Better Times Ahead for Lucent?
Lucent's fiscal third-quarter results didn't shock or wow anyone but they provided some insight into where it and the telecom equipment market is going. On the positive side of the ledger, Lucent's restructuring efforts appear to be progressing so margins could improve if it can grow revenue. On the other hand, a 2% decline in wireless sales is disappointing. The drop is also troubling for other wireless players such as Nortel, Ericsson and Nokia because it may suggest the days of strong growth are no more. CIBC analyst Steve Kamman's take is that Lucent seems to ahead of Nortel in adapting to the “new marketing environment” - particularly in the IP and VOIP markets. He also takes another dig at Nortel by applauding Lucent's financial transparency. When Nortel posted its first-quarter results, Kamman was unhappy with the level of disclosure and the failure to break down each unit's performance.
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