Lucent's 4Q Net More Than Tripled on 19% Jump in Revenue

MURRAY HILL, N.J. -- Lucent Technologies Inc.'s (LU) fiscal fourth-quarter earnings more than tripled, and the telecommunications-equipment company ended a fiscal year in the black for the first time in four years after focusing on growth opportunities.

Lucent also provided sales guidance for fiscal 2005 that calls for growth in the mid-single digits on a percentage basis.

Lucent on Wednesday said net income for the quarter ended Sept. 30 surged to $348 million, or seven cents a share, from $99 million, or two cents a share, a year earlier. Revenue climbed 19% to $2.4 billion from $2.03 billion.

The latest results reflected warrant revaluations, which were partially offset by charges related to an acquisition. The net effect of these items boosted earnings by about three cents a share, Lucent said.

Analysts surveyed by Thomson First Call produced a mean earnings estimate of four cents a share on revenue of $2.29 billion. First Call estimates typically exclude items.

Lucent's results for the fourth quarter, while sequentially weaker, back company sentiment that its financial performance has stabilized after the telecom industry collapse a few years ago. Lucent said in Wednesday's earnings release that it achieved its first year of revenue growth and profitability since 2000 by focusing on growth opportunities and solid execution.

In the past fiscal year, the company recorded more than 100 customer wins in 35 countries, as well as several new products and technology partnerships. In the fourth quarter, revenue was up 20% in the U.S. and 17% internationally.

For the future, Lucent said the mobility sector remains a strong growth area. Revenue in this segment soared 75% to $1.11 billion in the fourth quarter as customer deployment of spread-spectrum technologies continued.

The company also predicted a continued transition to broadband on the wireline side.

For the full fiscal year ended Sept. 30, Lucent had net income of $1.14 billion, or 25 cents a share, compared with a year-earlier net loss of $770 million, or 29 cents a share. Revenue for the year increased 6.8% to $9.05 billion from $8.47 billion in fiscal 2003.

In addition to cost cuts, Lucent is benefiting from its work on two high-profile wireless network upgrades. Verizon Wireless is deploying nationwide broadband service with Lucent's help, and has agreed to spend at least $5 billion with Lucent for that and other projects over the next several years. Lucent is also helping Cingular Wireless LLC test a high-speed network in Atlanta.

Lucent recently disclosed plans to make additional cuts in its retiree health-care benefits, in a step that will affect thousands of former employees. The move, which goes into effect in January, was the second reduction announced by the company within the past year.

In September, Lucent reached an agreement with U.S. tax authorities to receive a tax refund of $816 million. Lucent said it expects to receive the payment sometime during the current fiscal year.

-Lisa Reynolds, Dow Jones Newswires; 201-938-5400

(The Wall Street Journal Online contributed to this article.)

(END) Dow Jones Newswires "

Posted to the site on 20th October 2004