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

To: Runner who wrote (20598)	7/26/2002 7:49:48 AM
From: John Carragher	Respond to of 21876

Williams Capital (1.65, July 24, 2002) We are reducing our rating on Lucent shares to Sell from Hold, as a recovery in the share price looks at least a year away. We are leaving our bottom-line projections (loss per share of $0.17) in place for fiscal year 2003, ending September, but are reducing our revenue forecast for fiscal 2003 ($12.1 billion) below that of fiscal year 2002 ($12.9 billion). With carriers' spending expected to decline again in 2003, it is difficult to find any catalyst for shares of companies in this sector. Lucent offered no top-line guidance for the September quarter. In the prior two quarters, management had been more aggressive, targeting sequential growth and then pre-announcing that it would not reach the targets. We believe that the vaguer outlook is a result of carriers' declining spending as well as an indication of the weaker results some carriers have posted recently. We also believe that management has become more pragmatic about the weak outlook for the market, the positive effect of this being more aggressive cost cutting. Additional employee cuts of 7,000 by the end of 2002, announced in yesterday's conference call for the June quarter, should lower employment to 46,000 people, closer to Nortel's target of 42,000. -- Shayna Malna