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.

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

To: William Hunt who wrote (2764)	6/7/1998 5:31:00 PM
From: Dolfan	Read Replies (2) \| Respond to of 21876

Don't forget Companies like Lucent also like to buy these high tech companies for the engineering talent. When taking this as a factor Lucent got a good deal. Personally, as being a Bay/Lucent customer I would like to see Lucent get Bay Networks before NT. Most Lucent customers have the Definity PBX systems. Also, at least in South Florida most Lucent customers use Bay equipment. Could you imagine the advantage NT would have if they purchased Bay Networks. They may actually wins some business on the PBX side. Most companies are going to a one vendor data/voice integrator. JMHO Regards, Mark

To: William Hunt who wrote (2764)	6/7/1998 10:53:00 PM
From: freeus	Read Replies (1) \| Respond to of 21876

Here is the bit from Individual Investor (June issue, p. 14) "Sometimes , net income is not the bottom line. Earnings from continuing operations exclude onetime charges and costs, the idea being to ignore onetime events in order to make meaningful comparisons with past and future results. In Lucent Technologies' second quarter, for example, the company booked $6.16 billion in revenue and incurred costs of $6.13 billion. Lucent was left with $23million in net income, or $.02 a share (assuming 1.3 billion shares outstanding) a decline from $.05 a year ago. But in January Lucent had acquired a networking company called Prominet, and assigned a value of $1.57 million to the company's "in-process" research and development. So Lucent subtracted that from its own R&D expenses, and boldly announced earnings of $180 mllion, or $.14 a share-a gain of more than 100%. Investors gobbled it up. Such nonrecurring entries come in many stripes, but they arent always taken well by the Street. Throughout the 1990's, Digital Equipment repeatedly took charges to pay for being too optimistic. It spent millions developing new technologies, and counted that money as an asset on its balance sheet. When those technologies didn't bear fruit, as expected, Digital was able to wipe the loss out of charging it against earnings. Investors, however, lost all faith in management and punished the stock. Any comments? (this was an answer to a letter about earnings, not an article about Lucent) Best wishes and happy Monday bull market tomorrow. Freeus