reported another quarterly loss as revenue fell about 50%, and the company said it plans another round of job cuts as a spending rebound failed to materialize.
The telecommunications equipment maker said it plans to cut another 7,000 jobs as part of a new restructuring program that resulted in charges of $808 million in the third quarter, with $335 million in cash charges. The move is expected to save about $700 million annually, and the company said most of the cuts would be made by the end of the year.
For the third quarter, Lucent posted a loss of $7.91 billion, or $2.31 a share, compared with a loss of $3.24 billion, or 95 cents a share, a year ago. Excluding charges relating to discontinued operations, amortization of goodwill, restructuring, and impairment, the company lost $1.86 a share.
Lucent also said its operating results included a charge of $1.70 a share to increase the valuation allowance on tax assets. Without this charge, the company would have lost 16 cents a share, compared to a loss of 39 cents a year ago. Analysts polled by Thomson Financial/First Call had been expecting a loss of 14 cents.
Revenue fell to $2.95 billion from $5.37 billion a year ago as spending continued to shrivel in the volatile telecom market. In a statement, the company said, "The market continues to be very challenging. And while our bottom line was negatively impacted by a non-cash charge we recorded this quarter, we continue to see improvements in the operating fundamentals of our business."
Lucent refused to provide fourth-quarter guidance, blaming ongoing market uncertainty, but the company said it still plans to return to profitability in 2003.
Shares of Lucent were recently falling about 2% on the news to $2.06 in Instinet premarket trading after closing at $2.10 Monday.