Guys, look at the numbers closer and you will see that almost ALL of their profit increase from last year's Q2 came from;
1) REDUCTION in R&D
2) Increase in non-operating income (whatever they are)
So if you look at their Operating Income BEFORE R&D, it was 2.287 billion verus 2.186 billion in 1999.
This is only 4.6 % INCREASE in Operating Income. Not much of an improvement.
So what I read into this is that aside from huge growth in Optoelectronics division, LU is still continuing to have problems growing their top line and OPERATING income from 1999.
Also, another way to look at their revenue growth shows that it is definitely slowing down compare to their growth rates in 1999 and prior;
Q1 ending December 31,1998 was around 9.8 billion
Q2 endign March 31,2000 was 10.256 billion. So in 15 months, LU has grown their top line revenue by 4.65% which is an annualized rate of 3.72% growth in REVENUE.
Am I missing something here or do the LU numbers look better than they actually are according to my quick analysis?
Telecomguy
For Three Months Ended
03/31/00
03/31/00 (a)
03/31/99 (b)
Change (c)
Revenues
10,256
10,256
8,783
16.8%
Costs
5,939
5,939
4,546
30.6%
Gross Margin
4,317
4,317
4,237
1.9%
Selling, General and Administrative
2,030
2,030
2,051
(1.0)%
Research and Development
1,110
1,099
1,231
(10.7)%
Total Operating Expenses
3,140
3,129
3,282
(4.7)%
Operating Income
1,177
1,188
955
24.4%
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