter, knocking sales down 30 per cent from the fourth quarter, he expected business to pick up from the second quarter.

"We expect 2002 to remain challenging. The first quarter will be weak with market softness compounding the usual seasonal effect (but) income from operations should be essentially unchanged sequentially by virtue of reduced costs and the non recurrence of exceptional charges," he said.

"Even if markets remain soft, from the second quarter we see sequential growth in quarterly sales and operating income with full-year income from operations turning positive," he said.

The company also reconfirmed a prior goal to return to profit at the operating level in 2002 following a drastic restructuring to bring down its breakeven sales level.

"The results are predictably bad, but Alcatel's overall situation looks substantially better than people had thought and the net debt figure is much better than expected," said portfolio manager Paul Casson at Scottish Value Management.

"Alcatel has made promises on restructuring and it is delivering on them. It looks as if it may have turned a corner."

Equipment makers have been hit hard by the cash crisis among telecoms operators, whose heavy investment in external growth and new technology in recent years has left them with debt mountains and little to spend on new infrastructure.



To: larry pollock who wrote (3760)2/4/2002 12:58:46 PM
From: larry pollock  Read Replies (2) | Respond to of 3891
 
Motorola and Nortel Networks Team to Deliver VoIP Solutions for Broadband-Cable Market
Goal to Simplify Deployment of VoIP Networks; Speed Delivery of New Voice and Data Service
HORSHAM, Pa., and RESEARCH TRIANGLE PARK, N.C., Feb. 4

/PRNewswire-FirstCall/ -- Motorola, Inc. (NYSE: MOT - news) Broadband Communications
Sector and Nortel Networks (NYSE: NT; TSE:) have agreed to create and deliver
an integrated voice over IP (VoIP) solution for the broadband-cable market.
This non-exclusive agreement is intended to help simplify deployment of VoIP
equipment by broadband network operators worldwide and spread the delivery of
new services to their subscribers.
The agreement brings together Motorola's IP cable access network experience with Nortel Networks expertise in deployment of large, reliable networks for delivery of voice and data services. Together, the two companies intend to provide broadband network operators with a complete, integrated VoIP solution that is pre-tested and in compliance with key industry standards. The solution will also include coordinated sales and support, including network planning, design, and implementation.

``Given the early stage of deployment of VoIP equipment in the cable industry, there are substantial benefits to cable operators from agreements such as the one between Nortel Networks and Motorola'' said Tom Valovic, director, IP Telephony, with IDC. ``Integrated and interoperable solutions will help speed the deployment of new networks that can support the bundled delivery of voice, data and cable programming and thereby enable cable operators to compete head to head with traditional service providers.''

``Nortel Networks continues to focus on delivering VoIP solutions designed to reduce the operational and capital expenditures for its service provider customers,'' said Sue Spradley, president, Carrier VoIP, Nortel Networks. ``By teaming with Motorola, we believe it will ultimately be even simpler and more cost-effective for broadband-cable companies to deploy a VoIP infrastructure that can easily deliver all of today's high-quality telephone services to their subscribers, as well as a full suite of new IP-based services.''

``By providing an integrated solution from back office to switch to access network, Motorola and Nortel Networks will be the first to deliver a complete VoIP solution as a commercial product for broadband network operators,'' said Bruce Swail, vice president and general manager of Motorola Broadband's telephony business. ``As a result, operators will be able to provide end-to-end VoIP performance and reliability while minimizing deployment risks. At the same time, they will be poised to be among the first to take advantage of the opportunities surrounding emerging converged services.''

Nortel Networks and Motorola are already working together to build a VoIP network for ish, a Callahan Associates-owned company, offering voice and data services to its subscribers.

Nortel Networks VoIP portfolio includes a comprehensive suite of softswitches, gateways, and application servers that enable delivery of the complete set of today's Class 5 telephone services on a more cost-effective packet infrastructure. Nortel Networks Succession* Communication Server 2000 and Communication Server 2000-Compact will be key products for this market as they offer a rich variety of call processing features and network services that cable telephony operators need. As the products are highly scalable, cable operators can easily add new subscribers and/or new services as demand increases.

Motorola's VoIP offering includes its multimedia terminal adapter (MTA) customer premise equipment (CPE), which serves as a communications gateway to enable broadband network operators to offer bundled services to their customers. The Motorola MTA supports all standard voice service features that customers expect, such as Caller-ID, call waiting, and call forwarding, helping operators provide an easy transition from traditional telephone service. Motorola also will provide its BSR CMTS solutions, which includes carrier-class, content-aware CMTS/routers to enable the delivery of tiered data and voice services to subscribers and to support emerging converged services.

Motorola is a leading industry VoIP participant, providing broadband network operators with high-quality telephony solutions based on proven hybrid fiber coaxial (HFC) access network solutions. Motorola has deployed more than 700,000 active circuit-switched lines over HFC to date.

About Nortel Networks

Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Metro and Enterprise Networks, Wireless Networks and Optical Long Haul Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com .

About Motorola, Inc.

Motorola, Inc. (NYSE: MOT - news) is a global leader in providing integrated communications solutions and embedded electronic solutions. Sales in 2001 were $29.5 billion.

Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the severity and duration of the industry adjustment; the sufficiency of our restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; fluctuations in operating results and general industry, economic and market conditions and growth rates; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and debt ratings; the ability to make acquisitions and/or integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization in the telecommunications industry; the dependence on new product development; the uncertainties of the Internet; the impact of the credit risks of our customers and the impact of increased provision of customer financing and commitments; stock market volatility; the entrance into an increased number of supply, turnkey, and outsourcing contracts which contain delivery, installation, and performance provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; the future success of our strategic alliances; and the adverse resolution of litigation. For additional information with respect to certain of these and other factors, see the reports filed by Motorola and Nortel Networks with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Motorola and Nortel Networks disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

MOTOROLA and the stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners.

SOURCE: Motorola, Inc.