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Technology Stocks : Nokia (NOK) -- Ignore unavailable to you. Want to Upgrade?

To: Eric L who wrote (20727)	6/12/2002 9:59:34 AM
From: Eric L	Respond to of 34857

re: The Motley Fool on Nokia >> Nokia's News: Not Bad The Motley Fool Take June 11, 2002 In light of somewhat conflicting information as to the state of the wireless industry, Nokia's (NYSE: NOK) mid-quarter update was eagerly anticipated today. And although the news from the world's top mobile phone maker was disappointing, it was better than most expected. Based on developments over the last couple of months, the company says second-quarter sales will decline 2%-6% from the prior year. Management's original forecast called for 2%-7% growth. Mobile phone revenue will probably see some slight growth, so the shortfall will come from sales of networking equipment, which could be down as much as 25%. Despite the negative news, Nokia says earnings per share will increase by 6%-18% over last year, which is unchanged from its previous guidance. Along with that, it predicts another increase in its industry-leading market share for mobile phones. All that was good enough for investors, who sent the stock up 10% in early trading. A look at the inventory line shows why RF Micro Devices' (Nasdaq: RFMD) outlook is bleaker than Nokia's. The latter accounts for more than 50% of the former's sales, and Nokia's inventory as a percentage of sales is still higher than historical levels -- so it will have to work through that before it once again places big orders with RF Micro Devices. Nokia's shares are still near a three-year low, however, and the company might warrant a closer look for those who feel the industry has already seen its darkest days. << - Eric -