Hi David,
You might find this to be of interest:
Press Release Source: Lucent Technologies
Lucent Technologies Reports Results for the Fourth Quarter and Fiscal Year 2004
Wednesday October 20, 7:05 am ET
* With net income of $1.14 billion, Lucent posts first profitable year since fiscal 2000
* Reports net income of $348 million, or 7 cents per diluted share, for the quarter
* Posts revenues of $2.40 billion for the quarter, with annual revenues of $9.05 billion, up 7 percent year over year
MURRAY HILL, N.J., Oct. 20 /PRNewswire-FirstCall/ -- Lucent Technologies (NYSE: LU - News) today reported results for the fourth quarter and fiscal year 2004, which ended Sept. 30, 2004, in accordance with U.S. generally accepted accounting principles (GAAP). For the quarter, Lucent reported net income of $348 million or 7 cents per diluted share. These results compare with net income of $387 million or 8 cents per diluted share in the third quarter of fiscal 2004 and net income of $99 million or 2 cents per diluted share in the year-ago quarter.
The company reported revenues of $2.40 billion in the quarter, an increase of 10 percent sequentially and an increase of 19 percent from the year-ago quarter. The company's revenues were $2.19 billion in the third quarter of fiscal 2004 and $2.03 billion in the year-ago quarter.
The fourth quarter's earnings per share included the positive impact of certain items, including the revaluation of warrants that are expected to be issued as part of Lucent's global settlement of shareowner litigation and bad debt and financing recoveries, which were partially offset by charges related to the closing of the Telica acquisition. The net effect of these items was a positive impact of about 3 cents per diluted share.(1)
The impact of similar items resulted in a positive impact of about 4 cents per diluted share in the third quarter of fiscal 2004 and a positive impact of about 2 cents per diluted share in the year-ago quarter.(1)
For the fiscal year, Lucent reported revenues of $9.05 billion, an increase of 7 percent compared to $8.47 billion in revenues for fiscal 2003. The net income for fiscal 2004 was $1.14 billion or 25 cents per diluted share, compared to a net loss of $770 million or 29 cents per diluted share for fiscal 2003.
EXECUTIVE COMMENTARY
"I am pleased to report that by focusing on growth opportunities in the marketplace and solid execution, our Lucent team has achieved its first year of revenue growth and profitability since 2000," said Lucent Technologies Chairman and CEO Patricia Russo. "We expect our market -- and our business -- to grow again in 2005 as our customers continue to invest in revenue-generating services and more efficient network operations.
"The communications industry is beginning to transform itself as the convergence of networks and the emergence of blended applications are creating the ability to deliver more personalized, seamless and simple communications services for people at work, at home or in between," said Russo. "We have communicated a clear vision of the future that supports the goals and objectives of our customers, and we are delivering a broad portfolio of products, services and partnerships that we believe will meet those needs across the board. In the past year, Lucent has announced more than 100 customer wins in 35 countries. In addition, we also announced 18 new products, 10 new technology partnerships and one acquisition to enhance our offers for converged networks.
"Clearly, the mobility sector remains a strong growth area as service providers continue their move to 3G networks for mobile high-speed data services," continued Russo. "On the wireline side, we will continue to see a transition to broadband access and new IP-based infrastructures and applications. Lucent will continue to focus on growing in areas like next-gen optical, VoIP, broadband access and mobile high-speed data, as well as services, government and emerging markets outside the United States."
Lucent Technologies Chief Financial Officer Frank D'Amelio said, "We continued to generate profitable results and positive cash flow this quarter, while investing in the business. At this point, we expect Lucent's annual revenues for fiscal 2005 to increase on a percentage basis in the mid-single digits, which we believe will be at or above the market growth rate."
GROSS MARGIN AND OPERATING EXPENSES
Gross margin for the fourth quarter of fiscal 2004 was 41 percent of revenues as compared with 43 percent in the third quarter of fiscal 2004. For the fiscal year, gross margin was 42 percent of revenues as compared with 31 percent for fiscal year 2003.
Operating expenses for the fourth quarter of fiscal 2004 were $691 million as compared with $598 million for the third quarter of fiscal 2004. For the fiscal year, operating expenses were $2.56 billion as compared with $2.87 billion for fiscal year 2003.
BALANCE SHEET UPDATE
As of Sept. 30, 2004, Lucent had $4.87 billion in cash and marketable securities, which represents an increase of $178 million from the previous quarter. The increase was primarily driven by operating activities.
REVIEW OF OPERATIONS - THREE MONTHS AND YEAR ENDED SEPT. 30, 2004
On a sequential basis, revenues in the United States increased 3 percent to $1.44 billion, and revenues outside the United States increased 22 percent to $959 million. Compared with the year-ago quarter, U.S. revenues and revenues outside the United States increased by 20 percent and 17 percent, respectively.
For fiscal year 2004, revenues in the United States were $5.51 billion and revenues outside the United States were $3.53 billion. Compared with fiscal year 2003, U.S. revenues and revenues outside the United States increased 7 percent and 6 percent, respectively.
