In what it described as significant progress toward a turnaround, Lucent Technologies reported quarterly revenue of $2.4 billion, which represents a 16% sequential increase over the previous quarter. The company recorded $3.52 billion in revenues in the year-ago quarter. Net loss for the quarter was $351 million or $0.14 per share, including charges associated with the global settlement of Lucent's shareowner litigation and the repurchase of convertible securities and certain debt obligations and special tax benefits. Some highlights:
- the company is reducing its quarterly breakeven point to about $2.4 billion in quarterly revenue by the end of the fiscal year
the company hopes to be profitable by the end of the year, and is planning for about a 25% revenue decline year-over-year
Lucent had $3.4 billion in cash and short-term investments at the end of Q1 and said this is sufficient to fund its plans
gross margins rose to 31.7%, compared to 21.9% for the prior quarter. The improvement was driven by continuing cost reductions across the business as well as higher sales volume and favorable product mix, primarily in the Mobility business. Increased patent licensing revenues this quarter also contributed to the higher margin rate.
there were no customer financing write-offs during the quarter
Lucent reduced its employee headcount by 1,500 during the quarter, for a total of 38,500 employees. The company expects to employ about 35,000 at the end of the year.
