Silicon Investor (SI) -- The First Internet Community

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) -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (11852)	12/22/1999 1:13:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 21876

More excerpts from the 10-K concerning cash requirements and financing receivables: Service providers, inside and outside the United States, increasingly have required their suppliers to arrange or provide long-term financing for them as a condition to obtaining or bidding on infrastructure projects. These projects may require financing in amounts ranging from modest sums to over a billion dollars. Lucent has increasingly provided or arranged long-term financing for customers. As market conditions permit, Lucent's intention is to lay off these long-term financing arrangements, which may include both commitments and drawn down borrowings, to financial institutions and investors. This enables Lucent to reduce the amount of its commitments and free up additional financing capacity. As of September 30, 1999, Lucent had made commitments or entered into an agreement to extend credit to customers up to an aggregate of approximately $7,100 million. As of September 30, 1999, approximately $1,600 million had been advanced and was outstanding. In addition, as of September 30, 1999, Lucent had made commitments or entered into agreements to guarantee debt of customers up to an aggregate of approximately $420 million of which approximately $310 million was outstanding. In addition to the above arrangements, Lucent will continue to provide or commit to financing where appropriate for its business. The ability of Lucent to arrange or provide financing for its customers will depend on a number of factors, including Lucent's capital structure and level of available credit, and its continued ability to lay off commitments and drawn down borrowings on acceptable terms. Lucent believes that its credit facilities, cash flow from operations, long- and short-term debt financings and receivables securitizations, will be sufficient to satisfy its future working capital, capital expenditure, research and development and debt service requirements. Lucent has a shelf registration statement to register the possible offering from time to time of long-term debt of which $1,800 million remained available at September 30, 1999. Lucent believes that it will be able to access the capital markets on terms and in amounts that will be satisfactory to it, and that it will be able to obtain bid and performance bonds, to arrange or provide customer financing as necesssary, and to engage in hedging transactions on commercially acceptable terms, although there can be no assurance that Lucent will be successful in regard to any of the foregoing. ***** LIQUIDITY AND CAPITAL RESOURCES Lucent expects that, from time to time, outstanding commercial paper balances may be replaced with short- or long-term borrowings as market conditions permit. At September 30, 1999, Lucent maintained approximately $4.7 billion in credit facilities, of which a portion is used to support Lucent's commercial paper program. At September 30, 1999, approximately $4.4 billion was unused. Future financings will be arranged to meet Lucent's requirements with the timing, amount and form of issue depending on the prevailing market and general economic conditions. Lucent anticipates that borrowings under its bank credit facilities, the issuance of additional commercial paper, cash generated from operations, short- and long-term debt financings and receivable securitizations will be adequate to satisfy its future cash requirements, although there can be no assurance that this will be the case.

To: Chuzzlewit who wrote (11852)	12/22/1999 1:46:00 PM
From: Mr.Fun	Read Replies (3) \| Respond to of 21876

Chuzz, Wow, I am a little miffed at LU management. I was told explicitly that the receivables that were restructured as a finance contract remained on the balance sheet as a note receivable in other current assets. This excerpt completely contradicts that statement. In the grand scheme of things, I am not really distressed about LU's balance sheet issues (in fact NT's are far worse) rather that a company representative would say one thing to a major investor and then report something else in a government filing. While I am personally disappointed, I still believe that the state of the business is extremely strong and that sales and earnings will be to the high side of estimates.