Lucent has issued a profits warning for its fiscal first quarter results blaming sluggish software sales and the failure to keep up with demand for its high-speed systems.
The networking giant yesterday warned that its earnings per share for the quarter would fall to between $0.36 and $0.39 compared with $0.48 a year ago. Analysts polled by First Call had forecasted earnings of $0.54.
Rich McGinn, Lucent chairman and chief executive, said: "We are clearly disappointed with the results for the quarter. We still expect our revenues to continue to grow three to five percentage points faster than the overallcommunications networking market. However, given the slow start for the year, we expect to be in the lower end of that range for fiscal 2000."
Lucent has been suffering from slow software sales because service providers now prefer to spread out purchases throughout the year rather than make them all during the calendar year end. Also the company said it failed to anticipate the high demand for OC-192 capability on its 80 channel systems which resulted in tight capacity and deployment issues.
However, Lucent promises good news in its second fiscal quarter as top line growth will be between 12 and 15 per cent above last year's level of $8.78 billion, while bottom line growth will be an increase of between 25 and 35 per cent over 1999's $0.17 share figure.
The strongest growth is expected in the second half of fiscal 2000 as the company's newest optical, network access and semiconductor products ramp up for full volume and deployment.
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