Thread---Lucent Technologies Inc.
Dow Jones Newswires -- June 28, 1999
DJ Lucent CEO Reaffirms FY99 20% Rev,35% Erns
Growth Outlook
By Cecilia M. Kang
PALO ALTO, Calif. (Dow Jones)--Lucent Technologies' (LU) chief executive reaffirmed his
earnings estimates of 19% to 20% revenue growth and 35% earnings growth for fiscal year 1999
ending Sept. 30.
In a press briefing on Lucent's acquisition of Ascend Communications Inc. in San Francisco Monday,
Rich McGinn said he expects revenue to reach around $40 billion this year and $45 billion in 2000.
Lucent has a 7% share of the global communications networks market and will outpace the industry's
growth rate of around 14% a year by 3 to 5 percentage points, said McGinn.
He added that the company's growth will be driven by internal expansion of current business rather
than through acquisitions.
Lucent plans to spend $4 billion this year on research and development for new products and
technology, said McGinn.
"We will invest heavily in organic growth," said McGinn. "We're investing in distribution channels,
hiring new people, in R&D and in the highest growth areas."
With the merger of Ascend, completed last week, Lucent doesn't plan layoffs but expects to have a
greater presence in Silicon Valley, he said.
BEST WISHES
BILL
PS Sounds they will beat the qtr ---sure wish they would announced a nice big contract or two . |
