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

To: mauser96 who wrote (5695)	1/21/1999 11:26:00 AM
From: Mark Duper	Read Replies (1) \| Respond to of 21876

If revenues were great, bears would say that profit margins sucked. There's always something that the shorts misconstrue to their advantage. Lucius, not directed at you. Sup.

To: mauser96 who wrote (5695)	1/21/1999 11:32:00 AM
From: William Hunt	Read Replies (1) \| Respond to of 21876

Lucius---Hope this helps explains the revenue issue ---Lucent Technologies Inc. Dow Jones Newswires -- January 21, 1999 Lucent 1Q Earnings Beat Views, But Delays Nick Rev Growth By Shawn Young NEW YORK (Dow Jones)--Lucent Technologies Inc. (LU) turned in another in an unbroken string of quarterly earnings reports that beat expectations, but first fiscal quarter revenue growth was hurt by delays that will push more than $800 million onto the second-quarter books. The Murray Hill, N.J., telecommunications equipment maker's revenue grew 6% to $9.2 billion from $8.7 billion a year ago as the company's accounting policies barred it from adding some orders to the quarter's top line. However, the company said demand remains intense. Lucent said it has booked more than $1 billion in revenue so far this month and it expects revenue growth of 30% in the second fiscal quarter. It forecasts revenue growth of 19% to 20% for the fiscal year and earnings growth of about 35%. "Revenue growth was extremely disappointing based on some revenue recognition issues," said J.P. Morgan Securities Inc. analyst Gregory Geiling. "That said, their outlook is extremely positive." However temporary or bureaucratic it may be, the revenue letdown is the first disappointment many investors have experienced from the former equipment-making unit of AT&T Corp. (T), and the stock reflected that Thursday. The company's NYSE-listed shares were down 6 7/16, or 5.6%, recently to 109 1/16 in brisk trading. Geiling characterized the dip as a "buying opportunity." BEST WISHES BILL PS. That would have brought it up to a 14 % increase in revenues .

To: mauser96 who wrote (5695)	1/21/1999 2:25:00 PM
From: Doug	Read Replies (2) \| Respond to of 21876

L.M.L: I fully concur with your observations. I did a little post take over maths which highlights that finding. LU: Shares 1320m ; Rev/q= $9204m ; Income=$1414m ASND: Shares 305m ; Rev/q=$475m ; Income=$69.8m New LU: Shares 1625m; Rev/q=$9675m; Income=$1484m Prorata based on existing performance w/o any growth. New LU: Shares 1625m ; Rev 11331m ; Income=$1741m You will see that if you allow for 15% growth there is a large shortfall in revenue and earnings for the new Company. After a Merger there is always a period of digestion when the synergies of cost savings have to be proven. Such synergies must come from reengineering to eliminate any duplication. A large number of jobs will be lost & their cost borne as restructuring expenses. Small Investors may be wise to watch from the sidelines till the restructuring announcements are made and digested by the street.