Communications: Equipment and Services Presented By Team #9

Firms CIENA Corporation Lucent Technologies Inc. AT&T Corporation Nokia Corporation

CIENA Corporation Background Information CIENA Corporation designs, manufactures and sells open architecture, DWDM systems for fiberoptic communications networks, optical networking solutions and access systems

Further Background Information Sector: Technology Industry: Communications Equipment Market Cap(Mil)$ : 32, Employees: 2,775

Key Ratios Dividend Information Yield %=0.00 Annual Dividend=0.00 Payout Ratio=0.00 Financial Strength Quick Ratio=2.81 Current Ratio=4.69 Total Debt/Equity=0.00

More Key Ratios Management Effectiveness Return on Equity=12.72 Return on Investment=11.93 Return on Assets=10.06 Financial Leverage- ROE>ROA –favorable Per share data earnings=0.27$ Profitability Gross Margin%=44.41 Operating Margin%=12.56 Profit Margin%=9.48

Strengths -Profitability Compared with Industry Company Gross Margin =44.41 Operating Margin= Profit Margin=9.48 Industry Gross Margin=46.83 Operating Margin= 1.89 Profit Margin=-0.68

Lucent Technologies,Inc. LU designs, develops, manufactures and services systems and software Enables network operators and other service providers to provide wireline and wireless access, local, long distance and int’l voice, data and video services and cable service

Background Information Sector: Technology Industry: Communications Employees: 153,000 Market Cap(Mil)$: 51,555.36

Key Ratios Dividend Information Yield %=.52 Annual Dividend=0.08 Payout Ratio%=13.16 Financial Strength Quick Ratio=1.32 Current Ratio= 2.51 Total/Debt Equity=.20

More Ratios Management Effectiveness Return on Equity=10.53 Return on Assets=4.84 Return on Investments=6.27 Financial Leverage- ROE>ROA-favorable Profitability Gross Margin %=44.32 Operating Margin %=11.62 Profit Marin%=5.62 Per share data earnings=0.59

Compared to Industry Company Profitability Gross Margin%=44.32-Industry Operating Margin%=11.62-Industry 1.89 Profit Margin%=5.62-Industry –0.68

AT&T Corporation Provides voice,data and video telecommunications services, including cellular telephone and internet services, to businesses, consumers and government agencies Provides cable TV to 11 million customers

Background Information Sector:Services Industry: Communications Services Employees: 147,800 Market Cap(Mil)$: 75,304.66

Key Ratios Dividend Information Yield%=4.39 Annual Dividend%=0.88 Payout Ratio%=49.00 Financial Information Quick Ratio=0.23 Current Ratio=0.30 Total Debt/Equity=0.56 Sales$19.50

More Key Ratios Management Effectiveness Return on Equity= 6.55 Return on Assets= 3.87 Return on Investment= 4.69 Financial leverage- ROE>ROA-Favorable Profitability Gross Margin%=53.43 Operating Margin%=16.94 Profit Margin%=11.85 Per Share Data Earnings=$1.77

Compare with Industry Profitability Gross Margin%=44.32, Industry Operating Margin% =16.94, Industry1.89 Profit Margin%=11.85, Industry –0.68

Nokia Corporation A supplier of telecommunications systems and equipment Core businesses include the development, manufacture, and delivery of operator-driven infrastructure solutions and end-user- driven mobile phones

Background Information Sector: Technology Industry: Communications Equipment Market Cap(Mil)$: 235, Employees: 60,166

Key Ratios Dividend Information Yield%=1.52 Annual Dividend%= 0.77 Payout Ratio%= 0.00 Financial Strength Quick Ratio=1.20 Current Ratio=1.51 Total Debt/Equity=0.13 Per share data earnings$=0.66

More Key Ratios Management Effectiveness Return on Equity=48.21 Return on Assets= Return on Investment=46.18 Financial leverage- ROE>ROA-favorable Profitability Gross Profit%=38.50 Operating Margin%=20.01 Profit Margin%=13.42

Compared to Industry Profitability Gross margin%=38.50, Industry=46.83 Operating Margin%=20.01, Industry=1.89 Profit Margin%=13.42, Industry=-.68

Comparison Between Companies

Financial Strength/Management Effectiveness Comparison A:\ratios companies.xls A:\ratios companies.xls FirmQuick Ratio Curren t Ratio Return on Equity % Return on Assets % Return on Invest ment% CIEN LU T NOK

Profitability AT&T seems to have the highest gross margin% Nokia seems to have the highest profit margin- return on sales de.com/

Ending Comparisons Long term Debt/Equity 0.00=CIENA-0.56 most AT&T=.56 Earnings per share$=.66 for Nokia, CIENA=.27, AT&T=1.77, Lucent=.59 Companies are competitors and reflect weaknesses and strengths Overall, Nokia is doing the best

Sources