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To: John F. Dowd who wrote (22388)	9/29/1998 9:14:00 PM
From: jim bender	Respond to of 45548

Nortel, Following Other Gear Firms, Warns Results Will Miss Estimates Dow Jones Newswires Becoming the latest telecommunications-equipment maker to do so, Canadian company Northern Telecom Ltd. Tuesday warned its revenue this year will fall short of expectations. But Nortel backed earnings projections for 1998 and earnings and revenue views for 1999, clearing some confusion among befuddled investors who earlier thought the company issued warnings for both years. Around midafternoon, the New York Stock Exchange halted trading in Nortel's shares after they dropped $5.25, or 13%. After trading resumed, Nortel gained back some ground, closing the session down $4.875, or 12%, to $35.875. Nortel is listed both in New York and on the Toronto Stock Exchange. Nortel said that while revenue for the second half of this year will be shy of estimates, it expects to meet earnings targets for the year. Specific estimates from the company weren't available, but the mean estimate of analysts surveyed by First Call was for a profit of $1.83 a share for 1998, and $2.30 a share for 1999. Both figures are in U.S. dollars. Other telecom-equipment companies have issued warnings in recent weeks. But market leader Lucent Technologies Inc. has said it sees no signs of weakening demand and that it remains confident it will meet forecasts for revenue and earnings. French telecom-equipment and electronics concern Alcatel SA stunned investors earlier this month by warning that earnings this year will come in far below analysts' expectations. Motorola Inc. has been in the throes of a protracted slump, and smaller rivals Ciena Corp. and Tellabs Inc. also have issued warnings. Lucent, spun off from AT&T Corp. in 1996, said it currently has $18 billion in orders and is winning business away from competitors across the board. Other rivals include Finland's Nokia Oy and Swedish company Telefon AB L.M. Ericsson. And Cisco Systems Inc., the biggest maker of computer-networking gear, has become a competitor as the voice and data-networking industries rapidly converge. Lucent, Cisco and the other companies are racing to develop gear that can handle voice, video and data simultaneously. Lucent and Nortel are broadening their lines of data-networking products in order to help telephone companies manage the exploding streams of traffic.