Lucent forges ahead, restructures Agere

Lucent Technologies said Thursday its new focus on its largest customers is paying dividends. Combined with its other restructuring initiatives, this is projected to return the company to profitability by the end of next year, Lucent officials said.

Lucent is projecting 10% to 12% revenue growth per year and gross margins of 35 percent by the end of fiscal year 2003. It also plans to hold research-and-development spending to 12% of revenues, marketing and sales spending to 9%of revenues and general and administrative spending to 4%. The company wouldn’t speculate when these levels will be achieved in 2003. For year 2002, Lucent said the market would remain flat.

Lucent also announced the restructuring of Agere, its microelectronics unit. Agere will be split into two divisions--one focusing on the network equipment and the other on consumer products. The company plans to complete Agere’s spin-off before March, but Lucent officials did not dismiss the possibility of selling Agere outright.