Lucent's return to profitability has been all about improved productivity and a focus on next-gen market opportunities, said Patricia F. Russo, Chairman & CEO of Lucent Technologies, speaking at the Merrill Lynch Global Communications Investor Conference in New York. For instance, Lucent's gross margins have risen from 16% in Q1 2001 to 41% in Q1 2004 and quarterly operating expenses have been reduced by 78% over the same period. Russo observed that the "the tone in our industry has improved in recent months," and she expects the market will ultimately return to "pre-bubble" growth rates. The new momentum, said Russo, is attributable to a core set of next-gen opportunities:
- Metro optical networks -- including next-gen SONET/SDH, optical crossconnects, and metro DWDM
- Mobile high-speed data -- using spread spectrum technology, UMTS/W-CDMA, and 3G CDMA
- Broadband access -- encompassing DSL, FTTX, PON and wireless broadband
- VoIP -- including media gateways, softswitch, IP Centrex and feature servers. Russo said the very large embedded base of TDM provides a strategic advantage during the transition.
Russo also emphasized the importance of expanding the customer base. In its most recent quarter, non-U.S. revenue represented 40% of the company's total. Already, one-third of Lucent employees are located outside the U.S. (3,000 in China and 1,000 in India). http://www.lucent.com
