Lucent Technologies Inc. said Monday that its income and revenue for the quarter ended in June will be lower than analysts expected as the telecom gear maker was hurt by weak sales in the U.S. and China.
In a statement released after the stock market's close, Lucent said it expects revenues of about $2.04 billion for the quarter that ended June 30, a nearly 13 percent decline from the same period in 2005 and almost 5 percent less than this year's second quarter.
Shares of Lucent fell more than 6 percent at one point in after-hours trading following the announcement.
Murray Hill, N.J.-based Lucent, which has agreed to be acquired by the giant French equipment maker Alcatel SA in a $13.45 billion stock swap, said in a statement that sales for its fiscal third quarter totaled $2.04 billion.
That's well short of the $2.34 billion average estimate of analysts surveyed by Thomson First Call, and 13 percent lower than its sales in the same period a year ago. The company said that it expects to post earnings of 2 cents a share _ half the profit analysts were expecting and down from 7 cents a share a year earlier.
While Lucent had not announced projections for the quarter, in April the company said it expected full-year revenue to decline because licensing problems were causing a slowdown in cellular service construction in China and India.
The companies also said they are on track to complete their deal by year's end, and plan to shed 9,000 of their combined 88,000 employees.
Lucent shares closed at $2.34 Monday on the New York Stock Exchange, then dropped another 4 cents in late trading.
Lucent will release its third-quarter results on July 26.
On the Net:
Lucent Technologies: http://www.lucent.com
Alcatel SA: http://www.alcatel.com