MURRAY HILL, N.J. -- Lucent Technologies (NYSE: LU) today reported results for the second quarter of fiscal 2005, which ended March 31, 2005, in accordance with U.S. Generally Accepted Accounting Principles (GAAP). For the quarter, Lucent reported net income of $282 million or 6 cents per diluted share. These results compare with net income of $174 million, or 4 cents per diluted share, in the first quarter of fiscal 2005 and net income of $68 million, or 2 cents per diluted share, in the year- ago quarter.
The company recorded revenues of $2.34 billion in the quarter, flat sequentially and an increase of 6 percent from the year-ago quarter. The company's revenues were $2.34 billion in the first quarter of fiscal 2005 and $2.19 billion in the year-ago quarter.
The second quarter's earnings per share included a positive impact of about 2 cents per diluted share for the favorable resolution of certain income tax matters. Prior quarterly results also were affected by tax items, as well as certain other items, including the revaluation of the warrants issued as part of Lucent's global settlement of shareowner litigation, the reversal of certain payroll-related liabilities, and bad debt and customer financing recoveries. These items had an impact of less than 1 cent per diluted share in the first quarter of fiscal 2005 and a negative impact of 1 cent per diluted share in the year-ago quarter.(1)
EXECUTIVE COMMENTARY
"This quarter, we continued to achieve profitable results and further demonstrated our strength in mobility, posting our highest quarterly revenues for wireless since fiscal 2002," said Lucent Technologies Chairman and CEO Patricia Russo. "We also continued to show strength in our services business, with close to half a billion dollars in revenues, and we continue to invest in areas that are critical to our business such as next-gen optical, VoIP and mobile high-speed data, as well as services, government and emerging markets.
"Looking ahead at how we can best meet our customers' demand for converged services while continuing to improve our overall productivity, today we announced that we will combine the company's mobility and wireline businesses into a single unit headed by Cindy Christy," said Russo. [See separate news release.] "This new alignment is a logical next step for us and a natural extension of the common platform development work we have had under way to improve our time to market, efficiency and cost structure. It will enhance our ability to deliver the solutions that support the new services our customers want, and it will better enable us to standardize our processes and product platforms consistent with an IMS-based architecture. It will also build on our strongest assets and capabilities to address the growth opportunities in the marketplace."
Lucent Technologies Inc.