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Lucent Tech's 4Q rings
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October 22, 1998: 8:08 a.m. ET
Telecom equipment maker posts 49% profit rise, excluding R&D costs
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NEW YORK (CNNfn) - Continuous demand for its switching and wireless systems helped communications equipment provider Lucent Technologies Inc. post a 48.5 percent increase in its fiscal fourth-quarter profits, the Murray Hill, N.J.-based company said Thursday.
In the latest quarter, net income excluding a $164 million pretax charge for research and development totaled $548 million, or 41 cents a share, compared with $369 million, or 28 cents a share, in the year-ago period. Including the in-process R&D expenses, net income totaled $388 million, or 29 cents, in the latest quarter.
Analysts had estimated profits of 39 cents, according to First Call.
Shares of Lucent (LU) jumped 4-3/16 to 79 in Wednesday trading on the New York Stock Exchange.
Aside from R&D costs, operating expenses rose during the quarter but not nearly as much as revenue, which gained 16 percent to $8 billion. Gross margins improved to 47.1 percent from 44.1 percent a year earlier.
Sales of switching and wireless systems rose 22 percent, led by orders from regional Bell operating companies. Sales of business messaging and data systems rose 35 percent.
For the fiscal year, net income excluding one-time items totaled $2.28 billion, or $1.72 a share, on sales of $30.1 billion.
Separately, Lucent agreed to invest up to $2 billion to form a strategic alliance with WinStar Communications Inc. to build WinStar's fixed wireless broadband telecommunications network.
Under the five-year agreement, WinStar may not withdraw the financing in amounts exceeding $500 million at any one time.
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Lucent
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