Lucent's return to profitability delayed

Lucent Technologies will not be profitable in 2003, the company has warned.

The telecommunications equipment manufacturer now expected to return to profitability in fiscal year 2004, it said in a statement.

It warned that it expected its third-quarter results, to be announced on July 23, to reflect an 18 per cent drop from the $US2.4 billion in revenue the company reported in the second quarter. That would place third-quarter revenue at just under $US2 billion, or about $US1 billion less than the $US2.95 billion it reported for the third quarter of 2002.

Lucent blamed poor performance in its wireless networking products for the loss.

The company saw continued uncertainty in the market, particularly for its mobility division, the statement said.

Only a modest amount of cash was used in the quarter, Lucent said. It expected to end the quarter with $4.9 billion in cash and short-term investments, it said.