<A> Lucent CEO Sees xDSL Having Broad Customer Appeal
NEW YORK (Dow Jones)--The speed and ease with which xDSL can transmit data will win customers for Lucent Technologies Inc. (LU), Chief Executive Richard McGinn said.
In a interview on CNBC Wednesday, McGinn said its xDSL technology simplifies an existing way of transmitting data. "It takes away the need for expensive technology," he said. "From the consumer standpoint, I expect much broader acceptance."
McGinn said that xDSL likely will be consistent with the standard for digital subscriber line technology that has been pushed for by a consortium led by Microsoft Corp. (MSFT), Intel Corp. (INTC) and Compaq Computer Corp. (CPQ).
Lucent's technology allows quicker transmission of Internet data over home phone lines.
He noted that Lucent will be present when the consortium speaks publicly about its aims next week. "We'll be there as part of the consortium," he said.
Beyond the xDSL technology, McGin said Lucent is benefitting from its ability to deliver communications networks to its customers. "More and more we see customers deciding to buy networks rather than good boxes from individual companies," he said. "We feel we're advantaged by delivering an overall network capabilities."
Some of that advatage may have been the force behind Lucent's strong first-quarter earnings.
Monday, Lucent reported net income, excluding items, of $1.2 billion, or $1.72 a diluted share, compared with $859 million, or $1.35 a share, a year earlier.
Analysts had expected Lucent to earn $1.52 a share for the quarter, according to First Call Corp., which tracks analysts' earnings estimates.
McGinn said the quarter was very strong overall, but the company did see some weakness in the messaging systems area. He said that if not for the softness in that area, Lucent would have seen growth above 15% in its microelectronics business.
Looking ahead, McGinn said that both the voice and data sides of Lucent's business appear strong. "There's continued growth for us on the voice side of the business, and as well there's a whole new play for us in the data world," he said. |
