Lehman Brothers

lowered its 2001 earnings-per-share estimates for

Nortel Networks

(NT)

Monday to 47 cents a share from 72 cents, and its 2002 earnings estimate to 74 cents a share from $1.05.

Analyst Tim Luke's estimates are 17 cents below the Wall Street consensus. He also moved his price target to $21 from $26.

"Following the February 15 resetting of guidance," he said, "checks suggest demand may remain challenging through the first half of 2001 with only a modest uptick in the late second-half of 2001 and calendar year 2002," he wrote in a note to investors.

It has been a rough year and a half for Nortel. The networking giant underwent a Dickensian "best of times, worst of times" 2000 that saw its stock price skyrocket to $81.25 before falling 79% to its Friday closing price of $17.40.

In fact, in the last full week of October, Nortel fell 38% alone after it warned that revenues would not meet expectations, touching off a wave of warnings from the optical networking sector. This, in turn, touched off a wave of selling in tech that crushed returns for the

Nasdaq Composite Index.