NEW YORK-Lucent Technologies Inc., Murray Hill, N.J., North America’s largest telecommunications equipment manufacturer, surprised the investment community Jan. 20 with first-quarter results way ahead of expectations.
Lucent reported net income for the first quarter, which ended Dec. 31, increased by 30.8 percent to a record $1.12 billion.
These figures exclude a one-time $427 million charge related to the company’s acquisition of Livingston Enterprises, a high-tech data networking company, and a one-time $95 million gain from the sale of its Advanced Technology Systems business.
The company posted revenues of $8.72 billion, a 9.9 percent increase when compared to the same quarter a year ago.
“Our sales to network service providers were particularly strong this quarter … led by robust sales of switching and wireless systems and software,” said Richard McGinn, chief executive officer, president and soon-to-be chairman.
Revenues generated from Lucent’s Systems for Network Operators unit increased by $917 million or 18.2 percent, led by sales of switching and wireless systems, software, transport and access systems and professional services.
Revenues generated from network operators in the United States rose by about 26 percent compared with the first quarter of last fiscal year.
These were led by sales to competitive local exchange carriers, regional Bell operating companies, wireless carriers and long-distance telephone companies.
Sales generated outside the United States, which accounted for about 26 percent of Systems for Network Operators revenues for the latest complete quarter, remained unchanged compared with a year ago, the company said.
Revenues from Lucent’s Business Communications Systems went up by 11.4 percent, or $197 million, led by increased sales of messaging systems, including those provided by its recently acquired Octel Messaging Division.
Overseas revenues in this line of Lucent’s business increased by approximately 43 percent during the year-ago quarter, primarily due to expansion in Europe, the Middle East, Africa, the Caribbean, Latin America and Canada. Sales within the United States, which account for more than 80 percent of Business Communications Systems revenues, rose about 6 percent.
Revenues from sales of its Microelectronic Products rose by $104 million, or 15.5 percent, compared with the same quarter a year ago. “Product sales were driven by increased sales of customized chips for computing and communications, including components for wireless telephones, local area networks, data networking and high-end computer workstations,” the company said.
In Microelectronic Products, Lucent said revenues from the United States, which accounted for just more than half of this business line, rose by about 25 percent compared with the year-ago quarter, “driven by sales to original equipment manufacturers.” Overseas sales increased by about 7 percent.
During the latest quarter, Lucent also reported it increased research and development expenses by $116 million, or 16.3 percent, “primarily due to investments in high-growth areas [like] wireless, data networking, optical networking and microelectronics.”
