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To: Sharise Brown who wrote (3997)10/3/1998 1:29:00 PM
From: Jay Rommel  Respond to of 7342
 
To: All

Telco suppliers can recover

As a greater number of companies pre-announce weaker results, investors are growing concerned that European and Asian problems will eventually reach the United States. However, contrary to the widespread belief among some industry insiders and investment experts regarding reduction in capital expenditures on telecommunications equipment, Lucent's management continues to insist that the company did not experience any slowdown in orders and that its fiscal 1998 revenue and earnings results will meet expectations.

Lucent's management is not alone in its optimistic outlook for the industry. Analysts at Warburg Dillon Read believe that "Alcatel's woes do not equal a global meltdown. [Warburg Dillon] does not believe the problems faced by Alcatel will impact most other telecom equipment companies."

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