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Exhibit 99
News Release [LUCENT TECHNOLOGIES LOGO]
Bill Price
908-582-4820 (office)
973-515-5038 (home)
[email protected]
Mary Lou Ambrus
908-582-3060 (office)
908-707-1147 (home)
[email protected]
LUCENT TECHNOLOGIES COMMENTS ON EXPECTATIONS
FOR FOURTH FISCAL QUARTER 2000 EARNINGS
FOR RELEASE: TUESDAY, OCTOBER 10, 2000
MURRAY HILL, N.J. - Lucent Technologies (NYSE:LU) said today that,
based on preliminary estimates, it expects earnings for its fourth fiscal
quarter of 2000 to be lower than the company's previously announced guidance.
The company expects pro forma earnings per share from continuing operations1 for
the quarter, which ended September 30, 2000, to be in the range of 17 cents to
18 cents per share compared to 24 cents for the year-ago quarter. The company
expects to report pro forma revenues from continuing operations in the range of
$9.3 billion to $9.4 billion for the quarter, a 14 percent to 15 percent
increase over the prior year period.
In July, the company said it expected that pro forma revenues from
continuing operations would grow about 15 percent for the fourth fiscal quarter
of 2000 and pro forma earnings per share from continuing operations would be
roughly in line with revenue growth.
The company said the lower-than-expected earnings for the quarter could
be almost equally attributed to three factors:
Less than expected revenues and gross margins in the company's optical
systems business;
Credit concerns in the emerging service provider market that led to
increasing reserves for bad debt;
Greater than anticipated decline in circuit switching sales and
margins.
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The company indicated that gross margin this quarter would be in the
range of 39 percent to 40 percent.
For the quarter, the company indicated that while it had strong overall
growth in the wireless business, it would report flat growth primarily due to a
comparison related to a major foreign contract in the year-ago quarter. Revenues
from optical networking systems, including optical fiber, were down about 5
percent and switching systems were down about 13 percent. However, Lucent saw
strong revenue growth in several areas. The company's Microelectronics and
Communications Technologies group's revenues grew more than 50 percent for the
quarter. In addition, revenues in the Internet infrastructure business grew more
than 40 percent for the quarter. This marks the fourth quarter in a row that
this business showed growth over 40 percent. Lucent's services business grew
about 18 percent for the quarter.
FISCAL 2000 RESULTS
The company indicated that the expected fourth quarter revenue and
earnings would result in an increase in fiscal year 2000 pro forma revenue from
continuing operations of approximately 14 percent and a decline in pro forma
earnings per share from continuing operations of approximately 10 percent to 11
percent. Lucent said that its fourth quarter results will impact and lower its
guidance for fiscal year 2001.
Lucent expects to discuss its earnings and additional guidance for
fiscal 2001 on October 24, 2000. There will be a Webcast at 5:00 p.m. (EDT)
today to discuss today's announcement. The Webcast can be accessed at [url
deleted].
Lucent Technologies, headquartered in Murray Hill, N.J., USA, designs
and delivers the systems, software, silicon and services for next-generation
communications networks for service providers and enterprises. Backed by the
research and development of Bell Labs, Lucent focuses on high-growth areas such
as broadband and mobile Internet infrastructure; communications software,
communications semiconductors and optoelectronics; Web-based enterprise
solutions that link private and public networks; and professional network design
and consulting services.
This news release is based on preliminary financial results, which are
subject to further review and adjustment, and contains forward-looking
statements based on current expectations, forecasts and assumptions that involve
risks and uncertainties that could cause actual outcomes and results to differ
materially. These risks and uncertainties include price and product competition,
dependence on new product development, reliance on major customers, customer
demand for our products and services, the ability to successfully integrate
acquired companies, control of costs and expenses, credit concerns in the
emerging service provider market, international growth, general industry and
market conditions, growth rates and general domestic and international economic
conditions, including interest rate and currency exchange rate fluctuations. For
a further list and description of such risks and uncertainties, see the reports
filed by Lucent with the Securities and Exchange Commission. Lucent disclaims
any intention or obligation to
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update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
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1 Pro forma EPS excludes the enterprise networks business that has been spun
off, the consumer products business, amortization of goodwill and acquired
technology and one-time events, including purchased in-process research and
development.
