NEW YORK-Lucent Technologies Inc. announced a 46-percent gain in net income, to $3.83 billion, for the fiscal year, and a 42-percent gain in net income per share, to $1.22, excluding one-time charges related to mergers and acquisitions.
Net income for the fourth quarter rose by 50 percent from the year-ago quarter to $972 million, or 31 cents per share, excluding one-time charges, the company said Oct. 26.
“This was the strongest quarter and the strongest year in Lucent’s history,” said Richard McGinn, chairman and chief executive officer.
During the last fiscal year, Murray Hill, N.J.-based Lucent announced more than $11 billion in contract awards, of which at least $2 billion occurred in September. McGinn said fourth-quarter growth was driven by Lucent’s focus on high-growth sectors, including optical, wireless and data networking and professional services.
Lucent’s microelectronics business racked up revenues of nearly $1 billion last quarter.
“Communications systems are replacing [personal computers] as a driver of the semiconductor industry, and Lucent is a leader in this chip technology,” McGinn said.
Lucent said its revenues from customers outside the United States grew by 38 percent during the last quarter and by 47 percent for the fiscal year, ended Sept. 30, although it did not give a dollar value. The company said it has won at least 60 contracts in foreign countries during fiscal 1999.
McGinn also announced a corporate realignment into four core businesses “intended to mirror the way we are approaching customers today-with converged network solutions.” The new divisions are Service Provider Networks, Enterprise Networks, NetCare Professional Services, Microelectronics and Communications Technologies.
Service Provider Networks, headed by Patricia Russo, will comprise optical networking, switching and access systems, wireless networks, communication software, lines of business focused on cable TV operators, those parts of internetworking systems targeted at telecommunications service providers and related sales, distribution, installation, maintenance for carrier customers.
Enterprise Networks, headed by William O’Shea, will consist of Lucent’s Business Communications Systems and Government Solutions businesses and related functions.
NetCare Professional Services, headed by John Drew, will include Lucent’s Professional Services business and International Network Services, which it recently acquired. Its mission is to help carriers and large-business enterprise customers deploy next-generation voice and data networks.
Microelectronics and Communications Technologies, headed by John Dickson, includes Lucent’s semiconductor business, its Network Products and New Ventures groups and its Intellectual Property Division. Its focus is on equipment manufacturers worldwide.
In related news, Lucent appointed Arun Netravali, a 27-year veteran of the company, president of Bell Labs, its research and development unit. Netravali, formerly executive vice president of research, succeeds Dan Stanzione, who has been named a special adviser to McGinn.