Integrated Network Solutions (INS)
INS revenues for the fourth quarter of fiscal 2004 were $741 million, an increase of 4 percent sequentially and a decrease of 14 percent compared with the year-ago quarter. For fiscal year 2004, INS revenues were $2.98 billion, a decrease of 10 percent from fiscal year 2003.
In the fourth quarter, Lucent made several important announcements in areas such as voice over Internet protocol (VoIP), broadband access and next-generation optical:
* Lucent continued to demonstrate progress with its solutions for IP
services in a number of wins and network deployments. Telstra will
build out Phase II of its VoIP deployment in Australia using key
components from the recently acquired Telica. KPN in the Netherlands
will deploy one of Europe's first networks using IP and MPLS technology
that supports Lucent's vision of convergence. Telefonica de Espana
S.A.U. chose Lucent's Ethernet solution to support the next phase of
its multimedia broadband service deployment in Spain. Maxcom
Telecomunicaciones in Mexico selected Lucent's 5E-XC(TM) switch
software from the Accelerate(TM) portfolio and additional systems to
lay the groundwork for offering IP services, including VoIP and virtual
private networks over its networks.
* In the optical area, Lucent announced several wins that show the
strength of its next-generation optical portfolio. Verizon said it
would become the first service provider in the United States to deploy
Lucent's LambdaXtreme(TM) Transport as part of its nationwide, ultra
long-haul optical long-distance network. Lucent's LambdaUnite(R)
MultiService Switch was part of an agreement with Hubei Unicom. And
Lucent's Metropolis products were part of wins with the U.S. Army,
NoaNet of Oregon and Alestra in Mexico.
* Lucent continues to deliver broadband access solutions, such as the
AnyMedia(R) and Stinger(R) access platforms, which enable customers to
evolve their networks to a "triple play" delivery of voice, video and
data services over high-speed connections. Recent contract
announcements were made this quarter with Arcor of Germany and
Telekomunikacja Polska.
* Lucent also announced several contracts for network management software
-- VitalQIP(R), Netminder(TM) and Navis(R) -- that deliver broadband
services, troubleshoot networking problems and improve the efficient
flow of traffic on customer networks. This quarter's announcements
included KT, Korea's largest communications service provider, Telemar
of Brazil and the U.S. Defense Information Systems Agency.
Mobility Solutions
Mobility revenues for the fourth quarter of fiscal 2004 were $1.11 billion, an increase of 13 percent sequentially and 75 percent compared with the year-ago quarter. For fiscal year 2004, Mobility revenues were $4.01 billion, an increase of 30 percent from fiscal year 2003.
In the fourth quarter, Lucent demonstrated strong momentum in its mobility business, seeing continued progress in customer deployments of 3G spread spectrum technologies:
* During the quarter, Lucent announced a $5 billion contract with Verizon
Wireless to continue the expansion of the operator's next-generation
mobile voice and data network. Lucent also announced support for
Verizon Wireless' commercial rollout of 3G CDMA2000 1xEV-DO services in
11 new markets.
* Lucent announced 3G network deployments and expansions with VIVO in
Brazil, Iusacell in Mexico and Guangdong Unicom, a part of China
Unicom.
* Lucent continued to show its strength in the emerging CDMA450 market,
announcing an agreement with Romania's Zapp to expand and upgrade its
network to support CDMA2000 1xEV-DO services, and a field trial with
SKYLINK in Russia integrating Lucent's CDMA2000 solution for the 2.1
GHz spectrum band with SKYLINK's commercial CDMA450 network. Lucent
also introduced a new cost-effective, high-capacity CDMA450 base
station called the Flexent(R) CDMA450 Modcell ES.
* Lucent and Novatel Wireless continued to lead the market for Universal
Mobile Telecommunications System (UMTS) wireless PC cards with sales to
Poland's PTC, O2, AT&T Wireless, Orange, Israel's Partner
Communications, KPN Mobile and Portugal's TMN.
Lucent Worldwide Services (LWS)
LWS revenues for the fourth quarter of fiscal 2004 were $514 million, an increase of 9 percent sequentially and as compared with the year-ago quarter. For fiscal year 2004, LWS revenues were $1.93 billion, an increase of 5 percent from fiscal year 2003.
Lucent Worldwide Services continues to focus on broadening its business and leveraging its multivendor and network integration capabilities with new professional, managed and maintenance services wins, as well as contributions to several other major contracts:
* Lucent's services offerings were part of 16 contracts announced this
quarter, including a multiyear managed services agreement with
Fiberlink Communications Corp. to provide global network management
services for its network operations, while enabling it to deliver
virtual private network solutions to its enterprise customers.
* Lucent also announced a three-year contract with the U.S. Army to
provide professional services for the Army's Ft. Drum facility in New
York.
* Lucent also signed multivendor maintenance and managed services
contracts with Kenniswijk BV of the Netherlands and Innove
Communications in the Philippines. |
