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Author	Topic: Nortel Networks (NT)
Machiavelli	posted 03-22-2000 01:54 PM For those having trouble keeping tabs, here is a nice acquisition summary I found for the big three: Nortel Buys -- CoreTek, an optical components manufacturer for $1.43 billion in stock March 21. -- Xros, a photonics switching manufacturer for $3.25 billion in stock March 14. -- Qtera, a manufacturer of long reach optical networking systems for $3.25 billion in stock December 15. Lucent Buys -- Ignitus Communications, a manufacturer of optical components at the network edge, March 14. Terms not disclosed. -- Ortel, an optoelectric components manufacturer for $2.95 billion in stock February 7. Through the deal, Lucent gained a valuable minority interest in privately held Tellium, a well-regarded manufacturer of optical switching products. -- SpecTran, a manufacturer of specialty optical fibers and products for $64 million in cash July 15. Cisco Buys -- Pirelli Optical, the optical systems business of the Milan, Italy-based company for $2.15 billion in stock December 20. -- Internet Engineering Group, an optical networking software maker for $25 million December 17. -- Cerent Corp., a manufacturer of optical networking hardware for $6.9 billion in stock August 26. -- Monterey Networks, an optical transport networking equipment company for $500 million in stock August 26. -- StratumOne Communications, a manufacturer of semiconductor products for high speed, wide area networks for $435 million in stock June 29.
InvestorGuide Daily Administrator	posted 03-22-2000 09:32 AM March 21: Nortel Networks said it has agreed to acquire CoreTek, a maker of strategic optical components, in a stock deal valued at $1.07 billion. Nortel said the deal would advance its efforts to deliver a flexible, high-performance all-optical internet. (source: MSNBC) http://www.msnbc.com/news/384963.asp
Machiavelli	posted 03-15-2000 05:16 PM Here's some analysis on the deal. On the surface, it seems like they paid too much. But as the recognized industry leader in fiber, sometimes it's better to overspend on an infrastructure acquisition than to spend the time and money on building it yourself: "Telecommunications equipment company Nortel (NYSE: NT) plans to pony up $3.25 billion in stock to acquire Xros, a privately held start-up that makes optical switching equipment. Under terms of the deal, Brampton, Ontario-based Nortel will issue about 27.5 million shares of stock on a fully diluted basis to pick up Sunnyvale, California-based Xros (pronounced ky-ros). Shares of Nortel bobbed up more than $4 in early trading as investors trust the market-share leader to make smart moves in the optical networking space. After all, more than 75% of Internet traffic in North America is carried on Nortel systems, according to a company release, and industry research supports this claim. Of course, $3.2 billion looks like a lot of money to pay for a startup company with 90 employees. Do the math and you'll realize Nortel is paying about $36 million per employee. Imagine that. Keep in mind, however, that Nortel is using its high-priced stock to pay for the transaction. Nortel's shares are up 320% over the last year as investors realized it's the company to beat in the optical networking space. And at the rate bandwidth demand is doubling, companies like Nortel can't afford to develop needed technology on their own. Who's got the time? Better to acquire it, integrate new employees quickly, and gobble market share. It's a tough strategy to make work, but in less than a year Nortel has acquired eight companies without missing a beat. It knows how to integrate acquisitions and understands what technology it needs to build out fully optical networks."
InvestorGuide Daily Administrator	posted 03-14-2000 06:56 PM Nortel Networks, North America's No. 2 phone-equipment maker, agreed to buy Xros for $3.25 billion in stock, the latest in a flurry of acquisitions to gain fiber-optic technology. (source: CNet) http://news.cnet.com/news/0-1004-200-1571581.html
newsman	posted 03-06-2000 12:29 PM from the current Upside: "Nortel made a strong move by aggressively introducing succession networks in the first part of 1999, gaining some early mind share in the migration of voice from circuit to packet networks. Wireless has also been a big success story for Nortel, although the company has had difficulty taking advantage of its early lead on mobile IP. Other moves, including increased public marketing, new product introductions, and acquisitions such as Shasta Networks, have helped move Nortel away from its traditionally quiet legacy into the limelight of the Internet infrastructure. As optical technology becomes increasingly important, the company is very nicely positioned."
