Business briefs

25 Oct 2002

Including financial results from Lucent, Lumenis and Newport.

•  Sales at Lucent Technologies are continuing to fall. For the three months ended 30 September 2002, the US maker of telecom equipment recorded pro forma revenues of USD 2.28 billion, down 23% on the preceding quarter. Net loss for the period was USD 2.81 billion. Lucent says that while it does not expect any improvement in the market in 2003 it is working towards a cost structure that will allow it to return to profitability.

•  Lumenis, the Israeli medical laser firm, has reported revenues of USD 90 million for the third quarter of 2002. The news will disappoint investors who were expecting a value of between USD 93 to USD 97 million. Cash flow for the period was negative to the sum of USD 3 million. On a more positive note, the company created strategic alliances with Ellex Medical of Australia and Moria SA of France.

•  Microdisplay manufacturer Three-Five Systems, US, has won a deal to supply products for the F-35 Joint Strike Fighter program. Six of the company's Brillian devices will form a 20-inch by 8-inch smart color display to provide information to the fighter pilots.

•  Following a third-quarter loss of almost USD 60 million, US-based Newport is to accelerate its cost-reduction plans. The company now plans to close, rather than down-size, its fiber-optic operations in Santa Ana. Job losses will now total more than 300, up from the 225-275 estimated in August. Newport president and CEO Robert Deuster said: "The recovery in the semiconductor market appears to have stalled, and the fiber-optic communications market continues to be depressed.

•  Optical networking specialist Corvis, US, reported revenues of just USD 1.4 million in its third quarter, down almost 95% on the same quarter last year. The net loss for the period was USD 127 million. The only money coming into the Corvis coffers was from existing service contracts with France Telecom and Broadwing Communications. The company, which says it has around USD 500 million in cash reserves, now intends to cut costs further by laying off 164 employees in France and outsourcing the manufacture of its products to Celestica.