Lucent Tops Earnings Forecasts

Lucent Technologies Inc. reported third-quarter profits that came in well above analysts' expectations.

The telecommunications and network equipment maker said Wednesday it earned $435 million, or 32 cents a share, excluding acquisition charges. The results were more than double year-ago earnings of $213 million, or 17 cents a share. Third-quarter sales rose 14 percent to $7.2 billion from $6.3 billion in the same period a year ago. The consensus estimate of analysts surveyed by First Call was 27 cents a share.

"This was another quarter of solid growth," said Richard McGinn, chairman and chief executive.

Lucent shares, which gained 1 7/8 to 104 in early trading, have risen 12 percent, since the beginning of the week.

The company cited strong revenue growth and higher gross margins for the successful quarter. Gross margin increased to 45.4 percent from 41 percent in the third quarter of 1997, due to an improved product mix and cost management, the company said.

Lucent achieved solid growth across all business operations. Network equipment revenue rose 16.6 percent year-over-year, reflecting the company's aggressive moves into the data networking market. Business communications systems sales rose 28 percent and microelectronics revenue increased 7.1 percent.

Written By Binti T. Harvey