Blunder cuts Lucent Q1 sales by $125m

Er... we did our sums wrong... sorry...

By Tony Smith • Get more from this author

Posted in Business, 21st November 2000 15:59 GMT

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Lucent admitted today it has made a mistake its Q1 fiscal predictions, a cock up that will effectively wipe two cents of its earnings and cuts its sales figures for the period by $125 million.

Oh dear. Poor old Lucent doesn't seem to be having a good time of late. Today's warning to investors that they should take the company's previous with a pinch of salt follows an unexpected drop in Q4 2000 earnings and the departure of CEO Rich McGinn, fired to make room for Henry Schact, who the company reckons is better able to get it back in the black.

On 23 October, Lucent said Q1 2001 would see the company break even - ie. post zero earnings. Today's confession means Lucent will actually lose money during the quarter, which ends at the tail end of December. Q1 2001 was already going to be well down on Q1 2000's $1.08 billion (33 cents a share).

Q1 revenue was projected at $7.9 billion - already a drop of seven per cent on Q1 2000 and down 16 per cent on the previous quarter - so the $125 million dip isn't too much of a difference, but it doesn't exactly inspire confidence in the company.

Indeed, its shares fell $2.94 to $18 in today's early trading. That's the lowest the company has been in three years. ®

Lucent boots out boss

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