Zacks.com Features the Following Top Stocks in the Telecom Equipment Industry: Polycom, Scientific-Atlanta, QUALCOMM, Lucent Technologies, and Motorola

Business Wire, August 30, 2004

CHICAGO -- Renewed interest in cell phones has helped to upgrade the telecom equipment industry, and the All Stars have five recommendations to connect you with this enterprising space. Here are some of the top recommendations in the telecom equipment industry: Polycom, Inc. (NASDAQ:PLCM), Scientific-Atlanta, Inc. (NYSE:SFA), QUALCOMM, Inc. (NASDAQ:QCOM), Lucent Technologies (NYSE:LU) and Motorola, Inc. (NYSE:MOT). Discover the full story at Zacks.com http://at.zacks.com/?id=96

What Do The All Stars Recommend:

Polycom, Inc. (NASDAQ:PLCM) is the world's technology leader of high-quality, easy-to-use video, voice, data and web conferencing and collaboration solutions. In late July, Polycom reported a strong second quarter performance, as pro forma net income of $0.17 per diluted share more than doubled the year-ago total of $0.08. The consensus was at $0.16, which marked a positive earnings surprise of more than 6% for Polycom. Consolidated net revenues reached $133.8 million vs. $99.4 million last year. Video communications accounted for 53% of the revenue, while network systems made up 27% and the burgeoning voice communications segment comprised 20%. Earlier this month, Polycom's Board of Directors approved a share repurchase program for up to 10 million shares of its common stock.

Scientific-Atlanta, Inc. (NYSE:SFA) is a leading supplier of digital content distribution systems, transmission networks for broadband access to the home, digital interactive set-tops and subscriber systems designed for video, high-speed Internet and voice over IP (VoIP) networks, and worldwide customer service and support. Scientific-Atlanta is near the ground floor of the rapidly-growing digital video recorder (DVR) market. The company sold 383,000 DVRs in its fiscal fourth quarter, which marked a rise of 143% from last year. Such strong results aided in the company's results for the quarter. Excluding an item, Scientific-Atlanta reported fiscal fourth quarter earnings of 35 cents a share, matching the consensus. In the year-ago quarter, the company posted 31 cents. Sales improved 14% to $458.8 million. Bookings improved $81.3 million, or 18%, to reach $540.4 million, compared to $92.4 million last year. Bookings for subscriber products advanced 26% to $410.2 million, thanks in large part to orders for its Explorer(R) 8000(TM) DVR products and high-definition set-tops.

QUALCOMM, Inc. (NASDAQ:QCOM) is a leader in developing and delivering innovative digital wireless communications products and services based on the company's CDMA digital technology. The CDMA market continues to grow and QUALCOMM is in a great position to benefit. Fiscal third quarter earnings per share topped the consensus and year-ago result while revenues surged 50% to $1.3 billion. On a sequential basis, revenues rose 10%. QUALCOMM stated that record demand for its chipsets and stronger than expected WCDMA sales are driving revenues and earnings higher. Due to its encouraging business outlook, QUALCOMM decided to increase its guidance for fiscal 2004.

Lucent Technologies (NYSE:LU) designs and delivers the systems, services and software that drive next-generation communications networks. The company uses its strengths in mobility, optical, software, data and voice networking technologies, as well as services, to create new revenue-generating opportunities for its customers, while enabling them to quickly deploy and better manage their networks. Excluding one-time gains and losses, Lucent Technologies reported fiscal third quarter earnings of 4 cents per share, which was 2 cents, or as much as 100%, better than the consensus. Revenues reached $2.19 billion, which was up 11% from last year's $1.96 billion. The company announced 35 customer wins and trials during the quarter, and said it is seeing more significant, multi-year plans being developed for next-generation networks.

Motorola, Inc. (NYSE:MOT) is a global leader in wireless, broadband and automotive communications technologies that help make life smarter, safer, simpler, synchronized and fun. Motorola's improving product portfolio helped the company in its second quarter, as earnings per share of 21 cents, excluding items, exceeded the consensus by more than 23%. Sales of $8.7 billion jumped by 41% from last year's $6.2 billion. The company said market share improvement continued in several areas. However, the most promising factor for Motorola and its shareholders is that the company expects more of the same moving forward. Motorola expects to continue generating strong sales growth in the latter half as it launches about 20 new models in that approximately 6-month timeframe.

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