(PR NEWSWIRE) Lucent Technologies Comments On Expectations For Fourth Fiscal Quarter 2000
Earnings
MURRAY HILL, N.J., Oct. 10 /PRNewswire/ -- Lucent Technologies (NYSE: LU)
said today that, based on preliminary estimates, it expects earnings for its
fourth fiscal quarter of 2000 to be lower than the company's previously
announced guidance. The company expects pro forma earnings per share from
continuing operations(1) for the quarter, which ended September 30, 2000, to
be in the range of 17 cents to 18 cents per share compared to 24 cents for the
year-ago quarter. The company expects to report pro forma revenues from
continuing operations in the range of $9.3 billion to $9.4 billion for the
quarter, a 14 percent to 15 percent increase over the prior year period.
In July, the company said it expected that pro forma revenues from
continuing operations would grow about 15 percent for the fourth fiscal
quarter of 2000 and pro forma earnings per share from continuing operations
would be roughly in line with revenue growth.
The company said the lower-than-expected earnings for the quarter could be
almost equally attributed to three factors:
-- Less than expected revenues and gross margins in the company's optical
systems business;
-- Credit concerns in the emerging service provider market that led to
increasing reserves for bad debt;
-- Greater than anticipated decline in circuit switching sales and
margins.
The company indicated that gross margin this quarter would be in the range
of 39 percent to 40 percent.
For the quarter, the company indicated that while it had strong overall
growth in the wireless business, it would report flat growth primarily due to
a comparison related to a major foreign contract in the year-ago quarter.
Revenues from optical networking systems, including optical fiber, were down
about 5 percent and switching systems were down about 13 percent. However,
Lucent saw strong revenue growth in several areas. The company's
Microelectronics and Communications Technologies group's revenues grew more
than 50 percent for the quarter. In addition, revenues in the Internet
infrastructure business grew more than 40 percent for the quarter. This marks
the fourth quarter in a row that this business showed growth over 40 percent.
Lucent's services business grew about 18 percent for the quarter.
Fiscal 2000 results
The company indicated that the expected fourth quarter revenue and
earnings would result in an increase in fiscal year 2000 pro forma revenue
from continuing operations of approximately 14 percent and a decline in pro
forma earnings per share from continuing operations of approximately
10 percent to 11 percent. Lucent said that its fourth quarter results will
impact and lower its guidance for fiscal year 2001.
Lucent expects to discuss its earnings and additional guidance for fiscal
2001 on October 24, 2000. There will be a Webcast at 5:00 p.m. (EDT) today to
discuss today's announcement. The Webcast can be accessed at
lucent.com.
Lucent Technologies, headquartered in Murray Hill, N.J., USA, designs and
delivers the systems, software, silicon and services for next-generation
communications networks for service providers and enterprises. Backed by the
research and development of Bell Labs, Lucent focuses on high-growth areas
such as broadband and mobile Internet infrastructure; communications software,
communications semiconductors and optoelectronics; Web-based enterprise
solutions that link private and public networks; and professional network
design and consulting services. 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,
credit concerns in the emerging service provider market, 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) Pro forma EPS excludes the enterprise networks business that has been
spun off, the consumer products business, amortization of goodwill and
acquired technology and one-time events, including purchased in-process
research and development.
SOURCE Lucent Technologies
-0- 10/10/2000
/CONTACT: Bill Price, 908-582-4820 - office, 973-515-5038 - home,
williamprice@lucent.com, or Mary Lou Ambrus, 908-582-3060 - office, 908-707-
1147 - home, mambrus@lucent.com, both of Lucent Technologies/
/Web site: lucent.com
(LU)
CO: Lucent Technologies
ST: New Jersey
IN: TLS
SU: ERP
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