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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: Softechie who wrote (19319)	3/12/2002 10:39:02 PM
From: Softechie	Read Replies (1) \| Respond to of 21876

Lucent Cuts Sales Forecast As Customer Spending Tightens 12 Mar 14:55 By Johnathan Burns Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Lucent Technologies Inc. (LU) lowered its sales growth projections for the ongoing quarter Tuesday and said it will not turn a profit in fiscal 2002, blaming further constricted capital spending plans by North American wireline service providers. In addition, the company said its planned spin to shareholders of its remaining stake in Agere Systems Inc. (AGRA) will not occur until the calendar third quarter - one quarter later than originally planned - as the company will be unable to meet financial metrics demanded by its creditors to complete the spin. However, Chief Financial Officer Frank D'Amelio said the company believes the Internal Revenue Service will still allow the company to complete the spin on a tax-free basis. Given the sorry state of the telecommunications equipment environment, the revision to sales was not exactly unexpected. "We are not surprised about this shortfall, despite (previous) optimism from management about the March quarter," said Ken Leon, telecommunications equipment analyst with ABN-AMRO. "What's changed? Market conditions for carrier (capital spending) continues to weaken, making the next few quarters uncertain over aa telecom equipment recovery." Chief Executive Patricia Russo said Lucent expects fiscal second quarter sales to grow a modest amount to as much as 10% over the first quarter's $3.58 billion. As recently as three weeks ago, Russo and other Lucent officials believed sales could grow 10% to 15% sequentially. The company did say it could still hit its goals on sequential improvements in net losses and margins. For the first two months of the year, sales were in line with the company's projections, Russo said. It was only in the past two weeks - and most importantly, after a sales funnel review was completed Monday - that Lucent officials felt it necessary to issue the warning, Russo said. "We had 10% to 15% out there because that's what we saw and we had good visibility," she said in an interview. "I think it's important to remember we reaffirmed top-line growth, available margins still in the 20% (range) and bottom-line improvement." Shareholders did not appear swayed, recently sending the stock down 11.5%, or 72 cents, to $5.54 with volume approaching 61 million shares compared with the daily average of 23 million. The stock had traded down as low as $5 a share earlier, matching a 52-week low set in October. (MORE) DOW JONES NEWS 03-12-02 02:55 PM