Lucius---Hope this helps explains the revenue issue ---Lucent Technologies Inc.
Dow Jones Newswires -- January 21, 1999
Lucent 1Q Earnings Beat Views, But Delays Nick Rev
Growth
By Shawn Young
NEW YORK (Dow Jones)--Lucent Technologies Inc. (LU) turned in another in an unbroken string
of quarterly earnings reports that beat expectations, but first fiscal quarter revenue growth was hurt
by delays that will push more than $800 million onto the second-quarter books.
The Murray Hill, N.J., telecommunications equipment maker's revenue grew 6% to $9.2 billion from
$8.7 billion a year ago as the company's accounting policies barred it from adding some orders to the
quarter's top line.
However, the company said demand remains intense. Lucent said it has booked more than $1 billion
in revenue so far this month and it expects revenue growth of 30% in the second fiscal quarter. It
forecasts revenue growth of 19% to 20% for the fiscal year and earnings growth of about 35%.
"Revenue growth was extremely disappointing based on some revenue recognition issues," said J.P.
Morgan Securities Inc. analyst Gregory Geiling. "That said, their outlook is extremely positive."
However temporary or bureaucratic it may be, the revenue letdown is the first disappointment many
investors have experienced from the former equipment-making unit of AT&T Corp. (T), and the
stock reflected that Thursday.
The company's NYSE-listed shares were down 6 7/16, or 5.6%, recently to 109 1/16 in brisk
trading.
Geiling characterized the dip as a "buying opportunity."
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PS. That would have brought it up to a 14 % increase in revenues . |
