They just finished the conf call, you can hear it all at www.lucent.com. A few notes I scribbled:
Micro sales +50% over prior year, US 43% other 55%
gross margin 22%, down 15% from FY2000
R & D +39.5% to $1.3 bn
loss is 1.7 bn for Q
receivables -23.8%, sold $600m in vendor credit rec, and $500m in recourse notes
inventories ++ in Q but working hard on it
cash from ops -$1.1 bn in Q, not acceptable (I'll say!)
new exec just to oversee cash flow, big emphasis on that, reports directly to D Hopkins
exec comp tied to operational performance
closemouthed on AGERE due to impending IPO
Big win with Telefonica, but will involve new vendor financing $1.6 bn
liquidity--arranging a new facility
7 point plan to get on track, will be felt in 2hd half
International sales under Mike Butcher "on a tear"
problems are with North Am operations--
serv provider business down in all lines but optical fiber
HS sees "improved sales" this Q, wouldn't elaborate further
HS sees sequential growth top line and bottom line
No comment on Worldcom deal-- they are "working hard" on it and will get back to us ASAP
headcount reduction: 123K less 16.5K AGERE less 10K rif less 6K contract mfturing=about 90K
empl turnover actually down from Sept Q
seeing 50%growth in optical fiber
component shortage, not capacity shortage caused trouble. No probs with capacity
regular div declared, no stock buyback
sales of OC192: on trial, doing will, like what they see, no more detail
sales of 7RE--"excited' about it
management--assembled very good exec staff, confident in them, working hard to fix co.
no news yet on perm CEO, will let us know when it happens
stock opened up and was ticking up on high volume during most of the call.
John |
