Lucent’s Software Chief Quits Over Dispute on Strategy

Lucent Technologies Inc. said Kenan Sahin, a group president and head of software development, quit the biggest maker of phone equipment after a disagreement with management over corporate strategy.

Sahin, 59, joined Lucent in February 1999 when it acquired the maker of billing software he founded 17 years earlier. He was among the company’s top 20 executives and reported to Executive Vice President Bob Holder. Sahin resigned last week.

As part of his efforts to revive Lucent from a profit tailspin, Chief Executive Henry Schacht is splitting up software development into applications, such as billing, and network management. Sahin, president of Lucent’s Software Products Group, didn’t back the plan, company spokesman Bill Price said.

“The strategy for that part of the business is changing,” Price said. “Kenan didn’t align with our approach, so we decided to move forward separately.”

Sahin is the second executive to quit in a week. Lucent’s head of wireless equipment for European networks, John Hughes, left Dec. 7 to “pursue new career opportunities,” Price said.

Hughes was appointed president of Lucent’s GSM/UMTS division in Britain in September 1999. The company has since fallen behind Ericsson and Nortel Networks Corp. in winning contracts for high-speed networks based on the universal mobile telecommunications system, or UMTS, standard.

“As we continue to go through the restructuring of our business and streamlining of some of our operations, some personnel changes and departures are inevitable,” Price said.

Sahin, who received millions of Lucent shares to sell Kenan Systems Corp., making him a billionaire, is the latest executive to quit Lucent as its stock tumbled.

The shares have fallen 74% this year as Lucent cut four quarters of profit estimates, ousted CEO Richard McGinn and restated sales and profit in its fourth quarter.

Curt Sanford and Mukesh Chatter, both of whom joined the Murray Hill, N.J.-based company in acquisitions last year, stayed less than 12 months and quit earlier this year.

Sahin, who received a doctorate from Massachusetts Institute of Technology in 1969, was considered a star at Lucent.

Lucent shares rose $1.25 to close at $19.94 on the New York Stock Exchange.