NEW YORK (CNNfn) - Lucent Technologies Inc., the nation's leading maker of telecommunications gear, posted a 60-percent rise in operating income in its third fiscal quarter amid huge demand for network equipment.
In the quarter ended June 30, Murray Hill, N.J.-based Lucent reported income before merger-related costs of $829 million, or 26 cents per diluted share, up from $518 million, or 17 cents a share, a year earlier.
Analysts expected Lucent to report earnings of 23 cents a share, according to a survey by First Call Corp., a research firm.
Revenue rose 22 percent to $9.32 billion.
Aside from a one-time $79 million charge in the latest quarter to pay for its purchase of Ascend Communications, Lucent posted income of $750 million, or 24 cents a share. A year earlier, $620 million in charges related to the purchase of Yurie Systems led to a loss of $150 million, or 5 cents per share.
Lucent's top executive credited the earnings improvement on a 27 percent gain in sales of network-related systems to regional Bell operating companies - the Baby Bells -- and long-distance carriers, which are building high-speed networks. Revenue in the segment rose to $6.1 billion.
"Carriers around the world are investing in next-generation networks at an unprecedented pace," Richard McGinn, chairman and chief executive officer, said in a statement.
Revenue in its business communications unit rose four percent to $2.1 billion, while sales at its microelectronics division rose 23 percent to $902 million.
Lucent said its net income was also bolstered by higher gross margins and a decrease in tax rates.
Shares of Lucent (LU), which was spun off from AT&T Corp. (T) three years ago and is one of the most widely held stocks in the nation, fell 1-5/8 to 76-13/16 Monday. info
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