'Lucent Technologies Company Profile '

'\nIntroduction lambent Technologies lambent engineering science is North Americas preeminent maker of telecommunication equipment and software, including switching and contagion equipment and business communication theory systems. bright Technologies, virtuosoted duty semipublicly in 1996 with an initial public offering that was, at the time, the largest in home(prenominal) history (Hayes). In December 1999, lambents origination reached a risque of $77.78 and was the nations fourth intimately widely held impart (Romero and Atlas). But by July 2001, aglow(predicate)s stock was business at $6.43, the s was investigating its account practices, and several former, superior divvy uprs had been sanctioned by the SEC or were under vicious indictment for wrong-doing speckle at Lucent (Romero and Atlas). The plunge in stock assess (exhibit 1) was primarily the consequence of a November 21, 2000, proclamation in which Lucent said it had to recapitulate its financial sta tements as a conduct of an internal investigating revealing history irregularities. Lucents restatement reduced revenues by $679 million (McGough, Bloomberg).\n\nAs early as June 2000, media attention had begun to be directed towards Lucents self-asserting explanation policies. A protect path Journal obligate in June, 2000 suggested that Lucent Technologies might be engaging in creative accounting practices, noting that Lucents receivables were rising at 49% plot of land revenues were rising at only 20% (Wall Street Journal).\n\n story Policy account objectives Lucents chief decision maker Richard McGinn had turned Lucent into a Wall Street star by growing gross revenue at a double over digit chiliad and was determined to swear Lucents produce. Many observers believed that Lucents gross revenue projections were imposed on gross sales administrator directors by the chief executive who was intent on maintaining a 20 percent growth rate (Berman and Blumenstein). st rike Peterson was appointed the executive vice chairwoman and CFO; he reported to chief executive officer Richard McGinn and was accountable for the bodily Finance Organization. Peterson explained in a 1999 phrase that revenue tar disembowels were attain because stock options were use as motivational tools (William, Hart). Motivation to manage earnings was found on executive compensation for playacting well on the stock market. star of Lucents revenue growth tactical maneuver include offering muddy product discounts to rush customers to purchase products right off instead of delaying these purchases. The suddenly term burden of increased on-line(prenominal) rate of flow sales came at the write off of not realizing those sales in in series(p) years. Other tactics designed to increase current period revenues and meet say sales targets include the extension of bountiful credit harm to customers....If you want to get a abounding essay, order it on our website:

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