CS First Boston Is Negative on Lucent

Analyst James Parmalee thinks the exit of CFO Deborah Hopkins has the potential to trigger additional departures

CS First Boston says the departure of Lucent Technology 's LU CFO, Deborah Hopkins, is a negative for the company.

Analyst James Parmalee says CFO-designate Frank D'Amelio has extensive knowledge of the company's operations, as he served as CFO of Lucent's Network Systems business from 1996 to 1998. However, Parmalee thinks Hopkins' departure must be viewed as negative given the importance of creating management continuity in the context of the company's ongoing operational difficulties. He thinks Hopkins' leaving has the potential to trigger additional departures as she had recruited several individuals to senior roles in finance.

Parmalee sees a $1.31 fiscal 2001 (Sept.) loss, and a $0.19 fiscal 2002 loss. He maintains his buy rating on the shares.

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