Lucent posts 50% rise in Q4 profits

BANGALORE: Lucent Technologies Inc. posted a 50 per cent rise in fourth-quarter profits, excluding one-time items, amid strong growth in sales of wireless, data and optical networking equipment. Lucent's fourth-quarter profits, excluding acquisition-related charges, rose to $972 million or 31 cents a share, from $647 million, or 21 cents a share a year earlier and revenues rose 23 per cent from a year earlier, to $10.575 billion.

Lucent is also expected to restructure into four units to focus better on segments such as semiconductors, wireless, optical and data networking and professional services. The company has topped Wall Street earnings expectations every quarter since it was spun off from AT&T in 1996. In recent months, some analysts had expressed concern about Lucent's potential revenue growth, as well as inventory and uncollected bills. These issues weighed on Lucent's stock since hitting its all-time high of 79-11/16 in mid-July. Including costs related to several acquisitions and other items, Lucent's fourth-quarter net income was $948 million, or 30 cents a share, up from $220 million, or seven cents a share, a year ago.

"This was the strongest quarter and the strongest year in Lucent's history. We delivered on and exceeded our commitment to grow the top-line (revenues) by 19 to 20 per cent and earnings per share by 35 per cent, excluding one-time events," said Lucent Chairman Richard McGinn. Lucent expects revenues during 2000 to grow 3-5 percentage points faster than the average market growth rate of 14-15 per cent. Lucent has been buying companies and shifting from its focus on telephone equipment to concentrate on the markets for high-speed voice, data networking and video communications.