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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: StanX Long who wrote (63195)	4/25/2002 2:43:13 AM
From: StanX Long	Read Replies (1) \| Respond to of 70976

AT&T Tops Expectations by Two Cents host.wallstreetcity.com Boston, Apr 24, 2002 (MidnightTrader via COMTEX) -- AT&T (T) announced this morning a Q1 profit of $0.06 per share, two cents better than the First Call consensus, and an improvement from the loss of $0.02 on the same basis for the same quarter last year. Revenue for the quarter was $12.02 billion, slightly lower than the $12.2 billion forecast by analysts, and a decline of 8.4 percent on a pro forma basis compared to the year-ago quarter, primarily due to continued declines in long distance voice services. Looking forward, AT&T Business anticipates that due to its Concert joint venture it will report incremental revenue of approximately $575-$675 million, distributed evenly over the remainder of 2002. Concert's operating losses and costs related to its reintegration, global strategy implementation and network expansion and development will also drive an incremental reduction of $200-$250 million in EBIT, excluding other expense/income, for the remaining three quarters of 2002, with approximately 10-15 percent of this decline coming in the second quarter, and the balance distributed evenly over the second half of the year. Approximately half of the total reduction is for one-time integration costs and expenses for expanding AT&T's global network, particularly in Europe. Based on a continuing trend of constrained spending on telecommunications services in the business market, AT&T Business has adjusted expectations by one percent to reflect a full-year revenue decline of approximately 7 percent, excluding the anticipated Concert revenue of $575-$675 million. Including Concert revenue, the decline is expected to be in the 4.5 to 5 percent range. For the second quarter, excluding the impact of Concert, AT&T Business expects a similar to slightly improved rate of revenue decline versus the first quarter rate of 8 percent. Including Concert, the second quarter rate of decline will improve by 2-4 percentage points. Despite revenue pressures, and as previously anticipated, AT&T Business expects second quarter and full-year EBIT, excluding other expense/income, margins to decline slightly, by 1 to 2 percentage points, compared to the restated 2001 margin of 13.3 percent, excluding the impact of the Concert integration. Including the impact of the Concert integration, full-year EBIT margin, excluding other expense/income, for 2002 is expected to decline approximately 1 additional percentage point, resulting in a total decline of 2 to 3 percentage points.