Henry Schacht Fiscal Quotations

Lucent will continue to review its internal processes throughout fiscal year 2001, which may result in additional cost structure improvements and associated business restructuring charges as it moves from a multi-divisional company to one with a single focus on the service provider market,

We are clearly disappointed in our results for fiscal year 2000. We are looking at fiscal year 2001 as a transition and rebuilding year for Lucent. Lucent remains a company with world-class products, people and knowledge of networks, and we are fortunate to compete in one of the world's leading growth markets.

We are clearly disappointed in our results for fiscal year 2000, ... We are looking at fiscal year 2001 as a transition and rebuilding year for Lucent.  Lucent remains a company with world-class products, people and knowledge of networks, and we are fortunate to compete in one of the world's leading growth markets.

We believe our revenues will improve in the second fiscal quarter of 2002. In fact, we are seeing early signs of increased customer spending in some segments of our business for that quarter, ... This isn't surprising because even our customers' reduced forecasts for calendar 2002 are still higher than their rate of spending in the current quarter.

Despite the short-term weakness in the market, we believe that our Phase II restructuring actions will drive our return to profitability and positive cash flow in fiscal year 2002,

As we've said, fiscal year 2001 is a transition and rebuilding year for Lucent,

It will take the rest of fiscal 2001 to get back on track, ... In the second half of the year the significantly reduced expense levels will take hold.