Lucent Technologies Inc. announced Friday it is projecting a drastic drop in fourth fiscal quarter revenues compared to its third quarter.

The Murray Hill, N.J.-based communications equipment maker blamed uncertain customer spending levels and continuing market softness in North America for the revenue shortfall. Lucent recorded revenues of US$2.9 billion in its third fiscal quarter, but expects fourth quarter revenues to drop by 20 to 25 per cent.

Lucent said it expects a loss per share of approximately US$0.45, because of the drop in revenue and customer financing default this month.

The company is developing a plan to reduce its quarterly earnings per share break even revenue to a range of US$2.5 billion to US$3 billion. This action should help the bottom line as it continues to work toward a return to profitability for the end of fiscal 2003, the company said.

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