Lucent Posts First Quarterly Profit Since 2000 - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Business & Finance

Lucent Posts First Quarterly Profit Since 2000

The maker of networking equipment ended a 13-quarter streak of losses with a third-quarter profit of $99 million.

MURRAY HILL, N.J. (AP) -- Telecommunications gear maker Lucent Technologies has turned a quarterly profit for the first time in more than three years, rebounding from a 13-quarter streak of often multibillion-dollar losses with a $99 million profit.

While the company's losses have been shrinking in recent quarters, analysts did not expect a profit for the quarter that ended Sept. 30 or the next one.

The Murray Hill-based company on Wednesday reported net income of $99 million or 2 cents per share. The 30 analysts surveyed by First Call expected a 4-cent per share loss; none of them expected a profit.

A year ago, Lucent reported a net loss of $2.8 billion, or 84 cents per share.

The company has shrunk its losses by becoming a smaller operation. Through layoffs and other cost-cutting measures, the company has slashed operating expenses to $524 million for the quarter, down 79 percent from $2.5 billion a year earlier.

Revenue for the most recent quarter was just over $2 billion, down 11 percent from the $2.3 billion it brought in during the year-ago period.

Lucent CEO Patricia Russo said the company's restructuring into a smaller firm is essentially complete. She also said that the quarterly profit is not an indication that the company will be able to be profitable every quarter.

"In the current challenging marketing environment, it's likely we will still have some ups and downs on the way to sustained profitability," she said.

For the fiscal year, which also ended Sept. 30, Lucent lost $770 million, or 29 cents per share, down from a loss of $11.8 billion, or $3.49 per share, last year.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2021 State of ITOps and SecOps Report
2021 State of ITOps and SecOps Report
This new report from InformationWeek explores what we've learned over the past year, critical trends around ITOps and SecOps, and where leaders are focusing their time and efforts to support a growing digital economy. Download it today!
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

How SolarWinds Changed Cybersecurity Leadership's Priorities
Jessica Davis, Senior Editor, Enterprise Apps,  5/26/2021
How CIOs Can Advance Company Sustainability Goals
Lisa Morgan, Freelance Writer,  5/26/2021
IT Skills: Top 10 Programming Languages for 2021
Cynthia Harvey, Freelance Journalist, InformationWeek,  5/21/2021
Register for InformationWeek Newsletters
Current Issue
Planning Your Digital Transformation Roadmap
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll