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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: Bosco who wrote (963)	9/29/1998 4:04:00 PM
From: Sandy	Respond to of 14638

S&P reiterates buy at 3:27. eom

To: Bosco who wrote (963)	9/29/1998 4:04:00 PM
From: Anthony Wong	Read Replies (1) \| Respond to of 14638

Bloomberg - Northern Telecom Warns 2nd-Half Revenue Won't Meet Expectations Bloomberg News September 29, 1998, 3:22 p.m. ET Northern Telecom Warns 2nd-Half Revenue Won't Meet Expectations Brampton, Ontario, Sept. 29 (Bloomberg) -- Northern Telecom Ltd. told analysts revenue growth in the second half 1998 won't meet estimates, primarily because of weaker-than-expected demand in Europe and Asia, analysts said. The No. 2 seller of phone equipment in North America still expects to meet profit estimates, helped by cost cuts, analysts who attended a meeting with the company in New York said. Northern Telecom is expected to earn 38 cents a diluted share in the third quarter, 76 cents in the fourth quarter and $1.83 in the full year, according to analysts polled by First Call Corp. The company is seeing slower demand in Asia for its products and has lost some wireless contracts in Europe to rivals, analysts said. Northern Telecom spokesman Peter Janacek declined to comment, saying the company plans to make a statement within an hour. ''They are not going to meet the rate of revenue growth in the second half that they formerly expected,'' said Charles DiSanza, an analyst at Gerard Klauer Mattison, who has a ''buy'' rating on the stock. Trading in Northern Telecom shares was halted in early afternoon at 35 1/2, down 5 1/4. The news dragged down shares of other phone equipment makers. Lucent Technologies Inc. shares dropped 2 1/4 to 75 1/4 in late trading, while Ericsson AB American depositary receipts fell 3/4 to 19 1/4 and Motorola Inc. fell 5/16 to 44 3/16. Before the meeting, Northern Telecom Chief Executive John Roth said the company expects its recent acquisition of Bay Networks Inc. to help it gain market share and exceed the industry's annual sales-growth rate of 14 percent. --Andrew Brooks in the Princeton newsroom (609) 279-4066 /bab