Lucent Technologies (LU) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Lucent Technologies (LU)

LU 2.820

0.0%

Nov 7 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Elroy who wrote (21691)	1/20/2005 9:11:56 AM
From: bofp	Read Replies (1) of 21876

A few comments about Lucent's pension credit - 1. Lucent is not trying to fool anyone. They have had to take a pension credit for about 6 YEARS, as required by GAAP, and have fully disclosed it. If their pension plan were UNDER funded, investors would be carping that they had a hidden liability. 2. If you're going to work back to cash, which is always a good idea, take a look at Lucent's D&A. Lucent has been running D&A $140M per quarter above CAPEX, which is a non-cash HIT to earnings. Note that most of Lucent's competitors have written assets down to a MUCH greater extent and that future CAPEX needs are not expected to rise much, as most of manufacturing is being outsourced. 3. If you are trying to analyze this company in a dispassionate manner, you should make BOTH adjustments and realize that the real margins are about 200bp below reported margins. This is a far cry from the hyperbolic statement that they are really only breaking even. 4. Last quarter they generated cash, this quarter, they paid accrued year-end bonuses and had a seasonal build in working capital.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next