26-Sep-02 LUCENT TECHNOLOGIES, INC.
FINANCIAL  MODEL PROJECTIONS  (GAAP)
FISCAL YEARS ENDED
2002 2003 2004 2005 2006 2007 2008 2009 2010
TOTAL REVENUES $12,321 $9,857 $10,842 $11,927 $13,119 $14,431 $15,874 $17,462 $19,208
   % Change Y-O-Y   -20.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
COST OF SALES $10,769 $7,393 $6,939 $7,633 $8,396 $9,236 $10,160 $11,176 $12,293
   % Total Revenues 80.00% 75.00% 64.00% 64.00% 64.00% 64.00% 64.00% 64.00% 64.00%
GROSS PROFIT $1,552 $2,464 $3,903 $4,294 $4,723 $5,195 $5,715 $6,286 $6,915
   % Total Revenues 12.60% 25.00% 36.00% 36.00% 36.00% 36.00% 36.00% 36.00% 36.00%
R & D $2,310 $1,380 $1,301 $1,431 $1,574 $1,732 $1,905 $2,095 $2,305
   % Total Revenues 18.00% 14.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00%
SG&A $3,969 $1,971 $1,410 $1,550 $1,706 $1,876 $2,064 $2,270 $2,497
   % Total Revenues 30.00% 20.00% 13.00% 13.00% 13.00% 13.00% 13.00% 13.00% 13.00%
TOTAL OPERATING EXPENSES $6,279 $3,351 $2,711 $2,982 $3,280 $3,608 $3,969 $4,365 $4,802
   % Total Revenues 50.96% 34.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
RESTRUCTURING CHARGES, ETC $2,252 $0 $0 $0 $0 $0 $0 $0 $0
   % Total Revenues 18.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
OPERATING INCOME (LOSS) -$6,979 -$887 $1,193 $1,312 $1,443 $1,587 $1,746 $1,921 $2,113
   % Total Revenues -56.64% -9.00% 11.00% 11.00% 11.00% 11.00% 11.00% 11.00% 11.00%
INTEREST EXPENSE $382 $350 $350 $300 $300 $300 $300 $250 $250
   % Total Revenues 3.10% 3.55% 3.23% 2.52% 2.29% 2.08% 1.89% 1.43% 1.30%
OTHER INCOME (EXPENSE) $292 $0 $0 $0 $0 $0 $0 $0 $0
   % Total Revenues 2.37% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
INCOME BEFORE TAXES -$7,069 -$887 $1,193 $1,312 $1,443 $1,587 $1,746 $1,921 $2,113
   % Total Revenues -57.37% -9.00% 11.00% 11.00% 11.00% 11.00% 11.00% 11.00% 11.00%
TAXES $4,757 $0 $0 $0 $0 $0 $0 $0 $0
   Tax Rate 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
NET INCOME (LOSS) FROM OPERATIONS -$11,826 -$887 $1,193 $1,312 $1,443 $1,587 $1,746 $1,921 $2,113
INCOME (LOSS) DISCONTINUED OPERATIONS 73
   % Total Revenues 0.59% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
CONVERSION EXP REDEEMABLE P/S -$29 $0 $0 $0 $0 $0 $0 $0 $0
   % Total Revenues -0.24% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
PREFERRED DIVIDENDS & ACCRETION -$167 $250 $250 $250 $250 $0 $0 $0 $0
   % Total Revenues -1.36% 2.54% 2.31% 2.10% 1.91% 0.00% 0.00% 0.00% 0.00%
NET INCOME (LOSS) -$11,949 -$637 $1,443 $1,562 $1,693 $1,587 $1,746 $1,921 $2,113
SHARES O/S 3,427 3,600 4,700 4,800 4,900 5,000 5,100 5,200 5,300
 
EPS ($3.49) ($0.18) $0.31 $0.33 $0.35 $0.32 $0.34 $0.37 $0.40
EPS GROWTH USING ABOVE EPS #REF! -94.92% -273.44% 6.01% 6.19% -8.12% 7.84% 7.88% 7.92%
INPUT POSSIBLE PRICE / SHARE 0.75 1 2 2.75 3 3.25 3.75 4.5 5
MARKET CAP. USING ABOVE PRICE $2,570 $3,600 $9,400 $13,200 $14,700 $16,250 $19,125 $23,400 $26,500
POSSIBLE PRICE EARNINGS RATIO -0.22 -5.65 6.52 8.45 8.68 10.24 10.95 12.18 12.54
PEG RATIO USING ABOVE DATA #REF! 0.06 -0.02 1.41 1.40 -1.26 1.40 1.55 1.58
PRICE TO REVENUES USING ABOVE 0.21 0.37 0.87 1.11 1.12 1.13 1.20 1.34 1.38
PRICE / GROWTH FLOW RATIO (0.24) 10.01 3.31 4.25 4.34 4.70 5.03 5.60 #DIV/0!
   PGFR  cheap =   5
   PGFR normal = 11
   PGFR     high > 15