Profit down, revenue up in Lucent's third quarter

Profit down, revenue up in Lucent's third quarter

Lucent grew its revenue 7 percent in the third quarter, but its profit shrank nevertheless.

Lucent Technologies reported a decline in profit for its third fiscal quarter, although strong sales of 3G (third-generation) mobile network equipment helped push revenue up 7 percent, the company announced Tuesday.

Net income for the three months to June 30 was US$372 million, or US$0.07 per share, compared with net income of US$387 million, or US$0.08 per share, in the same quarter a year ago, Lucent said.

Revenue was US$2.34 billion, up from US$2.19 billion in the third quarter of fiscal 2004, the company said.

Patricia Russo, Lucent's chairman and chief executive, called the results "steady." The company's wireline business is stabilizing and Lucent will continue to invest in emerging technologies such as high-speed mobile data, broadband access and next-generation optical equipment.

Lucent's mobility business, including 3G networks gear, grew its revenue 14 percent from a year earlier, to US$1.17 billion. Last week, the company announced a three-year, US$500 million deal to provide 3G equipment for MetroPCS in the U.S. Other mobile wins included Mexico's Grupo Iusacell SA de CV, Russia's Delta Telecom and New Zealand Telecom Ltd.

Lucent's services business also did well, increasing revenue by 14 percent from a year ago, to US$538 million.

Its Integrated Network Solutions business, which offers optical, broadband and VOIP (voice over Internet Protocol) equipment, was less successful. Revenue from that division fell 12 percent from a year ago, to US$592 million.

Revenue from the U.S. grew 8 percent overall from a year earlier, while revenue from outside the U.S. increased by 4 percent.

The company reaffirmed its financial guidance for the fiscal year: It expects to grow revenue in the mid single-digit percentage range, which it believes will be about the market rate.

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