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To: Greg h2o who wrote (16560)	10/27/1999 3:10:00 PM
From: signist	Respond to of 42804

(COMTEX) B: Lucent Breaking Into Four Divisions MURRAY HILL, N.J., Oct 26, 1999 (AP Online via COMTEX) -- Lucent Technologies, the world's biggest telephone equipment maker, said Tuesday that it will break into four divisions in an effort to sharpen the company's focus on the high-growth areas of optical networking, wireless communications, semiconductors and e-business. The four new divisions -- Service Provider Networks, Enterprise Networks, NetCare Professional Services and Microelectronics and Communications Technologies -- will be headed by current Lucent executives and will continue to operate under the Lucent umbrella. In conjunction with Tuesday's announcement, the company reported several personnel shakeups and a 50 percent increase in its fourth-quarter profits, beating Wall Street expectations. Lucent shares rose $3 to $62.87 1/2 in trading on the New York Stock Exchange As part of the staff changes, chief operating officer Ben Verwaayen was named vice chairman in charge of international business, and Arun Netravali was chosen to replace Dan Stanzione as president of Bell Labs, the company's research arm. Stanzione will serve as advisor to the company's chairman and chief executive officer, Richard McGinn. Robert Holder will oversee staffing and strategy for all four divisions. Service Provider Networks will work with Internet service providers, telephone networks and other communications providers. Enterprise Networks, which will consist of Lucent's current Business Communication Systems and Government Solutions as well as parts of InterNetworking Systems, will be responsible for voice and data solutions for small and large businesses, including the federal government. Netcare Professional Services will be responsible for consulting and design and will look at future network possibilities for businesses. Microelectronics and Communications Technologies will include Lucent's microchip business and component equipment. Lucent employs more than 150,000 people worldwide, including 21,000 in New Jersey. The company does not expect layoffs as a result of the restructuring. Lucent posted profits -- not including one-time expenses associated with mergers and acquisitions -- of $972 million, or 31 cents per share, during the fourth quarter ended Sept. 30, compared with $647 million, or 21 cents per share, during the same quarter a year ago. The results topped expectations of analysts surveyed by First Call/Thomson Financial, who had been expecting 29 cents per share. Total revenues during the quarter were up 23 percent to $10.6 billion from $8.6 billion the year before. Lucent's revenue for the fiscal year ending Sept. 30 totaled $38.3 billion, a 20 percent increase over the previous year. Annual profits were up 46 percent to more than $3.8 billion, or $1.22 per share, from $2.6 billion, or 86 cents a share, last year. Copyright 1999 Associated Press, All rights reserved. -0- APO Priority=r APO Category=1700 * end of story *