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B R E A K F A S T W I T H T H E F O O L Thursday, October 19, 2000 benjamin.rogers@enron.com _________________________________________________________________ REGISTER TO BECOME A FOOL -- GET FREE STUFF! http://www.fool.com/m.asp?i=161167 _________________________________________________________________ Sponsored By: Scottrade Fools, Scottrade is the only broker with $7 trades, 120 local offices & FREE REALTIME STREAMING quotes & charts! Apply now! http://www.lnksrv.com/m.asp?i=161168 "Always forgive your enemies -- nothing annoys them so much." -- Oscar Wilde NOKIA TO THE RESCUE The leading mobile phone maker reports estimate-beating earnings and an optimistic outlook for sales of its mobile handsets. By Chris Rugaber Finnish mobile handset manufacturer and Rule Maker Nokia (NYSE: NOK) reported third-quarter earnings this morning, coming in significantly higher than analysts' expectations. The company also issued positive forecasts for next quarter and for mobile phone sales in 2001. Nokia was scheduled to report earnings next week, but apparently decided to do so earlier in response to the recent volatility in technology and telecom shares. http://www.fool.com/m.asp?i=161169 Sales rose 50% over last year's third quarter to 7.57 billion euros ($6.38 billion), while net income jumped 40% to 892 million euros ($752.22 million), or 0.19 per share. Pretax profit increased 43% to 1.34 billion euros ($1.13 billion), ahead of analysts' forecasts of 1.06 billion. Nokia's shares had declined about 40% since the company's July warning that third-quarter profit would be lower than the second quarter's, due to product delays. Today's report, and the company's optimistic outlook, reversed that trend, with shares up 18% in European trading. Mobile phone sales, which account for almost three-quarters of the company's revenues, increased 59%, while operating profits for the division were up 42% to 1.07 billion euros ($900 million). Operating margin decreased to 19.6%, from 21.9%, though the company remains far ahead of No. 2 mobile phone maker Motorola (NYSE: MOT), which recently posted a 6% operating margin for its cell phone division. Nokia introduced seven new handset models in the third quarter, and the company believes it increased its handset market share, which stood at 27.5% at the end of the second quarter. Motorola controlled 15.6% and Ericsson (Nasdaq: ERICY), which reports earnings tomorrow, held 10.3%. While other mobile phone companies, such as Motorola and Matsushita, have reduced their projections for industrywide handset sales, Nokia maintained a positive outlook. "Our view of the market development fundamentals remains unchanged, with more than 400 million mobile phones estimated to be sold in 2000," said CEO Jorma Olilla in a prepared statement. "For 2001 we expect the mobile phone market to be in the region of 550 million units." Olilla also stated that as a result of these figures, the company expects there will be 1 billion mobile phone users by 2002. Sales in the company's wireless infrastructure unit were also strong, with revenues up 34% to 1.92 billion euros and operating margins improving to 18.1% from 17.3%. Overall, the company expects "record-breaking" earnings per share (EPS) for the fourth quarter, and 25-35% sales growth in 2001. AFTER-HOURS COVERAGE TECH HEAVIES REPORT EARNINGS By The Motley Fool Staff A number of top companies reported earnings last night after the bell. Check out our after-hours coverage for news on Microsoft (Nasdaq: MSFT), Akamai (Nasdaq: AKAM), America Online (NYSE: AOL), Apple (Nasdaq: AAPL), and several other companies, many that don't begin with A. FULL STORY<< http://www.fool.com/m.asp?i=161170 _________________________________________________________________ NEWS TO GO Network switch-maker Extreme Networks (Nasdaq: EXTR) announced first-quarter fiscal 2001 earnings last night, clocking in with net income (excluding amortization costs) of $9 million, or $0.08 per share, ahead of analysts' estimates of $0.06 share, and double the year-ago figure of $4 million, or $0.04 per share. Sales were up 29% sequentially to $119.3 million, 153% higher than last year's third-quarter revenue of $47.2 million. Shares of the company fell initially