Lucent Posts Narrower Loss, Misses Estimates
Lucent Technologies
(LU)
posted a narrower second-quarter loss that missed analyst estimates, and the company said it would have to slash more jobs to move toward profitability.
On a pro forma basis, Lucent lost $631 million, or 20 cents a share, compared with a loss of 41 cents a share in the year-ago period. Analysts polled by Thomson Financial/First Call expected the company to lose 17 cents a share.
On a GAAP basis, the company lost $495 million, or 16 cents a share, compared with a loss of $3.7 billion, or $1.09 a share, in the year-ago quarter, including income of $100 million, or 3 cents a share, related to discontinued operations.
Revenue fell to $3.52 billion from $5.91 billion last year, missing analyst estimates of $3.57 billion, according to Thomson Financial/First Call.
The company said more job cuts will be necessary to move back toward break-even status, with the company now planning a headcount around 50,000 by the end of the year, down from the 56,000 the company previously planned. Lucent also said it now meets bankers' terms for the spinoff of its Agere systems subsidiary, planned for June 1.
Lucent declined to offer specific guidance due to continued uncertainty, but the company said it expects a smaller pro forma loss in the third quarter.
Shares of Lucent were recently trading down 5.6% to $4.05 in Instinet premarket trading on the news.
