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: Jeff Jordan who wrote (17495)	1/12/2001 5:08:02 PM
From: Softechie	Respond to of 21876

Lucent debts getting negative. Troubles? Lucent A Sr Unsec On Fitch Watch Negative LU DJ Lucent A Sr Unsec On Fitch Watch Negative 12 Jan 16:01 FITCH MAY CUT LUCENT SINGLE-A SENIOR UNSECURED DEBT RATING REUTERS Rtr 16:03 01-12-01 FITCH MAY CUT LUCENT F1 COMMERCIAL PAPER RATING REUTERS Rtr 16:04 01-12-01 Fitch may cut Lucent single-A, F1 ratings (Press release provided by Fitch) NEW YORK, Jan 12 - Fitch has placed the A' senior unsecured and F1' commercial paper ratings of Lucent on Rating Watch Negative. Rating clarity will be achieved in the next several weeks after company meetings. This rating action reflects a weakening credit profile due to lower than expected revenues and gross margins across several businesses, the financial revisions during 2000, credit concerns in the emerging service provider market, and uncertainty regarding future financial performance. More specifically, financial performance for Lucent was hurt in 2000 due to a late 10G optical product roll-out in early 2000, continuing issues related to the deployment of the OC-192 optical systems, and a rapid decline in circuit switching sales and margins. Additionally, Lucent revised downward the fourth fiscal quarter revenue by $679 million due to several revenue recognition issues. Gross margin decreased substantially due to decreased volumes and margins in the optical and switching business and competitive pricing pressures across other businesses. As a result of the above issues, Lucent announced a $1 billion business restructuring plan to re-design its internal systems and processes. Benefit from this cost reduction plan is expected in the second half of fiscal 2001. An additional credit consideration for Lucent is its vendor financing program with total commitments and drawn amounts of $6.7 billion and $1.3 billion, respectively, as of Sept. 30, 2000. Lucent recently completed the sale of its Power System division to Tyco for $2.5 billion in cash which provides it with some financial flexibility. Lucent also has announced its intention to spin off its microelectronic business, which also could be a source of funding for the company. The strength of Lucent's business remains its broad product portfolio, large installed equipment base, and its Bell Labs research facility. REUTERS Rtr 16:06 01-12-01