Nobody knows the trouble
Telecommunications equipment and software maker Lucent Technologies is getting hit this morning in preopen action on reports the
Securities and Exchange Commission
is investigating the company's accounting practices.
The Wall Street Journal
reported this morning that the SEC is investigating whether Lucent improperly booked $679 million in revenue during its 2000 fiscal year, which ended Sept. 30. There is definitely bad karma for this money -- this is revenue that Lucent had already restated in December, after the company did its own investigation into its accounting. The SEC's investigation focuses on Lucent's procedures involving recognized revenue on certain sales.
In preopen action on electronic network
, where stocks trade before the bell, Lucent had recently lost 89 cents to $16, a 5% drop.
The company's stock is down 76% from its 52-week high of $70.65, sliding dramatically during 2000. In addition to the restatement of earnings, the company has disappointed for the past five quarters and dumped CEO Richard McGinn.
Scott Moritz has been following