Monday, April 24, 2006

Lucent Posts revenues of $2.14 billion

Lucent Technologies reported net income (GAAP) of $181 million, or 4 cents per diluted share, compared with a net loss of $104 million, or 2 cents per share, in the first quarter of fiscal 2006, and net income of $267 million, or 6 cents per diluted share, in the year-ago quarter.

The company reported revenues of $2.14 billion in the quarter, an increase of 4 percent sequentially and a decrease of 8 percent from the year-ago quarter. The company's revenues were $2.05 billion in the first quarter of fiscal 2006 and $2.34 billion in the year-ago quarter.

Gross margin was 43 percent and operating margin was 12 percent.

On a sequential basis, revenues in the United States increased 11 percent to $1.5 billion, and revenues outside the United States decreased 9 percent to $642 million. Compared with the year-ago quarter, U.S. revenues increased by 3 percent and revenues outside the United States decreased by 28 percent, with approximately two-thirds of that decline related to the aforementioned challenges in China and India.

"Although our North American revenues for the first half of fiscal 2006 are slightly below the year-ago period, the fundamentals of the business remain solid. We expect wireless deployments in North America to build through the remainder of the year, with an acceleration in the fourth fiscal quarter around UMTS and EVDO Rev A deployments," said Lucent Technologies Chairman and CEO Patricia Russo. "We continue to expect growth across our portfolio in the Caribbean and Latin America region during the second half of the fiscal year, and we expect a ramp-up in network transformation projects in Europe as well. Offsetting these favorable trends, however, we expect a $500 million revenue decline in China and India for this fiscal year, driven primarily by declines in PHS sales and delays in the issuance of 3G licenses in China, and to a lesser extent our selective participation in highly competitive market opportunities in India," concluded Russo.

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