Feeds

Lucent boots out boss

Stopgap replacement

  • alert
  • submit to reddit

Mobile application security vulnerability report

Lucent Technologies has turfed out CEO Richard McGinn - and in a bit of a hurry too - the only person it can find to replace him at such short-notice is chairman Henry Schacht.

The networking/telecoms equipment maker said it had "determined that an immediate change in leadership was necessary", this weekend at a meeting where the board reviewed the company's recent performance and outlook for the current quarter.

Shacht, 66, has already been Lucent CEO, most recently in 1997, and is a stopgap, until the networking and telecoms equipment maker can finds someone who can restore the company to favour with shareholders.

The company said that firing McGinn was a difficult decision, but that it needed a leader with a different set of skills (someone who can make money?)

Lucent has brought forward its Q4 results today (it was going to be tomorrow morning). The company expects revenues from continuing operations to drop seven per cent and to break even on continuing operations.

Lucent issued a profits warning on October 11; crucially this was the second excuse for the quarter - meaning that the company said it would fail to meet estimates already revised downwards. Its shares plummeted 31 per cent on the day and the profits warning led to a big fall generally in tech stocks.

Wall Street had expected earnings of 23 cents a share, down on the 33 cents a share Lucent posted for the same period last year.

Lucent blamed very poor sales of optical networking products for its woes. Its traditional circuit-switching business isn't doing too well, either.

Since the 11 October Q4 2000 profit and revenue warning, and the $10 drop in Lucent's share price (reaching $22 from $32, itself well down on the $80 Lucent stock was fetching at the start of the year), McGinn was increasingly seen as a liability, and his departure is likely to surprise few company watchers. ®

Related Story

Lucent Avaya 'formed of letters that fit together and enhance one another'

Bridging the IT gap between rising business demands and ageing tools

More from The Register

next story
THUD! WD plonks down SIX TERABYTE 'consumer NAS' fatboy
Now that's a LOT of porn or pirated movies. Or, you know, other consumer stuff
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
FLAPE – the next BIG THING in storage
Find cold data with flash, transmit it from tape
Seagate chances ARM with NAS boxes for the SOHO crowd
There's an Atom-powered offering, too
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.