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

To: George A. Roberts who wrote (972)	9/29/1998 4:28:00 PM
From: daaan	Respond to of 14638

<I wonder if the money is worth it for David House?> Yep

To: George A. Roberts who wrote (972)	9/29/1998 4:42:00 PM
From: WiseGuy	Read Replies (1) \| Respond to of 14638

Analyst Says Northern Tel Seen Missing 1998-99 Rev Forecast Why can't Nortel even give a clear straight presentation? Why introduce a new brand "Nortel Networks" with a warning? Why timed the meeting the same day as the fed, when street is completely nervous? _________________________________ By Ben Dummett TORONTO (Dow Jones)--Northern Telecom Ltd.'s (NT) stock was trading at a 52-week low when it was halted, after company executives told analysts Tuesday morning that the company would fall short of revenue expectations for 1998 and 1999. The current revenue forecasts for the company weren't immediately available. One analyst, who asked not to be identified, said Northern Telecom, a big supplier of telecommunications equipment, still aims to meet earnings forecasts. Northern Telecom is expected to earn US$1.83 a share in 1998 and US$2.30 a share for 1999, according to First Call. At the halt, Northern Telecom was down 7.40, or 12%, to 54.30 in Toronto and down 5 1/4, or 12.9%, to 35 1/2 in New York. The stock has traded 1.94 million shares in Toronto and and nearly 3.5 million shares in New York Tuesday. The sell-off in Northern Telecom Ltd.'s (NT) stock follows apparent confusion about what Northern Telecom chief financial officer Wes Scott told analysts at a New York conference Tuesday about the company's financial projections. Specifically, those attending were confused about whether Scott said the company would or wouldn't meet revenue projections for this year and 1999. "Half the room thought (the chief financial officer) was saying one thing, and the other half the room thought he was saying the other thing," said Gregory Geiling, analyst at J.P. Morgan Securities Inc. in New York. "It was just crazy," the analyst added. Geiling said Scott subsequently clarified his statements, by endorsing existing revenue and earnings projections for 1999. Scott also said revenues for the second half of 1998 will fall short of expectations, but that the company still expects to meet earnings forecasts for this year, as margins remain good. Michael Davies, an analyst at Punk Ziegel & Co., also said Northern Telecom Ltd.'s (NT) presentation was confusing. Davies said the related question-and-answer period gave those attending the impression that there was some weakening in Northern Telecom's revenue growth. Another analyst, who declined to be identified, said Northern Telecom told the participants at the presentation that the company expected to meet earnings and revenues projections for 1999. For 1998, the company said profits will be in line with forecasts, but revenue could fall short of projections, this analyst said. A survey of recent analysts' estimates shows that Northern Telecom is expected to post revenues of about US$18.5 billion in 1998. Northern Telecom's presentation in New York was much anticipated by analysts and investors, after competitor Alcatel SA (ALA) recently issued a profit warning, and Lucent Technologies Inc. (LU), another competitor, last week said it expects to hit analysts' 1998 revenue and earnings projections. Lucent' stock is currently down 3 1/16 at 74 1/2 on the New York Stock Exchange. A spokesman for Lucent told Dow Jones Tuesday the company remains confident it will hit analysts' 1998 revenue and profit targets. -By Ben Dummett; 416-943-7807; ben.dummett@dowjones.ca -By Shawn Young; 201-938-5248