in after-hours trading, but rebounded after the company increased its earnings forecasts for fiscal 2001 and 2002. Communications chip designer Broadcom (Nasdaq: BRCM) joined the earnings parade after yesterday's market close. Sales for the company's third quarter more than doubled, to $319.6 million, while earnings (excluding acquisition and other costs) jumped to $78.7 million, or $0.30 per share, from last year's $28.7 million, or $0.12 per share. Consensus analysts' estimates were for the company to earn $0.24 per share. Broadcom designs chips for cable modems, digital set-top boxes, and other high-speed networking equipment. Wireless communications software company Phone.com (Nasdaq: PHCM) also reported earnings last night, and the developer of the Wireless Application Protocol, or WAP, increased revenues 62% sequentially, to $46.5 million. The company's net loss, excluding amortization and other costs, was $10.4 million, or $0.13 per diluted share, ahead of consensus estimates for a $0.20 per share loss. Phone.com's new partner, Software.com (Nasdaq: SWCM), with which it expects to merge next month, also announced earnings. Sales reached $37.6 million, a 27% sequential increase, and earnings before acquisition and other costs were $7.4 million, or $0.13 per share, ahead of estimates of $0.03 per share. And now for some non-earnings news: According to a Bloomberg report, telecom carrier WorldCom (Nasdaq: WCOM) is planning to create a tracking stock for its consumer long-distance business. The company indicated during its July earnings conference call that it was considering several options for its slow-growing voice operation, including a tracking stock. While WorldCom did not comment on yesterday's report, final word may come when the company releases earnings on October 26. Like other long-distance carriers, WorldCom is seeking to highlight the healthy growth of its data and Internet services by separating out the stagnant consumer long-distance unit, which grew revenues by only 1% last quarter. Get yesterday's Foolish market wrap-up with a click of the mouse. http://www.fool.com/m.asp?i=161171 _________________________________________________________________ EDITOR'S PICK Two Fools argue about the merits of Dell, including whether or not there is anymore market share for it to conquer. http://www.fool.com/m.asp?i=161172 _______________________________________________________________ -News & Commentary http://www.fool.com/m.asp?i=161173 -Fool Community http://www.fool.com/m.asp?i=161174 -Post of the Day http://www.fool.com/m.asp?i=161175 -Latest Fribble http://www.fool.com/m.asp?i=161176 -Latest Market Numbers http://www.fool.com/m.asp?i=161177 ____________________________________________________________ My Portfolio: http://www.fool.com/m.asp?i=161178 My Discussion Boards: http://www.fool.com/m.asp?i=161179 My Fool: http://www.fool.com/m.asp?i=161180 Fool.com Home: http://www.fool.com/m.asp?i=161181 My E-Mail Settings: http://www.fool.com/m.asp?i=161182 Sponsored By: Scottrade Fools, Scottrade is the only broker with $7 trades, 120 local offices & FREE REALTIME STREAMING quotes & charts! Apply now! http://www.lnksrv.com/m.asp?i=161183 WIRELESS 201: FREE PREVIEW Get a sneak peek at this report on Soapbox.com http://www.lnksrv.com/m.asp?i=161184 BECOME A FOOL! Get a FREE Investing Guide and more... http://www.fool.com/m.asp?i=161185 FOOL DIRECT E-MAIL SERVICES Need to change your address or unsubscribe? You can also temporarily suspend mail delivery. Click here: http://www.fool.com/community/freemail/freemaillogin.asp?email=benjamin.rogers @enron.com< Have ideas about how we can improve the Fool Direct or new e-mail products you'd like to see? Try our discussion board: http://www.fool.com/m.asp?i=161186 ____________________________________________________ © Copyright 2000, The Motley Fool. All rights reserved. This material is for personal use only. Republication and redissemination, including posting to news groups, is expressly prohibited without the prior written consent of The Motley Fool. . MsgId: msg-3549-B10192241Address.msg-09:19:02(10-19-2000) X-Version: mailer-sender-master,v 1.84 X-Version: mailer-sender-daemon,v 1.84 Message-Recipient: benjamin.rogers@enron.com
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