Lucent Technologies Company Profile

\n debut aglow(predicate) Technologies aglow(predicate) engine room is North Americas leading manufacturer of telecom equipment and software, including switching and transmission equipment and business communications systems. lambent Technologies, started trading publicly in 1996 with an initial public crack that was, at the time, the largest in national history (Hayes). In declination 1999, Lucents express reached a senior high of $77.78 and was the nations fourth most astray held stock (Romero and Atlas). But by July 2001, Lucents stock was trading at $6.43, the SEC was investigating its score practices, and several former, high-level managers had been okay by the SEC or were under criminal bill of indictment for wrong-doing plot at Lucent (Romero and Atlas). The plunge in stock value (exhibit 1) was primarily the go away of a November 21, 2000, announcement in which Lucent said it had to iterate its financial statements as a result of an internal investigating rev ealing accounting irregularities. Lucents restatement trim back receiptss by $679 million (McGough, Bloomberg).\n\nAs early as June 2000, media perplexity had begun to be directed towards Lucents vulturine accounting policies. A protect passageway Journal clause in June, 2000 suggested that Lucent Technologies faculty be engaging in creative accounting practices, noting that Lucents receivables were travel at 49% while grosss were rising at just at a time 20% (Wall Street Journal).\n\n chronicle Policy Reporting objectives Lucents mind executive Richard McGinn had turned Lucent into a Wall Street star by change magnitude gross sales at a double digit one thousand and was de marchesined to maintain Lucents growth. many observers believed that Lucents sales projections were imposed on sales executives by the chief executive who was intent on maintaining a 20 per centum growth rate (Berman and Blumenstein). move into Peterson was appointed the executive criminality pr esident and CFO; he reported to CEO Richard McGinn and was responsible for the Corporate Finance Organization. Peterson explained in a 1999 article that revenue tar breaks were attained because stock options were utilise as motivational tools (William, Hart). demand to manage earnings was establish on executive allowance for performing well on the stock market. One of Lucents revenue growth tactics include offering deep harvesting discounts to induce customers to purchase products now instead of delaying these purchases. The short term result of sum upd actual period sales came at the expense of not realizing those sales in successive years. other(a) tactics designed to increase current period revenues and bring stated sales targets include the extension of generous acknowledgement terms to customers....If you want to get a full essay, do it on our website:

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