MURRAY HILL, NJ, Lucent Technologies announced restructuring plans Thursday after warning of a pro forma loss of 25 to 30 cents per share from continuing operations in its first quarter.
The company also restated its fiscal fourth quarter revenue to $8.7 billion, with pro forma earnings to 10 cents a share on continuing operations, after it completed a review of its revenue.
This is lower than the originally reported $9.4 billion in revenue and pro forma earnings of 18 cents a share. Lucent said adjusted results for the last fiscal year will be $33.6 billion in revenue, with pro forma earnings of 93 cents a share from continuing operations.
Analysts at First Call/Thomson Financial expect Lucent to report a first quarter loss of 1 cent a share on an ongoing pro forma basis.
Fiscal year 2001 will be a rebuilding year, a turnaround year for Lucent, said Lucent Chairman and CEO Henry Schacht. We have identified the issues we must tackle, and we are undertaking a major re-tooling of the business.
Lucent anticipates that for the first fiscal quarter of 2001, pro forma revenues will decline about 20 percent compared to the year-ago quarter. Pro forma earnings per share on continuing operations are also expected to show a loss in the range of 25 to 30 cents per share.
The company plans to reduce costs by $1 billion with a plan consisting of force reductions and asset write downs.
The plan includes rationalization of various product lines, consolidation of corporate functions, cuts in marketing operations and streamlining sales support as it moves technical resources closer to its customers.
Lucent said it would give details of the charge related to the restructuring plan when it announces first quarter results in late January.
