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Lucent Wirelessly Wallops 2Q Earnings
By John Stith
Staff Writer
Article Date: 2005-04-19
Lucent Technologies Inc. announced earnings quadrupled during the second quarter over the same earnings period a year ago primarily due a high demand for wireless network products. Lucent will also combine its mobility and wireline business. This announcement led to a nearly 5% increase in stock prices.
Stocks prices were up about 6 cents a share from 2 cents last year. This $282 million dollar jump is huge over last year's $68 million.
Analysts were looking for a profit of 4 cents a share for $2.31 billion in sales.
"Overall, it was a solid quarter for us," Lucent chairman and CEO Patricia Russo told analysts during a morning conference call.
"We also continued to show strength in our services business, with close to half a billion dollars in revenues, and we continue to invest in areas that are critical to our business such as next-gen optical, VoIP and mobile high-speed data, as well as services, government and emerging markets," Russo said.
Cindy Christy, former president of the Lucent Mobility Solutions division, will head the new combined mobility and wireline businesses. The new business will be called the Network Solutions Group.
Lucent had no predictions on how and who would be laid off as a result of this in-house merger although Lucent has dumped 800 workers since autumn.
About the Author:
John Stith is a staff writer for WebProNews covering technology and business.
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