Lucent Reports Much Smaller 2Q Loss

Lucent Technologies

Separately, the Murray Hill-based company said Monday it has finally met the conditions of its creditors for the long-delayed spinoff of Agere Systems, its subsidiary that makes integrated circuits and optical electronics equipment.

Lucent, once a Wall Street favorite, posted a net loss of $495 million, or 16 cents per share.

Excluding one-time items, the loss amounted 14 cents per share, meaning Lucent beat by 3 cents the 17 cent-per-share loss forecast by analysts surveyed by Thomson Financial/First Call. Those results excluded a 6-cent charge for a tax law change.

In the second quarter of 2001, Lucent posted a net loss of $3.7 billion or $1.09 per share.

Revenues fell 40 percent, to $3.52 billion from $5.9 billion in 2001's January-March quarter.

Shares of Lucent rose 12 cents to $4.41 in morning trading on the New York Stock Exchange.

Excluding the results from and the gain on the sale of Lucent's optical fiber business during its first quarter, Lucent posted a pro forma net loss of $631 million, or 20 cents per share, in the second quarter. That compares with a pro forma net loss of $1.4 billion, or 41 cents per share, in the year-earlier period.

"For the fifth consecutive quarter, we improved the bottom line," Lucent chief executive officer Patricia Russo, who took over on Jan. 7, told analysts during a morning conference call.

Lucent said its board of directors has approved the spinoff of Allentown, Pa.-based Agere, whose shares will be distributed to Lucent stockholders on June 1.

Lucent noted it has improved its gross profit margin to 23 percent, a nine-point improvement over the first quarter. Under the second phase of its massive restructuring program, the company said, it has cut annual expenses by $2 billion.

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