Core performance helps Bell Atlantic with PrimeCo costs
PHILADELPHIA-Bell Atlantic Corp.’s Chairman and Chief Executive Officer Raymond Smith, said during the first quarter the company was able to absorb start-up costs for its new ventures such as PrimeCo Personal Communications L.P. and international wireless activities. Cost control measures were implemented and strong performance of Bell Atlantic’s core business units helped the company offset the start-up costs.
“Demand for our services, including data connectivity, wireless and value-added services, continues to drive excellent bottom line performance,” said Smith.
Revenues for the quarter were $3.4 billion, 6 percent more than revenues of $3.2 billion during first quarter 1996. Net income was $515.6 million, or $1.17 per share, compared with net income of $606.8 million, or $1.38 per share, for the same period last year.
Bell Atlantic Nynex Mobile posted a 23 percent increase in net revenues compared with first quarter 1996, the company said. The company added 224,000 new customers during the quarter for a total of 4.6 million subscribers.
“First quarter 1997 was another successful period for our wireless businesses,” said Lawrence Babbio Jr., vice chairman of Bell Atlantic. “Domestically we brought Code Division Multiple Access digital technology to all but one of our major Bell Atlantic Nynex Mobile markets, and by the end of the second quarter our network will be digital in all markets.”
Glenayre records drop in net income
CHARLOTTE, N.C.-Glenayre Technologies Inc. reported a decrease in net income for the quarter ended March 31.
Net income was $13.5 million, or 22 cents per share, compared with net income of $17.1 million, or 27 cents per share, for the same period a year ago.
“Despite the fact that our combined U.S. one and two-way net sales were off 33 percent as compared to the first quarter of 1996, the company managed an overall net sales growth of 18 percent,” said Gary Smith, president and chief executive officer of Glenayre. “Figuring strong in the increased net sales were international paging, which was up 88 percent, Integrated Network group, which increased 212 percent and the Wireless Interconnect group, which grew 72 percent.”
Net sales for the first quarter were $105.8 million, compared with sales of $89.4 million for first quarter 1996.
Northern Telecom sees strong growth
TORONTO-Northern Telecom Ltd. said it had strong revenue growth in the United States and Canada as well as increased revenues in the Caribbean, Latin America, Asia Pacific and Europe.
The United States accounted for 57 percent of Nortel’s total revenues with $1.9 billion. Europe had $722 million and Canada followed with $325 million.
Total revenues for the quarter were $3.35 billion, 29 percent more than revenues of $2.6 billion for first quarter 1996. Net income was $108 million, or 41 cents per share, compared with net income of $82 million, or 32 cents per share, for the same period last year.
“We are pleased with our overall financial performance in the first quarter,” said Jean Monty, vice chairman and chief executive officer of Nortel. “We continue to be very pleased with our order input, which reflects year over year growth in all our network businesses, with our public carrier networks and wireless networks businesses showing particular strength in the quarter.”
