Lucent Technologies Management?
2. Evaluate the asset, debt and equity structure of Lucent Technologies, as well as trends and changes in the balance común.4 size. What other financial and non financial investors and creditors to make investment and lending decisions for Lucent Technologies? Abstract We design and deliver systems, software and services for next-generation communications networks. Backed by Bell Labs research and development, we use our strengths in mobility, optical, access, data and voice networking technologies, as well as services, to create new revenue-generating opportunities for our customers Then they quickly deploy and better manage their networks. Our customers include communications service providers, governments and enterprises worldwide. We have three segments organized around products and services they sell. The reportable segments are Integrated Network Solutions (INS), Mobility Solutions (“Mobility”) and Lucent Worldwide Services (“Services”). LSI offers a broad range of software and wireline equipment related to voice networking (primarily consisting of switching products, which are sometimes referred to as convergence solutions, and voice messaging products), data and network management (consisting from access and data network equipment and operating software) and optical networks. Mobility provides software and wireless equipment to provide radio access and core networks. Services provides deployment, maintenance, professional and managed services to support our range of products, and multi-vendor networks. Beginning in fiscal year 2001, the global telecommunications market deteriorated following a fall in a competitive market for local telephone company and a significant reduction in capital spending by established service providers. This trend intensified during fiscal 2002 and continued during the year 2003. The reasons for the deteriorating market conditions, including general economic slowdown, network overcapacity, customer bankruptcies, network build-out delays and limited availability of capital. We believe that the market for telecommunications equipment has stabilized and is beginning to develop in some areas. The increasing demands of businesses and consumers for additional services tailored to their needs is creating the need for a new convergence of networks, technologies and applications. Requirements 1. Using Lucent Technologies audited results for September 30, 2004 and 2003 to develop common size balance. 2. Evaluate the asset, debt and capital structure of Lucent Technologies, as well as trends and changes found in the CCA size. 3. What are the concerns of investors and creditors have based solely on this information? 4. What other financial and non financial creditors and investors should make investment decisions and loans for technology from Lucent? Lucent Technologies AND ITS SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions, except per share amounts) September 30 September 30, 2004 2003 Assets Cash and cash equivalents $ 3,379 $ 3,821 Marketable securities 858 686 Receivables 1,359 1,511 Inventories 822 632 Other current assets 1213 1813 7863 8231 Total Current Assets Marketable securities 636 – Property and equipment, net 1376 5358 1593 pension expense paid in advance for 4659 Goodwill and other acquired intangible assets, net 434 188 Other assets 928 1.608 $ 16.963 Total assets $ 15,911 Liabilities Accounts payable $ 872 $ 1,072 Payroll and benefits liabilities 1.080 1.232 Debt in a year 1389 2361 Other current liabilities Total current liabilities 2393 4934 4466 after the pension and benefit liabilities subsequent to 4669 1874 4881 2494 pension liabilities of the long-term debt 4439 4837 Obligation to subsidiary trust issuing preferred shares 1152 1132 1594 1152 Other liabilities 18,342 Total liabilities 19,282 Commitments and Contingencies 8. 00% convertible redeemable preferred shares – the value of the deficit 868 shareholders of preferred shares by $ 1. 00 per share, shares authorized: 250; issued and outstanding: none – - Common stock par value $ -. 01 per share, shares authorized: 10,000; 4396 and 4395 shares issued and outstanding at September 30, 2004 and 4170 and in 4169 issued the shares outstanding at September 30, 2003 Contributed surplus 44 42 Accumulated deficit 23.005 22.252 (20.793 ) (22,795) Accumulated other comprehensive (3635) (3738) Total shareholders’ deficit (1379) (4239) Total liabilities, redeemable convertible preferred stock and shareholders’ deficit ‘$ 16.963 $ 15.911
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