Lucent Technologies comments on fourth fiscal quarter 2002
FOR RELEASE FRIDAY SEPTEMBER 13, 2002
- Expects fourth fiscal quarter revenues to decline by approximately 20-25% percent sequentially
- Pro forma loss per share from continuing operations expected to be approximately 45 cents
- Targeting new quarterly EPS breakeven revenue in the range of $2.5-$3.0 billion
MURRAY HILL, N.J. - Lucent Technologies (NYSE: LU) today announced that, due to continuing market softness and ongoing uncertainty in customer spending levels, particularly in North America, it currently expects revenues for the fourth fiscal quarter of 2002 to decline sequentially by approximately 20-25 percent from the $2.95 billion recorded in the third fiscal quarter.
The company currently expects to post a pro forma1 loss per share in the fourth fiscal quarter of approximately 45 cents, primarily as a result of the sequential revenue decline, charges associated with a significant customer financing default this month, and the inability to recognize tax benefits on losses. The company had not previously provided guidance for the fourth fiscal quarter of 2002 due to ongoing market uncertainty.
Last quarter, the company posted a pro forma loss of $1.88 per share from continuing operations. Excluding the impact of a non-cash charge of $1.72 per share to increase the valuation allowance on deferred tax assets, the pro forma loss per share (assuming a tax benefit for the quarter) would have been a loss of 16 cents. On a pre tax basis, the pro forma loss per share would have been 24 cents.
The company stated that, given the anticipated results for the quarter, it expects to meet the financial covenants of its existing credit facility. The company noted that it has no outstanding balance on this credit facility.
In addition, the company said today that it is also actively developing plans to reduce its quarterly EPS breakeven revenue to a range of $2.5 billion to $3.0 billion. With these additional restructuring actions, the company continues to work toward a return to profitability by the end of fiscal 2003. Lucent will provide an update on its new quarterly EPS breakeven revenue figure and its impact on the company's headcount at its October 23 earnings announcement.
Lucent Technologies, headquartered in Murray Hill, N.J., USA, designs and delivers networks for the world's largest communications service providers. Backed by Bell Labs research and development, Lucent relies on its strengths in mobility, optical, data and voice networking technologies as well as software and services to develop next-generation networks. The company's systems, services and software are designed to help customers quickly deploy and better manage their networks and create new, revenue-generating services that help businesses and consumers. For more information on Lucent Technologies, visit its Web site at lucent.com. |
