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

To: alruss who wrote (4757)	10/22/1998 9:09:00 AM
From: John Curtis	Read Replies (1) \| Respond to of 21876

LU at ~$80 US in European trading. Bodes well for today. (eom).

To: alruss who wrote (4757)	10/22/1998 1:05:00 PM
From: Wigglesworth	Read Replies (1) \| Respond to of 21876

WSJ: Lucent's Strong Net Indicates Gains In Market Share From Gear Rivals An INTERACTIVE JOURNAL News Roundup Lucent Technologies Inc. posted a 48% jump in fiscal fourth-quarter earnings, defying an industrywide slowdown that has hurt its rivals. Lucent's earnings for the quarter outstripped Wall Street's expectations and proved, analysts said, that the telecommunications-equipment company is taking market share from competitors. Company Profile: Lucent * * * Lucent Ends Joint Venture With Philips Separately, Lucent agreed to provide $2 billion in financing for telecommunications upstart WinStar Communications Inc. In midday trading, shares of Lucent were down 50 cents to $78.50 on the New York Stock Exchange, while WinStar shares were up $5.375 to $24.9375 on the Nasdaq Stock Market. Lucent, Murray Hill, N.J., posted net income of $388 million, or 29 cents a diluted share, for the period ended Sept. 30. However, that included a charge of $160 million for in-process research and development related to the acquisitions of SDX, MassMedia, Lannet and JDA. Excluding the charges, net income would have been $548 million, or 41 cents a diluted share, two cents above the mean estimate of analysts surveyed by First Call. In the year-earlier quarter, Lucent posted a net loss of $597 million, or 47 cents a diluted share. That included charges of $966 million related to the acquisition of Octel. Excluding the charges, year-ago net income would have been $369 million, or 28 cents a diluted share. Revenue in the latest quarter jumped 16% to $8.04 billion from $6.93 billion a year ago. Financing WinStar Network Also Thursday, Lucent said it will provide as much as $2 billion in equipment financing to fund the buildout of WinStar's fixed-wireless broadband network, which can carry large amounts of voice and data traffic. "The fact that Lucent is willing to commit $2 billion validates WinStar's point-to-multipoint technology," said Dean Kartsonas, telecom investment analyst at Federated Investors. And with the equity and high-yield markets in flux, the agreement fills a hole in Winstar's capital needs. WinStar, which was already fully funded to complete its 40-market buildout by the end of 1999, said the deal gives it additional resources which will allow it to complete the national deployment of its network ahead of schedule. International Revenue Surges Lucent said international revenue rose 41% in the fourth quarter, while the microelectronics unit's had revenue growth of 10% despite declines in the world semiconductor market. The company said fourth-quarter revenue for microelectronics products rose 4% to $811 million on sales of chips for communications and computing. Within the U.S., revenue for microelectronics products fell about 4%, but international revenue rose about 12% from a year ago. Lucent attributed fourth-quarter operating income gains to revenue growth, higher gross margins and a decrease in the effective tax rate to 36%. Lucent's fourth-quarter revenue for systems for network operators rose 22% to $4.75 billion, driven by sales of switching and wireless systems with associated software, optical networking systems, communications software and data networking systems for service providers. U.S. revenue rose 14%, while international revenue rose about 49%. The business communications systems unit's revenue rose 35% to $2.44 billion on sales of Definity enterprise communications servers. Revenue in the U.S. rose 30%, while those outside the U.S. rose about 57%. "Both of these are indications they've gained market share," said Credit Suisse First Boston analyst James Parmelee.