Lucent Technologies reported first quarter revenues of $2.34 billion in the quarter, a decrease of 3% sequentially and an increase of 3% from the year-ago quarter. Net income was $174 million or 4 cents per diluted share. These results compare with net income of $1.21 billion, or 23 cents per diluted share, in the fourth quarter of fiscal 2004 and net income of $349 million, or 7 cents per diluted share, in the year-ago quarter.
"The dynamic nature of today's telecom market continues to present distinct opportunities and challenges to network equipment and service providers," said Lucent Technologies Chairman and CEO Patricia Russo. She cited strong results in Lucent's mobility business, including recent contracts with Sprint and Cingular, but said the wireline market "remains a challenge in the near term."
- Lucent is forecasting its annual revenues for fiscal 2005 to increase on a percentage basis in the mid-single digits -- at or above the market growth rate.
- Gross margin for the first quarter of fiscal 2005 was 42% of revenues as compared with 41% in both the fourth quarter of fiscal 2004 and the year-ago quarter.
- Operating expenses for the first quarter of fiscal 2005 were $665 million as compared with $691 million for the fourth quarter of fiscal 2004 and $648 million for the year-ago quarter.
- As of Dec. 31, 2004, Lucent had about $4.6 billion in cash and marketable securities, which represents a decrease of approximately $300 million from the quarter ended Sept. 30, 2004. The decrease was primarily driven by the payment of the company's fiscal 2004 employee incentive awards.
- On a sequential basis, revenues in the U.S. were essentially flat at $1.45 billion, and revenues outside the U.S. decreased 8% to $885 million.
- Mobility revenues for the first quarter of fiscal 2005 were $1.15 billion, essentially flat sequentially and an increase of 19% compared with the year-ago quarter.
- INS revenues for the first quarter of fiscal 2005 were $645 million, a decrease of 7% sequentially and a decrease of 18% compared with the year-ago quarter.
- Lucent Worldwide Services (LWS) revenues for the first quarter of fiscal 2005 were $520 million, an increase of 1% sequentially and an increase of 12% compared with the year-ago quarter.
