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

To: matt dillabough who wrote (19693)	3/28/2002 8:50:49 AM
From: sylvester80	Respond to of 21876

Great news for Lucent. Not only do they get $125 million of equipment and inventory from the North Andover facility, but IMO, they should be able to show operating savings of about $.5 billion a year from those 700 jobs gone. IMO, I'll be looking back 12 months from now and I'll be wondering why I did not buy even more down here. JMHO. biz.yahoo.com Thursday March 28, 8:30 am Eastern Time Press Release SOURCE: Lucent Technologies Solectron Enters Into Agreement With Lucent Technologies to Purchase Inventory And Equipment Related to Optical Manufacturing - Solectron to produce optical line systems for Lucent as part of three-year manufacturing agreement - MURRAY HILL, N.J., March 28 /PRNewswire-FirstCall/ -- Lucent Technologies (NYSE: LU - news) today announced that California-based Solectron Corporation (NYSE: SLR - news) has agreed to pay Lucent $125 million for certain equipment and inventory at its manufacturing operations at North Andover, Mass. Lucent also signed a three-year manufacturing supply agreement for optical line systems with Solectron, a leading provider of electronics manufacturing services. Solectron will be the primary manufacturer for Lucent's advanced optical systems, including its key Lambda and WaveStar® product families, which are now being produced at the North Andover facility. The supply agreement has a potential value of about $2 billion depending on volumes. ``The agreement with Solectron is another key step in Lucent's strategy of expanding the use of leading contract manufacturers so we can benefit from their expertise and investments,'' said Jose Mejia, president, Lucent Technologies Supply Chain Networks. ``This gives us the flexibility to adapt quickly to changing customer needs and enables us to focus our resources on the complex task of designing, building and managing the world's most advanced and reliable communications networks.'' Currently about 1,600 Lucent employees are involved in the manufacturing work at the North Andover facility but nearly 400 employees were already scheduled to leave the company on March 31, as they had taken advantage of an early retirement offer made last fall. Of the remaining 1,200, about 500 employees will be employed at Lucent's Northeast Systems Integration Center and close to 400 Lucent employees will transfer to A-Plus Manufacturing, a Solectron company. Most of the remaining employees will join Solectron for a transition period expected to last several months. The company said it expects to sell the Lucent building in North Andover. In addition to the 1,600 involved in manufacturing, about 1,200 people from other Lucent units work there. These employees, as well as those who are part of the systems integration center, will remain at the facility until a final decision is made about the building. The transaction is expected to close in Lucent's third fiscal quarter, which ends June 30, and is subject to customary closing conditions, including regulatory approvals.