Lucent Technologies reported revenues of $2.56 billion for its fourth fiscal quarter, an increase of 25 percent sequentially and an increase of 5 percent from the year-ago quarter. Net income was $371 million or 7 cents per diluted share. These results compare with net income of $79 million or 2 cents per diluted share in the third quarter of fiscal 2006, and net income of $372 million or 7 cents per diluted share in the year-ago quarter.
"We are pleased to have ended what's been a challenging year with a strong quarter. As anticipated, we posted our highest quarterly revenue period for the year, driven primarily by mobility deployments in North America, and we recorded a gross margin of 44 percent. In addition to the rollout of our EV-DO Rev A and HSDPA solutions during the quarter, we also continued to convert IMS trials into contracts, announcing that KPN, The Netherlands' largest service provider, had selected Lucent's IP Multimedia Subsystem solution (IMS) to replace its legacy public switched-network. Lucent Worldwide Services, was also chosen as the prime integrator for the migration to KPN's All-IP network," said Lucent Technologies Chairman and CEO Patricia Russo.
Some highlights:
- Gross margin was 44 percent of revenues as compared with 41 percent in the third quarter of fiscal 2006 and 46 percent in the year-ago quarter.
- On a sequential basis, revenues in the United States increased 40 percent to $1.77 billion, and revenues outside the United States increased 1 percent to $789 million. Compared with the year-ago quarter, U.S. revenues increased by 17 percent and revenues outside the U.S. decreased by 14 percent.
- Mobility Access revenues were $1.277 billion, up 54% from Q3.
- Multimedia Network Solutions were $440 million, down 3% from Q3.
- Converged Core revenues were $157 million, up 7% from Q3.
- Service revenues were $644 million, up 11% from Q3.
- Lucent continues to expect the merger with Alcatel to close by the end of the calendar year.
