When was lucent technologies created

Soon, however, good times began to turn bad. The problem was, Perano went on to say, that Lucent did not keep up with the times. It did not focus enough on Internet technology. At the time the article was printed, Lucent's stock had dropped more than 70 percent. A microscopic view of a tiny microphone on a computer chip being developed by researchers at Lucent Technologies's Bell Laboratories in Murray Hill, New Jersey.

The tiny pyramid-shaped microphone could lead to radio communicators the size of a wristwatch. When the company began to take a downturn in , Schact replaced McGinn and returned to serve as Lucent's temporary boss until a permanent replacement was found. Schact said in a Wall Street Journal article, "We are looking at as a transition and rebuilding year for Lucent.

It was time for a new leader. And we're going to restore this company to the luster it once had," Russo told the authors of a Wall Street Journal article on January 8, Lucent files an average of four patent applications each workday and has received twenty-eight thousand patents since Davisson in , for his experiments on the wave nature of electrons.

David Toung, a telecommunications equipment analyst, said in a January 8, , article in a Bergen County, New Jersey, newspaper, The Record, "I think this company will ride the telecom market and when the telecom market comes back, they will come back.

Toggle navigation. Photo by: V. Timeline Alexander Graham Bell receives the first telephone patent. Henry Schact is CEO. Russo becomes president and CEO of Lucent. Communications networking equipment: A communications network is a system of computers, terminals, and other devices that are interconnected.

Lucent makes the hardware and software that lets the parts of the system speak to each other, or exchange data. For example, counselors in a school use networked computers to share information about student schedules. Lucent develops the infrastructure, or the electronic system, that helps ISPs provide Internet service.

Optical network: Lucent develops optical networks, which carry digitized voice or data at very high speed on multiple channels of light. Optical networks are used in Internet, video, and multimedia technology. For instance, cable television is now distributed to homes through optical networks. One result is that you can get hundreds of TV channels to surf through. Wireless network: Lucent creates networks that allow wireless devices to talk to each other.

Wireless devices include cellular phones and pagers. Over 70, American jobs disappeared from the company. Large chunks were sold off at bargain prices for cash. Others were shut down to lessen an overwhelming negative cash flow. Retirees had to go back to work. Unexercised stock options became wallpaper. How could a large successful American company with such powerful fundamental research and technology disintegrate so quickly?

And how could Wall Street pundits not see it coming? It speaks to the contemporary American world, a harbinger of many other company futures. Perhaps the global future. No analysis to date fully describes the forces that drove Lucent to the brink. Retrospective interest focused on the Lucent accounting events, the financial reporting fiascoes, and executive actions during the last brief critical period, and not the longer-term underlying problems that guaranteed Lucent's ultimate demise.

Optical Illusions would have one believe it was the transmission product area failure to deliver the needed products. But that simply attempted to shift responsibility away from Wall Street and McGinn. If there are lessons to be learned, it is that America is changing for the worse, and is losing its ability to cultivate talented, dedicated engineers and scientists. It is losing its nurturing, supportive managers, and the corporate cultures that inspire true invention and innovation.

Companies can no longer afford the luxury of big science and long term research and development projects. Conditions are progressively deteriorated over time. With every transition, the changes become more destructive. Corporate executive greed, incompetence, inexperience and ineffectiveness. But there is lots of money to be made by Wall Street and Corporate Executives.

These bubbles define Wall Street epochs. The commercial real estate bubble resulted in the Resolution Trust Corporation Savings and Loan bail-out that cost taxpayers hundreds of billions of dollars. Clinton era legislation deregulating banking and investment fueled the subsequent mortgage bubble.

Subprime only contributed to the problem slightly. They bank theirs up front and leave the investors to take the hit. It simply signals the time to take a break to regroup, give investors a chance to forget, rebuild investor trust, and begin looking for the next big play. For all the investors and taxpayers that suffer financial loss, Wall Street is fine with the outcome.

