Lucent Technologies reported quarterly net income of $372 million or 7 cents per diluted share on revenues of $2.34 billion. This compares with net income of $267 million, or 6 cents per diluted share, in previous quarter or 8 cents per diluted share in the year-ago quarter. Revenue was essentially flat sequentially and an increase of 7%from the year-ago quarter. The third quarter's earnings per share included a positive impact of $127 million, or about 2 cents per diluted share, primarily due to the favorable impact of tax items and recoveries of bad debt and customer financing.
"This quarter, we continued to deliver steady, profitable results driven primarily by our strength in 3G mobile networks and growth in our Services business," said Lucent Technologies Chairman and CEO Patricia Russo. "We believe our wireline business is stabilizing, and we continue to strengthen our position in the next-generation of IMS-based networks with more customer trials and developments.
Some highlights:
- Gross margin was 45% of revenues as compared with 42% in the previous quarter of fiscal 2005 and 43%in the year-ago quarter.
- Operating expenses for the third quarter of fiscal 2005 were $681 million as compared with $707 million for the second quarter of fiscal 2005 and $598 million for the year-ago quarter.
- As of June 30, 2005, Lucent had about $4.1 billion in cash and marketable securities, flat sequentially from about $4.1 billion in the quarter ended March 31, 2005. During the quarter, Lucent used $318 million in cash for debt repurchases.
- On a sequential basis, revenues in the United States increased $74 million, or 5%, and revenues outside the United States decreased $69 million, or 8%.
- Mobility revenues for the quarter were $1.17 billion, a decrease of 2% sequentially and an increase of 14% compared with the year-ago quarter.
- INS revenues for the quarter were $592 million, essentially flat sequentially and a decrease of 12% compared with the year-ago quarter.
- LUCENT WORLDWIDE SERVICES (LWS) revenues for the quarter were $538 million, an increase of 8% sequentially and an increase of 14% compared with the year-ago quarter.
