Lucent Reports Improved Q2
The company's results were significantly impacted by Winstar and the writedowns of certain equity investments, which totaled 15 cents per share in the quarter. Lucent said that it has fully reserved for its loans to Winstar, which recently announced that it is seeking protection under the U.S. Bankruptcy Code. In addition, the company announced significant progress with its comprehensive business restructuring plan to streamline its operations, reduce its cost structure and improve working capital.
"Lucent delivered much-improved performance in the quarter, despite continued softness in several key markets worldwide," said Lucent Technologies Chairman and Chief Executive Officer Henry Schacht. "We saw particular strength from large service providers around the world. We continue to aggressively execute on our comprehensive business restructuring program, which, coupled with the continued positive momentum we are seeing in revenues, is a major step forward in Lucent's turnaround."