Lucent Technology Case

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Lucent Technologies Case

Yulissa T. Ortiz Salgado
March 30, 2013
Financial Reporting: Peeking Under the Financial Hood
Mrs. Darcie Sargent
The Lucent Technologies is a company that helps creating new revenue generating opportunities for customers through the communication service. We all know how useful and important communication services have become throughout the years. Lucent Technologies is compounded of three organizations around the products and they are: Integrated Network Solutions, Mobility Solutions and Lucent Worldwide Services.

Integrated Network Solutions also known as “INS” provides a service related to voice networking like voice messages, data and network management. Mobility offers software and wireless equipment to support radio like we do it on a car, and other electronic devices; however, all these equipment requires money to keep it running and to maintain it, so economy plays a very important place on this company like in every other.

It is mentioned in the reading that throughout the years the economy was affected and the revenues or earnings as well. In 2003, the balance sheet shows a balance of total assets of 15,911. Also, it shows a debt of 19,282. We see that there is no earning but a loss in the balance sheet. On 2003 the loss shown is 4,239. Besides the economy downs and cons we can see that one year after, on 2004 things started to get better financially talking. It is not a big difference, but we can see it is helping the company to hang in there. The asset’s balance shows a 16,963, 1,052 more than the year before. The liabilities went down from 19,282 to 18,342. Also, the loss has decrease, by going up from (4,239) to (1,379).

For this company would be hard to find investors because of the financial deficit they are confronting. The liabilities are way bigger than the earnings, because there are no earnings at all. If I were an investor, I would not put my money on a company that I see it’s not...