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

To: Anthony Wong who wrote (4394)	9/30/1998 1:23:00 PM
From: Jack Kunkle	Read Replies (1) \| Respond to of 21876

Interesting statement: Lucent, spun off from AT&T Corp. in 1996, said it currently has $18 billion ...... Headline: (UPDATE) Investors Still Concerned About Outlook For Telecom-Equipment Makers NEW YORK -(Dow Jones)- Northern Telecom Ltd.'s revenue warning Tuesday carried over into the stock market Wednesday, with investors unloading shares of telecommunications-equipment makers amid concerns about the overall outlook for the industry. NorTel (NT), whose shares dropped 12% Tuesday, fell another $5, or 14%, to $30.875 on volume of 7.7 million around midday. Tellabs Inc. (TLAB), whose merger with Ciena Corp. went down the tubes, dropped $5.375, or 12%, while shares of Ciena (CIEN), Alcatel SA (ALA) and Nokia Oy (NOKA) also drew selling. Even Lucent Technologies Inc., which has seen no signs of weakening demand, watched its stock drop $5.125, or 6.8%, to $69.375 in active trading. Tuesday, Canada's NorTel said its revenue this year will fall short of expectations, although it 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. Wednesday, brokerage firms Lehman Brothers Inc., HSBC Securities and Warburg Dillon lowered their investment ratings on NorTel's stock to neutral stances, but lesser-known firm Edward Jones upgraded its stance to "buy" from "hold." Other telecom-equipment companies have issued warnings in recent weeks. But market leader Lucent 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. (MOT) has been in the throes of a protracted slump, and smaller rivals Ciena and Tellabs 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 (NOKA) and Swedish company Telefon AB L.M. Ericsson (ERICY). 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 (CSCO) 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. Copyright © 1998 Dow Jones & Company, Inc. All Rights Reserved.