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Lucent tops 2Q estimates
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April 19, 2000: 7:46 a.m. ET
Communications equipment maker also plans focus on new products
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NEW YORK (CNNfn) - Lucent Technologies Inc. Wednesday recorded a 41 percent jump in fiscal second-quarter earnings, topping Wall Street forecasts, and announced a shift in its manufacturing operations toward developing new communications products.
Profits at the nation's biggest maker of telecom gear rose to $754 million, or 23 cents a share, for its second fiscal quarter ended March 31, from $533 million, or 17 cents a share, a year earlier. The results topped the 22-cent consensus estimate surveyed by First Call, which tracks analysts' forecasts.
Sales rose 17 percent to $10.26 billion, driven primarily by strong growth of the company's wireless, Internet service provider and optical networking products.
 The company, one of the most widely held stocks on Wall Street, said it now expects full-year pro-forma earnings per share and revenue from ongoing operations growth of about 17 percent this year.
Earnings are expected to receive a significant boost during the third quarter from the more than $1 billion in new contracts for its optical networking products during the first quarter.
The company's enterprise networks unit saw its revenue fall 8 percent for the quarter, primarily due to lower sales of messaging systems. Lucent intends to spin-off three divisions, including its enterprise communications systems, by the end of September to form a separate $8 billion company.
Separately, Lucent (LU: Research, Estimates) also said Wednesday it would alter its equipment manufacturing operations to concentrate on "high-end process manufacturing and systems integration" -- including new product introductions and system testing.
The company said it would contract much of its other telecom equipment making to outside companies, allowing it to "focus its capital in other critical areas."
The company is considering a number of options to implement the plan, including having a contract manufacturer and/or employee group assume control of an existing Lucent facility and contracting work to that group.
Lucent shares rose 5-1/8 to 59-1/4 in Tuesday trading. 
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Lucent Technologies
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