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One of the reasons Lucent's cash flow is down is due to the purchasing of data communications companies. They are in the process of trying to build up the Data Networking Systems (DNS) division. Up until the recent any purchases made had to be completed with cash only and not any stock. They have purchased a couple of companies that had best of class products in their market space. Prominet brought the first Layer 2 and Layer 3 switch to the market first prior to Cisco or Bay/Nortel. The purchase of Lannet out of Israel brings the strongest ATM core switch to the market. The Quadratek purchase brought the best the DHCP and DNS Fortune 500 software IP management to Lucent. I do agree that carrying the long term debt is not a good idea. I justed wanted to provide my insight why I think the cash flow has decreased during that time.
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