Lucent issues Q1 profit warning

NEWS Lucent Technologies issued a profit warning late last night, triggering a $20 drop in its share price. The telecoms equipment provider predicted revised revenues of between $9.8bn and $9.9bn for the first quarter of 2000 - some $1bn below most analysts' expectations. The profit warning was issued on Thursday night after close of trade. Lucent's stock opened at $51 dollars as trading began Friday morning - down from above $70 the night before. Richard McGinn, Lucent chairman and CEO, said he is clearly disappointed by the figures, but still expected Lucent's revenues to grow quickly, relative to the networking market as a whole.
In a statement, the company blamed the poor figures on manufacturing problems, lower software revenues and falling profit margin, but said it will see revenue growth in the second quarter of 2000 as it ramps up its manufacturing operations.