MaxPower	posted 02-04-2000 05:01 PM that should have been "I had heard people"
MaxPower	posted 02-04-2000 05:00 PM What the...? Up 20 points in two days...now I hears people predicting this kind of immediate movement, but what are the actual reasons for it? Is it a short term thing, or has it basically gapped up?
Machiavelli	posted 01-27-2000 08:49 AM As a Nortel shareholder, yesterday was a very confusing day for me. First, contrary to other sources that said differently, official earnings ARE $.55/share. The stock, amid a tech-wide stock droppage yesterday, actually fell over 8 points for the. Apparently all the good earnings news was felt during the after-hours trading. Also, BCE, who had owned a 37% stake ($50 billion) in Nortel, decided to spin those shares off to their own BCE shareholders, who will get .78 of Nortel stock for each BCE share. Trading was halted for both companies right before the announcement. Why? Isn't this great news for Nortel? Also, how does a spinoff like this work? If it's worth $50 billion to BCE, and they just give away the shares to their shareholders, this seems like a gift of $50 billion. But I'm sure it isn't, they must be getting a return on their investment somehow. Anyone know how it works?
Machiavelli	posted 01-26-2000 11:18 AM I'm confused. The Street seems to be reading their earnings as only $.44/share, $.02 higher than estimates. The only thing I found in the press release that could account for this is "Including Acquisition Related Costs (a) and one-time gains and charges, Nortel Networks recorded net earnings applicable to common shares in the fourth quarter of 1999 of US$417 million or US$0.30 per share." But that's $.30, not $.44. Granted I haven't perused the financial statements yet, but I'm still wondering where the $.44 comes from. Regardless, they did approve a 2-1 stock split.
smario	posted 01-26-2000 10:00 AM Mach, here you go: Nortel slammed earnings estimates by reporting eps from operations of $.55/share, $.12 higher than estimates, on earnings of $755 million. Revenues were up 21% to $6.99 billion from the same point last year. The reasons for the great performance is being attributed to higher revenues, gross profits, and an decrease in the effective tax rate. The press release also talks about year-long performance as well. Press Release
Machiavelli	posted 01-25-2000 10:27 AM Nortel, last I heard, is set to report today. Any whisper numbers? Are they going to beat teh $.43 estimate?
InvestorGuide Daily Administrator	posted 01-06-2000 06:39 PM An article about the deal: http://www.techweb.com/wire/finance/story/INV20000106S0004
Machiavelli	posted 01-06-2000 04:39 PM Yeah, it keeps going down. Whatever. But the good news keeps coming in: Moving in for a foothold in next generation DSL deployment, Nortel Networks Thursday said it will spend to $778 million on the acquisition of a DSL platform developer. The company has acquired U.S.-based Promatory Communications in an all-stock deal. Promatory's DSL solutions enable ordinary copper telephone wires to carry Internet traffic at speeds of up to eight megabits per second, 150 times faster than today's conventional analog modems. Nortel also expects the buy to strengthen its voice-over-DSL (VoDSL) service, allowing the company to sell various voice and Net solutions simultaneously.
smario	posted 01-06-2000 08:56 AM Mach, I think it's a great buy. But you sure picked an interesting time to get in - a quick ten point surge last week, quickly followed by a 20 point downturn. Sure it basically moved when the market did, but I don't remember when a company like this had such a huge swing in such a short time. Any other reasons for it?
Machiavelli	posted 12-27-1999 04:57 PM Thanks dude. I actually decided to take the plunge with Nortel rather than Lucent (and some Cisco for good luck). And lucky for me, I got in to take advantage of most of the ten point upswing today! Though long-term, I doubt I will even remember today...

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