Wall Street leads the greed game, and corporate executives follow. They know to bank their millions and billions before the curtain falls.

Warren Buffet excepted, anachronism that he is. Those executives that opt out of the greed game or produce a bad quarter are punished mightily. Wall Street blinds itself to the truth to keep the play going, when in more rational circumstances they would disclose legitimate concerns. Instead, Wall Street continues to encourage unrealistic expectations.

Corporate executives bend the truth accordingly to meet those expectations. But even worse, executives will use accounting games to portray favorable quarterly results, even when the deception is not sustainable. Every quarter that the numbers are met, Wall Street smiles on their stock options, and they can bank their bonuses. Once in a while someone is made a scapegoat after the fact.

But it took people decades to complain enough to make his conduct an issue. Long after he had banked his millions. Entirely new corporations and innovations were going to knock out conventional businesses, and replace them with hard-charging, e-industry giants.

All the while, Wall Street was peddling e-commerce companies with negative balance sheets that had no real chance of ever succeeding.

A few made it. A lot more did not. Wall Street loved the newly spun-off Lucent as the best play going.

It was the best of both worlds. The timing was right. Lucent was nearing the end of the telecom digital technology cycle when analog was being replaced with digital, and copper with fiber. Wireline was beginning to be replaced with wireless, and circuit with packet.

Wall Street was rife with excitement. Money was flowing in fast, and the hot stocks were quickly being bid up. There was only one problem: CLECs had no chance of succeeding. So intoxicated with the proceeds from helping investors dump billions into these possibilities, Wall Street was unwilling to responsibly articulate the rational likely outcome assessments. Well beyond the time it should have been obvious that the CLECs were flaming out, Wall Street was still singing their praises.

Stodgy old regulated Bell Operating Companies were boring. Headquartered in Murray Hill, New Jersey, and formed in , Bell Laboratories has a long history of innovations, from synchronizing sound and film in the s to inventing the transistor in the s and the laser in the s.

In Lucent introduced products that originated in Bell Labs, and researchers there claimed more than 1, patents during the year--their highest number of patents ever. Lucent has complemented its Bell Labs innovations by acquiring numerous high-tech companies. In the company realigned its businesses into four main groups, plus Bell Labs, which supports the other Lucent units by providing basic research and product and service development.

Service Provider Networks included optical networking, switching and access solutions, wireless networks, and communications software, plus business focused on serving cable TV operators and other service providers. Enterprise Networks was responsible for voice and data solutions for business and government enterprises and included Business Communications Systems and Government Solutions.

NetCare Professional Services offered services for the life cycle of a network, including planning, design, implementation, operations, maintenance, education, and software.

Microelectronics and Communications Technologies consisted of the company's microelectronic business, network products, new ventures, and intellectual property. Its products include integrated circuits, optoelectronic components, power systems, optical fiber, cable, and connectivity solutions. The second company would be Global Information Solutions, which would make automated teller machines, bar-code scanners, and other computerized systems.

The third would be Lucent Technologies, a company focused on network equipment, switching devices, and business communications hardware. Lucent was incorporated in Delaware in November Lucent formed its New Ventures Group in to nurture small companies, make venture capital investments, and spin out entrepreneurial firms that could later go public. The New Ventures Group was instrumental in determining which Bell Labs inventions became marketable products.

Between and the end of Lucent New Ventures created 11 companies and created syndicates of investors to spread the risk involved. At the beginning of Lucent said it planned to launch at least five new companies each year. Until Schacht's retirement, McGinn served as number two under Schacht. Under McGinn, Lucent began a series of acquisitions and mergers that continued through McGinn also sold off some of Lucent's businesses and refocused the semiconductor unit on digital signal processors instead of commodity chips.

The venture was formed to create a worldwide provider of personal communications products. A year later Lucent and Philips announced their intention to end the venture, which was terminated in late