Lucent reports loss of $US104M on revenue of $US2B
- 25 January, 2006 09:19
Lucent Technologies reported a net loss of $US104 million ($AU138.39 million) for the quarter ended Dec. 31, with revenue from products and services both down from a year earlier.
The networking and services company reported revenue of $US2.05 billion for the quarter, the first of its 2006 fiscal year, down 12 percent from $US2.34 billion a year earlier. Revenue from services declined slightly, to $US540 million from $US548 million, while product revenue dropped to $US1.51 billion from $US1.79 billion the previous year.
Lucent attributed the loss of $US104 million, or $US0.02 per share, to a previously notified charge of $US278 million in favor of Winstar Communications, a bankrupt broadband network operator. In the year-earlier quarter, Lucent had reported net income of $US174 million, or $US0.02 per share.
Revenue declined the least in the U.S., where it fell 7 percent compared to a year earlier. Outside the U.S., revenue dropped 20 percent. However, the company expects revenue to be stronger for the rest of the fiscal year, remaining at least flat compared to a year earlier, or increasing slightly.
The company has changed the way it reports the results of its business divisions. It now breaks out figures for four segments: mobility access, including third-generation mobile services and WiMax; multimedia networks; converged core networks, including VoIP (voice over Internet Protocol) and legacy voice networks, and finally services such as maintenance, deployment or network management.
Compared to a year earlier, revenue fell in all segments except multimedia networks, where it rose to $US395 million from $US366 million. Mobility access products continue to account for almost half of the company's revenue, at $US945 million for the quarter, down from to $US1.17 billion a year earlier.