Lucent Expects Loss, Cites Purchase of Octel

Lucent Technologies Inc. said it expects to take a fiscal-fourth-quarter charge of $950 million, or about $1.47 a share, for its Octel Communications Corp. purchase, which will result in a loss. Lucent reported in a Securities and Exchange Commission filing that the charge is related to research and development. The company also said it will amortize about $400 million of goodwill and acquired technology over a maximum of seven years. Lucent, which makes equipment for digital phone networks, is expected to earn 50 cents a share, before the charge, in the quarter ending Sept. 30, based on the average estimate of 13 analysts polled by IBES International Inc. On July 17, Lucent said it would buy Octel, the top voicemail company, for $31 a share, or $1.8 billion in cash. Lucent shares fell 94 cents to close at $82.56 on the New York Stock Exchange.