this morning said it will have significant losses in its current quarter and announced a restructuring plan. This follows the announcement last night from its former parent,
, which lowered its own earnings guidance.
Lucent this morning said it expects a pro forma loss of 25 cents to 30 cents per share in the first fiscal quarter of 2001, which ends at year-end. Analysts polled by earnings tracker
First Call/Thomson Financial
are expecting a loss of 1 cent. Lucent's fourth quarter of 2000 will also disappoint. Instead of the expected $9.4 billion in revenues and earnings of 18 cents a share for the quarter that ended in September, the company said it had $8.7 billion in revenue and earnings of 10 cents a share.
In October, the telecommunications equipment giant that was spun off from AT&T warned that fourth-quarter earnings would fall short of Wall Street expectations, marking its then fourth consecutive shortfall dating back to the first fiscal quarter of this year. After that announcement,
took a look at how the one-time darling of Wall Street was
in a tailspin.
And the downward spiral clearly hasn't ended.
Full-year 2000 earnings, Lucent said this morning, will come in at 93 cents a share on $33.6 billion in revenue. Analysts surveyed by First Call anticipate 99 cents for the year. The company's response? "Fiscal year 2001 will be a rebuilding year, a turnaround year for Lucent," chief executive officer Henry Schacht said in a press release.
Lucent blamed its troubles on the problems among competitive local phone companies, the slowdown in capital spending among established telecommunications companies and lower software sales. It said its restructuring program should save $1 billion "as the company redesigns its internal systems and processes for long-term, sustainable growth." Among the changes that are planned: eliminating duplicate marketing efforts, consolidation in its corporate office and streamlining sales. Lucent is spinning off its microelectronics unit and selling its Power Systems business to
last night lowered its revenue and earnings guidance for the fourth quarter and chopped its quarterly dividend, saying changes in the anticipated signing of certain large network management contracts and an industrywide slowdown are hurting its operations.
All is not dismal throughout the telecom landscape, however. Qwest, a Denver-based telecommunications company that sells Internet and phone services, this morning said its fourth-quarter results will meet or beat estimates. And it reconfirmed earlier projections for 2000 and 2001.