Earnings Roundup: Compaq, Lucent, SCO Surpass Expectations - InformationWeek

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Earnings Roundup: Compaq, Lucent, SCO Surpass Expectations

Compaq posted third-quarter revenue of $9.2 billion, up 5% over the third quarter of 1998. Net income for the quarter, which ended Sept. 30, was $117 million, or 7 cents a share, surpassing the expectations of Wall Street analysts who predicted earnings of about 5 cents per share. The results don't include an $868 million restructuring charge or $1.2 million in proceeds from Compaq's sale of the AltaVista search engine earlier this year. Revenue from Compaq's commercial PC group fell 16% to $2.7 billion. However, Compaq president and CEO Michael Capellas said the company will address those challenges by launching products that are more closely attuned to the needs of Web-enabled enterprises, noting that the company will shift much of its focus in the corporate market to thin clients and devices that allow wireless connections to the Internet. Capellas also noted the company is on pace with a previously announced cost-cutting plan that includes staff cuts of up to 7,000 positions. - Paul McDougal

Telecommunications products and services vendor Lucent Technologies reported higher-than-expected earnings for its fourth-quarter ending Sept. 30. Lucent recorded a 23% increase in revenues, to $10.6 billion, compared with year- ago fourth-quarter revenue of $8.6 billion. Net income rose to $948 million or 30 cents per share, vs. $220 million or 7 cents per share for the year-ago quarter. For fiscal 1999, revenues increased 20% to $38.3 billion, vs. revenues of $31.8 billion in fiscal 1998. Net income rose to $4.8 billion or $1.52 per share for the fiscal year, compared with $2.6 billion or 86 cents per share for fiscal 1998. Lucent also announced the formation of four core businesses that will operate under one brand with the support of Bell Labs technology. Service Provider Networks, Enterprise Networks, NetCare Professional Services, and Microelectronics and Communications Technologies, will help Lucent capitalize on opportunities in the communications networking space company officials say. - Tischelle George

Unix vendor the Santa Cruz Operation reported that, for the fourth fiscal quarter of 1999 ended Sept. 30, revenues reached a record $58 million, a 20% increase over the $49 million reported in the fourth quarter a year ago. Net profit for the quarter was $5 million or 16 cents per basic share, a 100% increase over the net profit of $2.6 million, or 8 cents per share, in the same period last year. Revenues for the fiscal year ended Sept. 30 grew 30% to $224 million, compared with $172 million for the same period last year. Net profit for 1999 was $17 million, or 49 cents per basic share, and 46 cents per diluted share, compared with a net loss of $15 million, or 41 cents per share, basic and diluted, for fiscal 1998. "The exponential growth of the Internet and the need to access data anytime from anywhere has given the industry an insatiable appetite for server- centric computing," said Doug Michaels, president and CEO of SCO, in a statement. - John Soat

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