LONDON (04/19/2000) - Led by strong sales in its wireless division, Lucent Technologies Inc. today reported 41 percent growth in net income for the second fiscal quarter ended March 31, 2000, compared to the same period last year, just beating analysts' expectations.
Net income for the telecommunications equipment maker was US$754 million, or 23 cents per share, compared to $535 million, or 17 cents per share, for the same period last year, Lucent said in a statement.
This betters analyst predictions by a cent. The mean forecast by 31 analysts participating in a First Call/Thomson survey was 22 cents.
Revenues rose 17 percent to $10.26 billion, up from $8.78 billion a year ago, Lucent said. The increase was a result of sale growth of over 50 percent in its wireless and Internet infrastructure divisions, which includes optical and data networking systems and optical fiber, Lucent said. The professional services and optoelectronic divisions also experienced strong growth, the company said.
Furthermore, Lucent credited the growth in net income during the second quarter to reductions in operating expenses combined with the company's continuing effort to reduce its effective tax rate.
Revenues for ongoing operations were $8.325 billion, a growth of 26 percent, compared to $6.604 billion for the same period last year, Lucent said. The numbers for the ongoing operations reflects Lucent's plans to spin off its enterprise networks business later in the year, the company said.
The new Enterprise Networks Group spin off is part of a change in its global manufacturing strategy, the company said. Lucent is now focusing on high-end process manufacturing and systems integration, which will include the launch of new products, Lucent said. The company plans to contract out other telecom equipment making, Lucent said.
During the quarter, Lucent secured more than $1 billion in new contracts for its optical networking products, a division that will continue to drive growth for the company, Lucent said.
Lucent Technologies, in Murray Hill, New Jersey, can be reached at +1-908-582-8500 or at http://www.lucent.com.