Lucent lowers 2006 revenue outlook | VailDaily.com
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Lucent lowers 2006 revenue outlook

MOUNT LAUREL, N.J. – Telecommunications equipment maker Lucent Technologies Inc. said Friday it expects slower revenue growth this year than previously forecast because of lower sales in the United States and China.Its shares slipped 10 cents, or 3.7 percent, to $2.61 in midday trading on the New York Stock Exchange.Lucent also named Chief Financial Officer Frank D’Amelio to the post of chief operating officer, a move that Susquehanna Financial Group analyst Joe Chiasson said should let a well-liked executive have a hand in more aspects of the business.The company forecast that annual revenue will be flat or grow by a percent in the low-single digits, rather than its previously anticipated mid-single digit increase. For fiscal 2005, Lucent reported a profit of $1.19 billion, or 24 cents per share, and revenue of $9.44 billion.Lucent expects first quarter revenue of about $2.05 billion, down from $2.43 billion in the fourth quarter ended Sept. 30.The downgraded projections are particularly troubling, Chiasson said, because it means that the company’s new contract with Cingular Wireless is not enough to make up for slow growth in other parts of the business.Last fall, Lucent won a four-year contract from Cingular to provide a system allowing it to quickly develop new, personalized voice, video, data and multimedia services, the companies said Monday. Lucent did not disclose financial terms of the deal, one of several contracts signed recently for the system.Lucent said it will provide more details when it reports earnings on Jan. 24.Analysts surveyed by Thomson Financial expect earnings per share of 4 cents on revenue of $2.44 billion in the first quarter, and 17 cents on revenue of $9.96 billion for the year.D’Amelio will continue to serve as CFO until Lucent names a successor. In his new post, he will oversee operations including sales, the product groups, the services business, the supply chain, information technology operations and labor relations.Lucent removed the chief operating officer position in 2003, when its last COO, Bob Holder, left the company and Chief Executive Officer Patricia Russo assumed his role. In a statement, Russo said D’Amelio’s appointment would leave her more time to focus on strategy and growth opportunities.Vail, Colorado


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