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 : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: Peppe who wrote (10761)	4/12/1999 8:43:00 PM
From: pat mudge	Read Replies (3) \| Respond to of 18016

Peppe -- I don't know Fore's products. I only know they're not considered a competitor. I wish them well and hope this isn't a benevolent project where vendors are encouraged to cough up part of the costs. As for the weakness in the networking sector late in the day, this may have been the cause: <<< April 12, 1999 18:13 Lucent drops amid concerns over revenue growth NEW YORK, April 12 (Reuters) - Shares of Lucent Technologies Inc., the world's largest telecommunications equipment maker, fell nearly 6 percent on Monday amid concerns that its revenue growth may fall short of forecasts, analysts said. Lucent, the second most widely-held U.S. stock behind its former parent AT&T Corp. , dropped $3.69 to $59.94 in heavy trading on the New York Stock Exchange. Lucent hit an intraday low of $58.75. SoundView Technology Group analyst Truc Do earlier downgraded his rating on Lucent to hold from buy, saying Lucent may not achieve the 20 percent revenue growth goal it set for fiscal 1999. Do said he expected Lucent to see 1999 revenue growth in the mid-teens instead. Do trimmed his 1999 earnings estimate to $1.15 a share from $1.16 a share and cut the 2000 estimate to $1.35 a share from $1.40. Analysts said the SoundView downgrade spooked some investors, who may have decided to sell shares of Lucent, which have gained 30 percent over the past two weeks, until concerns about the revenue growth eased. Lucent is expected for report its results for the second fiscal quarter ended March 31 on April 22. The New York Times reported on Sunday that mutual fund manager Robert Olstein of Olstein Financial Alert questioned the quality of Lucent's earnings. Olstein said much of its profit growth came from favorable accounting practices. Lucent has beaten Wall Street's earnings forecasts every quarter since it was spun off from AT&T in 1996. In the first fiscal quarter ended Dec. 30, however, a delay in finalizing some contracts damped Lucent's revenue growth. Merrill Lynch, however, said it remained optimistic about Lucent's prospects. Merrill Lynch analyst Michael Ching said in a research report that he expected Lucent's revenues to increase by 30 percent to $8.0 billion in the second fiscal quarter and by about 19 percent in both fiscal 1999 and 2000. Lucent's results should be driven, in part, by sales of high-margin products such as optical and wireless products, Ching said in the report. Ching also said he expected AT&T to announce contract for Phase II of its fiber optic ring construction and Lucent should "receive a meaningful piece of this contract." Separately, Lucent said it received antitrust clearance from the U.S. Department of Justice for its proposed $20 billion acquisition of Ascend Communications Inc.