Updated from 7:41 a.m. EST
Two telecommunications equipment makers,
, were climbing in the premarket session after settling
probes without having to pay additional fines.
Lucent agreed to a settlement in which it vowed not to violate various fraud and bookkeeping rules in the future in an investigation of its revenue recognition in November and December of 2000. It neither admitted nor denied guilt and said it faced no more fines in the matter and wouldn't be required to make any restatements.
The shares were up 12 cents, or 8%, to $1.63 on the Instinet premarket session.
Enterasys was the subject of yearlong SEC investigation after restating earnings for most of 2000 and 2001. Thursday night, the company said it had reached a settlement with the agency that will require no fines and no further revisions to existing financial results.
Enterasys also said it expects the fourth quarter ended in December to show revenue of about $120 million, resulting in a breakeven cash flow and about $305 million of cash and equivalents at the end of the period. Analysts polled by First Call were expecting the company to post revenue of about $124 million.
The shares were up 30 cents, or 17%, to $2.05 on the Instinet premarket session.