Henry Schacht Quotations

Our team is working around the clock to restore an American icon.

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.

This is a very confusing time because all of our customers are seeing 15- to 20-percent cuts,

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,

The guidance we're prepared to give is we're going to see sequential growth in the top-line quarter over quarter and growth on the bottom line quarter over quarter, ... We need to perform. Performance is our mantra, and out here we are working hard to perform.

For us to go ahead and try to predict top line, we're just not prepared to go there,

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.

We wanted to make this public as soon as we discovered the issue, ... I have asked our outside auditor and outside counsel to assist us in doing a complete review of this and any related issues.

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,

Lucent got off track because we tried to grow our company faster than, in hindsight, we were able to,