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

To: RavBruce who wrote (2812)	6/10/1998 5:34:00 PM
From: ALTERN8	Respond to of 21876

WINS $200 MM RBOC CONTRACT & ACQUIRES EURO CALL CENTER CO. -- Research Notes Subject: Lucent Technologies (LU--$73 1/16)--NYSE Opinion: BUY ============= =============================================================================== Date: June 10, 1998 ------------------------------------------------------------------------------- Market Profile 52-Week Range $79-$31 \| EPS Growth Rate (3-5 Yrs.) 25% Avg. Daily Volume 4,662 M \| ROAE (LTM) 16% Shares Outstanding 1304.0 MM \| Debt to Total Capital 44% Market Capitalization $95,274 MM \| Book Value Per Share $3.58 Floating Market Cap. $84,793 MM \| Indicated Dividend/Yield $0.16/0.22% Institutional Owner. 41% \| Revenue (LTM) $28,154 MM Insider Holdings 11% \| _______________________________________________________________________________ Earnings/Share Fiscal Fiscal 1Q/Dec 2Q/Mar 3Q/Jun 4Q/Sep Year P/E Ratio ------ ------ ------ ------ ------ --------- 1997 $0.67 $0.05 $0.17 $0.28 $1.17 62.5 1998E 0.87A 0.14A 0.23 0.38 1.62 45.1 1999E - - - - 2.00 36.5 ------------------------------------------------------------------------------- Highlights: - Lucent won a $200 million contract from Bell Atlantic. - Shipment starts next month for ATM/SONET equipment and software. - Lucent will acquire SDX, a European co., for call center solutions. - The SDX acquisition should close in 4Q98, no EPS dilution. - Stay tuned for SuperComm new product announcements, today or tomorrow. - Our price target remains $90 on an attractive big cap growth stock. ------------------------------------------------------------------------------- REASONS FOR NOTE: News supporting Lucent's success with carriers and an acquisition that gives Lucent a toehold into European enterprise market. BELL ATLANTIC SONET/ATM CONTRACT. Lucent has been selected by Bell Atlantic to provide equipment for a next generation, data packet-switched long distance network which will begin construction in July 1998. The contract is a $200 million, 5 year contract to supply SONET/WDM Transport equipment, 5ESS digital voice switch, and software support systems to manage the different elements of the network. The network is intended to support functions such as Virtual Private Networking, audio/video streaming over the Internet, electronic commerce and video conferencing. There are more contract awards coming from Bell Atlantic for the ATM portion and the Internet Protocol Packet Router for the network. Bell Atlantic did not disclose which vendors it is considering for these elements. Lucent's Globeview 2000 product is a next generation ATM backbone switching system. Bell Atlantic disclosed that it will be spending $100 million annually on this network over the next five years. The project timeline issued by the company indicates a 1Q99 deployment of service for the ATM/SONET network, expansion of service in 2Q99 and the addition of voice and data enhancements in 3Q98. SDX ACQUISITION. Yesterday, Lucent announced a $200 million acquisition of a UK based SDX Business Systems, a provider of call centers and business systems in Western Europe. Calling Centers are a key source for growth in voice networking for the enterprise market, growing at an estimated rate of 30% annually. Lucent is becoming a leader for calling centers in Europe to mirror its success in US. SDX provides voice and data switching solutions for small and medium-sized businesses. SDX's core product, INDeX, provides basic telephony solutions (key systems, PBXs and wireless telephony) and combines them with high-end applications (call centers, voice messaging, CTI and data switching). SDX also markets a line of leading-edge router-based PBXs for homes and small businesses with voice and data capabilities on one system. The SDX acquisition will add to Lucent's existing indirect distribution channels in Europe; about 70 percent of business communications systems sales in Europe are done through indirect channels. SDX had sales of $75 million but a high growth rate. Lucent will take a one-time charge for in-process R&D in 4Q98; the acquisition is expected to be neutral to earnings in the first year. We estimate Lucent BCS revenues to be 26.7% of total sales in 1998.INVESTMENT THESIS: We believe Lucent shares will appreciate to match its attractive earnings outlook. We have a bullish two-year earnings forecast. Earnings in 1998-1999 should grow in the mid-20% range, which would exceed the growth rates of most of Lucent's peer group. So far, management has exceeded investor expectations, but the bar continues to be raised in terms of strategic and financial expectations. This quarter again there are many earnings disappointments in the telecommunications equipment sector. And yet, Lucent's track record remains strong but carefully watched by the market with the stock trading at record levels. We remain bullish. Company Description: Lucent is a pure play and an industry leader in telecom-munications equipment products and services. On April 4, 1996, it became the largest initial public offering in American history, with shares totaling $3 billion. Lucent became fully independent from AT&T on October 1, 1996. Thus, it became a new company with a clean page to set higher goals and to nurture a stronger culture for employees in servicing its customers. So far, Lucent has exceeded investor expectations, and the bar continues to be raised in terms of strategic and financial expectations. ===============================================================================

To: RavBruce who wrote (2812)	6/11/1998 1:15:00 PM
From: IngotWeTrust	Read Replies (1) \| Respond to of 21876

What a jerk response. Of course it was LU related; t'guy asked on a LU thread! Obviously LU is one he follows. And if you haven't tried charting where LU is concerned, you might tear yourself away from the Legalistic hairsplitting Rabbinical debate-your-opponent-until-one-of-you-is-hoarse Studies, and take up a profitable pursuit of more knowledge! Sheesh...what a walking billboard UR4 Ur future congregation!