Lucent Reports Q4

MURRAY HILL, N.J. - Lucent Technologies (NYSE: LU) today reported results for the fourth fiscal quarter of 2002 and for fiscal year 2002, which ended Sept. 30, 2002.For the fourth fiscal quarter of 2002, the company recorded pro forma revenues of $2.28 billion, which represented a 23 percent sequential decline from the $2.95 billion in revenues achieved in the third fiscal quarter of 2002 and was consistent with its previous guidance. The company recorded $4.75 billion in pro forma revenues in the year-ago quarter.The company's pro forma loss per share from continuing operations was 64 cents. The loss includes charges of about 38 cents per share associated primarily with a significant customer financing default as well as inventory and certain other asset impairment charges that were taken in light of revised market forecasts. In the third fiscal quarter, the company had posted a pro forma loss of $1.88 per share from continuing operations, which included the impact of a non-cash charge of $1.72 per share to increase the valuation allowance on deferred tax assets. The company recorded a pro forma loss of 28 cents in the year-ago quarter.On an as-reported basis, revenues for the fourth fiscal quarter of 2002 declined 56 percent to $2.28 billion compared with $5.16 billion in the year-ago quarter. Lucent's as-reported net loss for the quarter was $2.81 billion, or 84 cents per basic and diluted share, compared with a net loss of $8.80 billion, or $2.59 per basic and diluted share, in the year-ago quarter."Our top priority is returning Lucent to profitability by the end of fiscal year 2003, while helping our customers address the critical networking and business issues they are facing today," said Lucent Chief Executive Officer Patricia Russo. "We are taking actions that will reduce our cost and expense structure to achieve quarterly breakeven revenue at $2.5 billion by the end of fiscal 2003, and we are working to reduce it further. At the same time, we are maintaining an industry-leading portfolio that will enable us to emerge as a more focused business when the market returns."OUTLOOK FOR FISCAL 2003: Due to the ongoing market decline, the company expects that revenues could be flat to down approximately 10 percent for the first quarter of fiscal year 2003, but with sequential improvement in the bottom line. While not forecasting any improvement in the overall market, Lucent expects an increase in its revenues to about $2.5 billion in the second quarter of fiscal year 2003 based on conversations with its customers. The company continues to work toward a return to profitability in late fiscal year 2003.Lucent Technologies Inc.