Lucent did Nortel no favours today when it suggested a slow ramp-up in customer spending will prompt it to lower its fiscal 2006 guidance to "down year over year", compared with earlier guidance of "flat to up in the low single digits". Lucent blamed delays with 3G in China and modest rev. A and UMTS sales until September. Desjardins analyst Paul Howbold said given Nortel has many of the same customers as Lucent, Nortel first-half results would be affected as well.
Lucent Lowers 2006 Expectations
Lucent did Nortel no favours today when it suggested a slow ramp-up in customer spending will prompt it to lower its fiscal 2006 guidance to "down year over year", compared with earlier guidance of "flat to up in the low single digits". Lucent blamed delays with 3G in China and modest rev. A and UMTS sales until September. Desjardins analyst Paul Howbold said given Nortel has many of the same customers as Lucent, Nortel first-half results would be affected as well.