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Prospect of Increased Sales Drives Datum Stock Up 19%

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(Bloomberg News)

Datum Inc. stock surged 19% Wednesday amid speculation that shipments of its wireless network components to its biggest customer, Lucent Technologies Inc., will increase.

Shares of Irvine-based Datum rose $6.25 to $38.75 as 697,100 shares changed hands, more than three times the three-month daily average.

Datum, which makes timing devices and other parts for communications systems, is thriving because of its supply agreements with Lucent, said Hambrecht & Quist analyst Joseph Noel. Lucent’s wireless network switches are built with several components supplied by Datum.

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Lucent said Tuesday it signed a five-year multimillion-dollar contract to provide Chicago-based Ameritech Corp. with equipment for the Baby Bell’s digital wireless-phone network.

Lucent, the former equipment arm of AT&T;, has existing supply agreements with its one-time parent, the nation’s largest wireless carrier, that total more than $4 billion.

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