Lucent Q3 revenue to drop more than 10 percent

Lucent Technologies on Thursday announced that, due to continuing market softness, it expects revenues for the third fiscal quarter of 2002 to decline 10 percent to 15 percent from the second quarter.

Lucent also said it expects sequential improvement in the third quarter's bottom line from the pro forma loss of $0.20 per share recorded in the second quarter. This is in keeping with guidance it provided back in April when it said it expected modest sequential improvement, on a pro forma basis, in the bottom line for the third quarter, assuming no significant change in revenue levels.

Lucent cautioned, however, that while sequential improvement is possible, it's still too early to call, given current market conditions.

"Service providers continue to constrain their capital spending to conserve cash, which is clearly affecting our top line," said Lucent's CEO Patricia Russo, who pointed out that the company is seeing declines primarily in wireline systems in North America. "We remain focused on controlling those things we can control. We still address a very large market where primary demand from end users wanting more and better services will ultimately drive demand for more infrastructure. When the market turns around, we will be well-positioned to profitably grow the business."

Lucent continues to target a return to profitability and positive cash flow during fiscal 2003. The company announces third quarter earnings on July 23, and closes its fiscal year on Sept. 30.

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