Lucent Technologies is a company who delivers the systems, software, and services that drive next-generation communications networks (Fraser & Ormiston, 2007). Lucent Technologies, who is backed by Bell Labs, use their strengths to create new opportunities for their customers, who include communication service providers, governments, and worldwide enterprises, to generate revenue (Fraser & Ormiston, 2007). This paper will address the financial statements of Lucent Technologies, any concerns that investors and creditors may have, and any additional information that may be valuable to investors and creditors.
Lucent Technologies has three segments that deliver their product and services. The first segment is Integrated Network Solutions (INS). This segment deals with voice networking, data and network management, and optical networking. The next segment, which supports radio access and core networks, is Mobility Solution (Mobility). The third segment is Lucent Worldwide Services (Services), which provides deployment, maintenance, and professional and managed services in support in the the products that the company offers as well as multi-vendor networks (Fraser & Ormiston, 2007).
Lucent Technologies had a decrease in capital spending between 2001 and 2003. This decrease could be connected to the deteriorating market. But things seemed to turn around in 2004, which appears to have been a profitable year for the company, leaving them with around $350,000 more in assets then they had at the same time the previous year. The balance sheet also showed that Lucent Technologies had an increase in other current assets, inventories, and marketable securities.
When looking at the balance sheet for liabilities, it appears that that the company is in a better debt position in 2004 then it was in 2003. As of September 30, 2004, the company is showing $900,000 less in liabilities then it showed at the same time in 2003. This decrease...