Lucent poses loss as sales take nosedive

Lucent Technologies, as anticipated, posted a loss in the third quarter as sales took another nosedive.

The company warned last week of lower-than-expected sales. It also retracted its vow to return to profitability by the end of fiscal 2003 and is now aiming for fiscal 2004.

In the quarter ended June 30, Murray Hill, N.J.-based Lucent said it lost $254m (€221.3m), or 7 cents a share, compared with a loss of $8.03bn (€7bn), or $2.35 a share, a year ago.

Sales fell 18% to $1.96bn (€1.7bn) from $2.4bn (€2.1bn) in the prior quarter, its lowest since the company went public in the mid-1990s.

The company did not issue a financial forecast, continuing a recent practice.

Lucent hasn't made money in more than three years.

The company has blamed lower spending in North America and a delay in the acceptance of a major networking-supply contract.

On Tuesday, Lucent offered some good news -a $1bn (€870,000) multi-year deal to help Sprint upgrade its wireless network.

Lucent has said it will further cut costs to lower the point at which it can break even.

Chief Financial Officer Frank D'Amelio said in a statement: "We clearly have more work to do given the continuing market uncertainty, and we are developing plans to lower our breakeven so that we can return to profitability as soon as possible in fiscal 2004."