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Telecommunications equipment industry

Lucent Technologies Reports 60% Increase in Net Income and 22% Revenue Growth in Third Fiscal Quarter

Strategic Insights

— 1 min read

Lucent Technologies, a leading provider of communications systems and software, reported a significant increase in net income and revenue in the third fiscal quarter ended June 30, 1999. The company's net income rose 60% to $829 million, or 26 cents a share, excluding one-time merger-related costs. Revenues for the quarter increased 22% to $9.315 billion, compared to $7.642 billion in the same quarter last year.

Key Takeaways:

  • Lucent's net income increased 60% to $829 million, or 26 cents a share, excluding one-time merger-related costs.
  • Revenues for the quarter increased 22% to $9.315 billion, compared to $7.642 billion in the same quarter last year.
  • The company's growth was driven by strong demand for next-generation networks, with carriers around the world investing at an unprecedented pace.
  • Lucent's recently completed merger with Ascend Communications positions the company as a leader in communications networking.
  • The company announced nearly $9 billion in new business, including major broadband wins with Level 3 Communications, Telefonica, Telstra, and Frontier Communications.
  • Lucent's growth was strong across both established and emerging service providers and geographic regions, with year-over-year revenue growth of 48% outside the U.S.
  • The company's microelectronics business, which leads in more communications semiconductor categories than any other company, was a key growth driver in the quarter.

Statistics:

  • Net income increased 60% to $829 million, or 26 cents a share, excluding one-time merger-related costs.
  • Revenues for the quarter increased 22% to $9.315 billion, compared to $7.642 billion in the same quarter last year.
  • Year-over-year revenue growth outside the U.S. was 48% for the quarter and 51% for the fiscal year to-date.
  • The company's microelectronics business led in 23 out of 25 communications semiconductor categories in the quarter.
  • Lucent's gross margin for the quarter improved to 48.1% from 46.5% in the year-ago quarter, reflecting a more favorable mix of products.
  • Selling, general and administrative expenses (SG&A), excluding one-time charges, accounted for 21.3% of revenues in the quarter.

Sources:

  • (1) Lucent Technologies press release, "Lucent Technologies Reports Third Quarter Results," July 13, 1999.
  • (2) Lucent Technologies press release, "Lucent Technologies Announces 26% Earnings Growth and 22% Revenue Growth in Third Fiscal Quarter," July 13, 1999.
  • (3) Lucent Technologies, "Lucent Technologies Reports Third Quarter Results," July 13, 1999.

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