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Lucent ends 12-quarter run of losses

Ben Charny CNET News.com

Published: 23 Oct 2003 12:35 BST

Lucent Technologies on Wednesday reported a net profit of $99m (£59m) for its fourth quarter, ending three years of unprofitable quarters for the network-equipment maker.

But chief executive officer Patricia Russo warned investors that the company still has "some work to do and, in the current challenging market environment, it's likely we will still have some ups and downs on the way to sustained profitability."

Russo said Lucent has recently experienced some growing stability within the telecommunications industry, plus "pockets of opportunity" for the equipment needed to create city-sized optical networks and high-speed, wireless data networks.

The company reported fourth-quarter earnings of 2 cents a share for the period that ended 30 September, compared with a loss of $254m, or 7 cents a share, in the same quarter last year. Its sales total of $2.03bn for the quarter was a slight improvement, about 3 percent, from the $1.96bn reported in the same quarter last year.

Lucent's earnings beat the loss of 4 cents a share expected by analysts surveyed by First Call.

Lucent's results are adding to the renewed enthusiasm within the telecommunications industry, which has been mired in what some industry observers believe is its worst slump ever. The recent spate of earnings reports in the sector has helped lift spirits, although Lucent, Cisco Systems and other major telephone equipment providers remain cautious about citing a recovery.

Lucent didn't predict its next-quarter performance, but chief financial officer Frank D'Amelio said the company expects to achieve some sustainable profitability next year, when it will focus on new-product areas for the company, such as voice-over-IP dialling equipment.

The company last reported a net-quarterly profit in mid-2000. Since then, it and the rest of the telecommunications industry have been rocked by increasing competition, falling equipment prices and global economic dourness.

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