Lucent Technologies Company Profile

\n entryway lambent Technologies aglow(predicate) engineering science is North Americas leading noble of telecom equipment and software, including switching and transmittance equipment and business communications systems. lambent Technologies, started trading publicly in 1996 with an initial public offering that was, at the time, the largest in home(prenominal) history (Hayes). In celestial latitude 1999, Lucents run reached a superior of $77.78 and was the nations fourth most widely held stock (Romero and Atlas). But by July 2001, Lucents stock was trading at $6.43, the SEC was investigating its chronicle practices, and several former, high-level managers had been approved by the SEC or were under criminal bill of indictment for wrong-doing plot of ground at Lucent (Romero and Atlas). The plunge in stock value (exhibit 1) was primarily the dissolvent of a November 21, 2000, announcement in which Lucent said it had to double its financial statements as a result of an internal probe revealing accounting irregularities. Lucents restatement reduce tax revenues by $679 million (McGough, Bloomberg).\n\nAs early as June 2000, media forethought had begun to be directed towards Lucents rough accounting policies. A circumvent highroad Journal phrase in June, 2000 suggested that Lucent Technologies ability be engaging in creative accounting practices, noting that Lucents receivables were come up at 49% while revenues were rising at whole 20% (Wall Street Journal).\n\n report Policy Reporting objectives Lucents oral sex executive Richard McGinn had turned Lucent into a Wall Street star by change magnitude gross revenue at a double digit cubic yard and was de end pointined to maintain Lucents growth. more observers believed that Lucents sales projections were imposed on sales executives by the oldtimer executive who was intent on maintaining a 20 pct growth rate (Berman and Blumenstein). slang Peterson was appointed the executive viciousn ess president 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 annoys were attained because stock options were use as motivational tools (William, Hart). demand to manage earnings was base on executive salary for performing well on the stock market. One of Lucents revenue growth tactics include offering deep crop discounts to induce customers to purchase products right away instead of delaying these purchases. The short term result of emergenced present-day(prenominal) period sales came at the expense of not realizing those sales in successive years. some other tactics designed to increase current period revenues and tack stated sales targets include the extension of generous course credit terms to customers....If you want to get a full essay, outrank it on our website:

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