Lucent said on Thursday that it sees a "low point" ahead in its fiscal first quarter for revenues, but predicted a return to profitability in 2002.
The struggling Murray Hill, New-Jersey based network equipment maker said it expects revenues of between $3.1 and $3.4 billion and a pro forma loss of 23 to 26 cents per share in its fiscal first quarter of 2002. Analysts were expecting a loss of 17 cents per share. Revenue in the first quarter of last year was $4.8 billion.
Lucent said it expects a sequential improvement in revenues and loss per share in the second quarter of 2002, and a positive cash flow shortly after that.
Lucent cited an industry-wide downturn in spending for network infrastructure and related services as the cause of 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," said Lucent Chairman and Chief Executive Officer Henry Schacht in a written statement. "An early view of our sales funnel continues to suggest an improved sequential top line performance and continued sequential improvement in the bottom line in the second fiscal quarter, on a pro forma basis."
Looking ahead, Lucent said it expects 35 percent gross margins in fiscal 2003 "through improved sales volumes and product mix, reduction of one-time items, continued implementation of cost reductions, market and product rationalization work and introduction of new products."
Lucent also reaffirmed its intent to spin off Agere Systems in 2002.
In trading late Thursday morning, Lucent was down .90 to 6.83 per share, or 11.64 percent.