(Associated Press via NewsEdge) Lucent said 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 US 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% decline from the same period in 2005 and almost 5% less than this year's second quarter.
Shares of Lucent fell more than 6% at one point in after-hours trading following the announcement.
Lucent, which has agreed to be acquired by the giant French equipment maker Alcatel 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% lower than its sales in the same period a year ago. The company said that it expects to post earnings of $0.02 a share, half the profit analysts were expecting.
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 will release its third-quarter results on July 26.
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