PARIS (07/20/2000) - Lucent Technologies Inc. narrowly beat analysts' expectations in the third quarter, with pro forma earnings of US$1.007 billion, up 30 percent compared to a year ago. The company also revealed plans to spin off its fast-growing microelectronics business.
The earnings, equivalent to 30 cents per share, were a shade higher than those expected by a panel of 19 analysts polled by First Call/Thomson Financial, who had predicted earnings of 29 cents per share.
Pro forma revenue for the quarter from continuing operations increased 20 percent to $8.713 billion, compared to $7.245 billion a year ago. The pro forma figures exclude the enterprise networks business expected to be spun off, the consumer products business, amortization of goodwill and acquired technology and one-time events.
The bulk of Lucent's revenue, $6.885 billion, came from its service provider networks sector, which sells to wireless telecommunications network operators and local exchange carriers. The bulk of this came from the U.S., with just over a quarter from elsewhere. Growth outside the US was almost flat, largely as a result of the "substantial reduction" of one long-term project, the company said in a statement. But for this event, growth in service provider networks outside the U.S. would have been 22 percent.
Revenue in the company's microelectronics and communications technologies businesses increased 39 percent year on year to $1.809 billion, with revenue from optoelectronic components almost doubling.
Lucent announced plans to spin off its microelectronics businesses, including the manufacture of chips and optoelectronic components such as lasers, into a new as-yet unnamed company. It expects make an initial public offering (IPO) of up to 20 percent of the company by the end of March. Over the last twelve months, Lucent's microelectronics businesses have posted revenue of over $4 billion, the company said, with over three quarters of those sales coming from outside of Lucent.
Lucent Technologies, in Murray Hill, New Jersey, can be reached at +1-908-582-8500 or at http://www.lucent.com/.