I just bought more JDU but I think I was a bit quick:
Lucent Technologies Comments on Expectations for First
Fiscal Quarter 2000 Earnings
MURRAY HILL, N.J., Jan. 6 /PRNewswire/ -- Lucent Technologies (NYSE: LU) said today that, based
on preliminary estimates, it expects operating results for its first fiscal quarter of 2000 to be lower than
analysts' estimates. The company expects to report revenues in the range of $9.8 to $9.9 billion for the
quarter, which ended Dec. 31, 1999, flat with the prior year period(1) The company expects earnings per
share for the quarter to be in the range of 36 to 39 cents compared to 48 cents for the year-ago
quarter.(2)
"We are clearly disappointed with the results for the quarter," said Lucent Technologies Chairman and
CEO Richard McGinn. "We still expect our revenues to continue to grow three-to-five percentage points
faster than the overall communications networking market," McGinn said. "However, given the slow start
for the year, we expect to be in the lower end of that range for fiscal 2000." Analysts estimate that the
overall communications networking market is growing at about 14 percent a year. McGinn said the
company expects bottom-line growth of approximately 20 to 25 percent for the fiscal year over last
year's earnings per share of $1.20.
For the second fiscal quarter, the company indicated it expects top-line growth of approximately 12 to
15 percent over last year's level of $8.78 billion and bottom-line growth of approximately 25 to 35
percent over last year's 17 cents a share. The strongest growth is expected in the second half of fiscal
2000 as the company's newest optical, network access and semiconductor products ramp up for full
volume and deployment.
The company attributed the lower than expected revenue and earnings for the first fiscal quarter to
several factors, including:
-- Faster than anticipated shifts in customers' purchases to Lucent's
newest 80-channel DWDM optical product line and greater than expected
demand for OC-192 capability on the 80-channel systems, which resulted
in near-term manufacturing capacity and deployment constraints;
-- Changes in implementation plans by a number of customers inside and
outside the United States, which led to delays in network deployments
by enterprises and service providers;
-- Lower software revenues, reflecting an acceleration in the continuing
trend by service providers to acquire software more evenly throughout
the year. In the past, these purchases occurred primarily in the
quarter ending December 31; and
-- Preliminary results show lower than anticipated gross margins this
quarter from ramp-up costs associated with introducing and implementing
new products and lower software revenues.
The company expects the capacity and deployment issues to be resolved by the end of the second fiscal
quarter as new product introductions are completed, production adjustments meet increased customer
demand, and additional resources are added for deployment. The company also anticipates the major
network deployments that were delayed to occur during fiscal 2000.
Lucent expects to announce first fiscal quarter earnings on January 20, 2000 after the close of trading on
the New York Stock Exchange.
Lucent Technologies, headquartered in Murray Hill, N.J., USA, designs, builds and delivers a wide range
of public and private networks, communications systems and software, data networking systems,
business telephone systems and microelectronic components. Bell Laboratories is the research and
development arm for the company. For more information on Lucent Technologies, visit its Web site at
lucent.com.
This news release is based on preliminary financial results, which are subject to further review and
adjustment, and contains forward-looking statements based on current expectations, forecasts and
assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ
materially. These risks and uncertainties include price and product competition, dependence on new
product development, reliance on major customers, customer demand for our products and services, the
ability to successfully integrate acquired companies, control of costs and expenses, international growth,
general industry and market conditions, growth rates and general domestic and international economic
conditions, including interest rate and currency exchange rate fluctuations. For a further list and
description of such risks and uncertainties, see the reports filed by Lucent with the Securities and
Exchange Commission. Lucent disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future events or otherwise.
(1) All items in both the 1999 and 2000 periods include the results of
recent mergers with International Network Services and Excel
Switching.
(2) All earnings per share reported in this release are diluted EPS
figures.
SOURCE: Lucent Technologies |
