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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: Cooters who wrote (20243)	3/12/2002 11:05:00 AM
From: Eric L	Respond to of 196654

re: Lucent Casts More Gloom "... a market issue, not a Lucent issue. Operators have pulled back [on their equipment purchases] further than we anticipated in our plans." ... announcements about reduced investments from companies such as BellSouth, Verizon and Qwest are taking their toll on Lucent's business. "On the back of Lucent's gloomy revision, it also confirmed it would not now seek to spin off its Agere semiconductor unit in Q2, as previously planned ... more likely fiscal Q3 2002." >> Lucent Revises Outlook - Still Losing 'Hundreds Of Millions A Month' Simon Marshall Total Telecom Hannover 12 March 2002 Lucent Technologies has downwardly revised its expected sequential top line financial improvement from a "10% to 15%" range to a "modest to 10%," but maintained on Tuesday that its bottom line improvement would still be in line with previous guidance. The news, delivered to telecoms journalists at the CeBIT trade show in Hannover on Tuesday, suggests the embattled vendor is still struggling for market visibility as it continues an extensive internal streamlining process. "[CEO Patricia Russo was] previously on the record as saying there would be a 10% to 15% increase," Bill O'Shea, president of Lucent's Bell Laboratories R&D division, told Total Telecom. "[Top line] revenue growth will be more modest at up to 10%," he confirmed. "[This] is [the result] of a market issue, not a Lucent issue," he said. "Operators have pulled back [on their equipment purchases] further than we anticipated in our plans." O'Shea told Total Telecom that Lucent is "still losing hundreds of millions of dollars a month," and that "there is still a lot of work to be done." On the back of Lucent's gloomy revision, it also confirmed it would not now seek to spin off its Agere semiconductor unit in Q2, as previously planned. "This will more likely take place during next quarter," said O'Shea, referring to fiscal Q3 2002. Lucent was depending on using results from its fiscal second quarter to meet an EBITDA performance condition defined under its credit facility to complete the spin off, but it failed to meet the agreed target. The company is confident of obtaining a supplemental ruling from the US Internal Revenue Service that the Agere spin off be tax-free to Lucent and its shareholders, despite the delay. Explaining Lucent's sudden downward revision, chief financial officer Frank D'Amelio said in a prepared statement: "Large service providers continue to reduce or defer their spending as they rethink their business plans and conserve cash, which is having an impact on our top line." O'Shea told Total Telecom this meant that announcements about reduced investments from companies such as BellSouth, Verizon and Qwest were taking their toll on Lucent's business. Lucent added that gross margins in the 20% range were still achievable for the second quarter, and looking ahead, in the 35% range as early as 2003. "Our aggressive restructuring plan is enabling us to deliver improved margins despite the continuing reduction in spending by large service providers," said D'Amelio. The sentiment was echoed by CEO Russo, who added that Lucent would continue to "monitor the market for, and if necessary, take the appropriate actions to continue to align Lucent with current market conditions." Lucent did not comment on how Tuesday's top line revision may affect its year-end results, but it seems fair in the light of Russo's qualification that Lucent remains braced for further revisions. Separately, Lucent confirmed that legislation signed into law by U.S. president Bush would adversely affect earnings per share for the second quarter, resulting in an unanticipated tax charge of around six cents per share for the quarter. << - Eric -

To: Cooters who wrote (20243)	3/12/2002 11:18:21 AM
From: Dennis Roth	Read Replies (1) \| Respond to of 196654

CEBIT Mobilcom still sees UMTS network launch in Q4 afxpress.com HANNOVER, Germany (AFX) - Mobilcom AG has reconfirmed its target to launch its third generation UMTS network in the fourth quarter when it will cover 20 large German towns, chairman Gerhard Schmid said at a news conference. He added that for the network to be up and running on schedule, the firm is dependent on mobile phone manufacturers bringing UMTS compatible handsets onto the market. Schmid declined to comment on the public feud going on between Mobilcom and France Telecom. Asked whether the UMTS launch date could be delayed by the debate over funding agreed to be provided by France Telecom over a 10 year period in order for Mobilcom to acquire the UMTS licence and subsequently to build the network, he said: "I do not know of any conflict with France Telecom." jcm/jmp