Lucent Technologies turned in a $597 million fourth quarter loss on sales up by 17 per cent to $6.9 billion from $5.9 billion last year. The telephone equipment manufacture attributes the loss to its $1.8 billion acquisition of Octel Communications, incurring a $945 million one-off charge.
Overall, Lucent?s performance was better than anticipated. Excluding the one-time charge, net earnings were $369 million. Including the charge, the net loss was 95 cents a share, down from last year?s earnings of 40 cents. Before charges, margins were 44.1 per cent, up from 43.5 per cent.
Revenues from operational network systems increased by 17.8 per cent and microelectronic revenues rose 24 per cent to $782 million, reflecting increasing demand for chips and components. Sales of communications systems for business rose by 21 per cent while consumer revenues inched up by 1.6 per cent.
AT&T spun off Lucent Technologies last year, and an ebullient Richard McGinn, chief executive officer, said: ?This is a great finish to our first fiscal year as an independent company. In the past few weeks we?ve completed our acquisition of Octel, announced plans to acquire Livingston Enterprises? and created a joint venture with Philips for the consumer terminal market.?
Analysts concurred and Lucent?s stock rose on the New York Exchange by $1.4 to $87.25 earnings.
Tesco wrangling with FCA over size of fine
Equinox's Dave Millett explores how phone, mobile and broadband could be affected by a no-deal Brexit
Dust storm on Titan only the third Solar System body where such storms have been observed
New technique could enable quantum computers to scale-up to millions of qubits