Lucent Technologies beat Wall Street estimates today with third quarter earnings of $0.32 cents a share and a two-fold increase in net income.
The Murray Hill, NJ-based company said net income doubled to $435 million compared to $213 million or $0.17 a share for the same period a year ago.
Investors on Wall Street embraced the Lucent earnings news today–in early morning trading it was one of the tech sector’s hottest stocks (NYSE:LU) trading at 104 15/16, up 2/13/16 as of 9:52 EST.
Third quarter revenues of $7.2 billion represented a 19.2% surge on continuing operations, and 14% on the consolidated business, compared with the 1997 third quarter revenues of $6.3 billion.
Lucent’s acquisition of ATM network firm Yurie Systems and cell phone software provider Optimay resulted in one-time, after-tax charges of $620 million and $48 million, respectively.
Net losses of $233 million or 17 cents a share were recorded. Quarterly results include a $50 million, pre-tax (or $32 million, after-tax) reversal of business restructuring charges, which were reported in December 1995.
“This was another quarter of solid growth,” said Richard McGinn, Lucent Technologies chairman and chief executive officer. “More importantly, we’re building momentum as we accelerate Lucent’s investment in technologies that will shape communications networks for the next millennium.”