Lucent Technologies

Background of Lucent Technologies In 1996, AT & T decided to divide it into three different companies. These new companies are the new AT & T, NCR, and Lucent Technologies. Lucent Technologies is one of the leading designers, developers, and manufacturers of telecommunications systems, software, and products. They became Fortune 40 companies. Lucent Technologies has established a local network, a corporate phone system, and a consumer phone that can access the global network 2 Lucent Technologies launched initial public offering 3 AT & T announced 82% of its shares I own it. employee

Lucent Technologies is a leading manufacturer in North America that manufactures telecommunications equipment and software, including switching and transmission equipment, commercial communication systems and so on. Lucent Technologies started a public offering transaction in 1996. This is the first public offering that was the largest public offering in the country's history (Hayes). In December 1999, the stock price of Lucent reached the highest value of 77.78 dollars, becoming the fourth largest stock in the United States (Romero and Atlas). However, as of July 2001, Lucent shares traded at $ 6.43, the US Securities and Exchange Commission is investigating its accounting practices and some former senior executives are approved by the US Securities and Exchange Commission It was. Ras) was criminal prosecuted for his misconduct. ) The plummeting stock price (Figure 1) is mainly the result published on November 21, 2000. Lucent said it is necessary to restore the financial statements for internal investigation showing accounting irregularities.

As early as June 2000, media began to focus on Lucent's aggressive accounting policy. The article in the June 2000 issue of The Wall Street Journal shows that Lucent Technologies is likely to participate in creative accounting practices, Lucent's accounts receivable growth rate is 49%, revenues are only 20% It did not increase (Wall Street Journal). Lucent 's Chief Executive Officer Richard McKinn made Lucent a star on Wall Street by growing sales at a double - digit growth rate. I am determined to maintain Lucent's growth. Many observers believe that Lucent's sales forecast was imposed on sales executives (Bellman and Blumenstein) by a CEO who is responsible for maintaining a 20% growth rate. Don Peterson is appointed vice president and chief financial officer, and reports directly to CEO Richard McGinn and is in charge of the company's financial organization.