In a statement, Lucent Chairman and Chief Executive Henry Schacht blamed the losson softening sales to local exchange carriers and service providers as well as lower software sales.
As a guide, without loss-making companies on the Tokyo Stock Exchange, reported profits would be one-and-a-half times greater than they were in the past fiscal year.
He said he had asked Defence Secretary Des Browne for an urgent inquiry into the loss of the contract, following his department's concerns about KBR's float on the US stock exchange.