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Lucent sees 2002 profit
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August 23, 2001: 1:18 p.m. ET
Embattled telecom equipment maker sees positive cash flow within 6 months
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NEW YORK (CNNfn) - Beleaguered telecommunications equipment maker Lucent Technologies Inc. reaffirmed Thursday its expectations of profitability and positive cash flow in 2002, and said it has the funding it needs to complete its restructuring plans.
Lucent executives, speaking in a conference call with analysts and investors, said they expect Lucent to return to profitability and positive cash flow in the fiscal year ending Sept. 30 2002, and attain industry-standard growth rates in fiscal 2003.
The company said its expectations are based on revenue remaining flat in 2002, though it said it can't predict how the market will shrink or expand.
Murray Hill, N.J.-based Lucent, which plans to cut its work force to little more than half the 106,000 employees it had at the start of the year, said restructuring efforts remain on track, and it has the financing in place to complete planned restructuring and fund operations.
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Lucent has suffered recently from a series of manufacturing and product-development missteps, management turnover, and intense competition in a slowing economy.
Lucent (LU: up $0.03 to $6.71, Research, Estimates), which failed in its $23.5 billion merger attempt with French networking firm Alcatel SA, has seen its shares plummet 89 percent from their 52-week high of $45.18.
On July 24, Lucent reported a wider-than-expected loss for its third quarter and said it planned to cut another 20,000 jobs after cutting more than 30,000 jobs earlier in the year. Lucent also sold its fiber-optic unit to Furukawa Electric Co. of Japan and Corning Inc. (GLW: up $0.32 to $14.58, Research, Estimates) for $2.75 billion.
The company still plans to spin off its Agere Systems (AGR.A: up $0.01 to $4.53, Research, Estimates) unit, which makes computer chips, within six months, and said it will achieve positive cash flow before then. The company must be cash-flow positive for one full quarter before the spinoff, according to agreements with its bankers. Lucent said it has raised the $5 billion necessary for the spinoff. 
-- from staff and wire reports
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Lucent
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