Lucent falls on warning

Lucent Technologies’ shares fell more than 10% this morning after the company warned that its first-quarter 2002 results would be lower than analysts’ expectations. At the same time, the company said it sees a glimmer of hope in next year’s expectations.

Previously, Lucent had not provided analysts with specific guidance but said it expected revenues to decline sequentially. Lucent now expects Q1 revenues to be in the range of $3.1 billion to $3.4 billion, compared to $4.8 billion in revenues recorded in the fourth fiscal quarter of 2001.

Loss per share in Q1 should be between 23 cents and 26 cents per share. The company also said it believes projected Q1 revenues for will represent the low point for sales in this current market downturn.

“We continue to move swiftly and decisively on all points of our Phase II restructuring program, which is driving sequential improvement in our bottom line, despite this reduction in sales,” Lucent Chairman and CEO Henry Schacht said in a statement.

Schacht reiterated his previous statements that the company would be cash-flow positive in its fiscal 2002.

Consensus analyst estimates for this quarter were that the company would lose 17 cents per share.

Lucent shares were priced at $6.93 in mid-morning trading, 80 cents per share less than their previous close.

--Vince Vittore, executive editor