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Fool.com: Lucent Reports Earnings, Spin-Off [Breakfast With the Fool] July 20, 2000

Title: Fool.com: Lucent Reports Earnings, Spin-Off [Breakfast With the Fool] July 20, 2000
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"As I grow older, I pay less attention to what men say, I just watch what they do." -- Andrew Carnegie

Lucent Reports Earnings, Spin-Off

By Chris Rugaber (TMF RFK)
July 20, 2000

Lucent Technologies (NYSE: LU) , the world's largest telecom equipment maker, today reported pro-forma earnings per share (EPS) from continuing operations of $0.30, on income of $1.007 billion, a 30% increase from last year's third quarter. Revenue from continuing operations was up 20% to $8.713 billion, compared to $7.245 billion in the year-ago quarter. Including acquisition and other charges and results from discontinued operations, Lucent posted a loss of $301 million, or $0.09 per share, compared to net income of $763 million, or $0.24 per share, in the year-ago period.

Separately, the company also announced plans to spin off its fast-growing microelectronics division, which includes optoelectronics components and integrated circuits. Lucent is planning to sell 20% of the company in an IPO scheduled for the first calendar quarter of next year.

Lucent CEO Richard McGinn noted, "With today's announcement of our spin-off of the microelectronics business, we will create two vibrant new companies positioned to lead in the Internet infrastructure and communications semiconductor markets. The fact is, we are dividing Lucent in order to accelerate growth.... Lucent will now be totally focused on the largest network buildout in history, a $225 billion market opportunity this year."

The company also noted in a press release that it expected fourth-quarter pro forma revenue to grow 15%, and pro forma earnings "roughly in line with revenue growth," which would miss expected earnings of $0.42 per share. In addition, Lucent forecasted a 15% decline in pro forma earnings for the first quarter of 2001.

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A U.S. Food and Drug Administration advisory panel yesterday recommended Rule Maker Pfizer's (NYSE: PFE) developmental Zeldox, a drug for the treatment of schizophrenia, for approval by the full agency. The FDA declined Zeldox for approval in 1998 because of worries about heart rhythm disturbances, but panel members said yesterday that such risks were outweighed by the benefits of an effective treatment for the disease.

Cardiovascular disease treatment developer COR Therapeutics (Nasdaq: CORR) plans to split its stock 2-for-1 on August 15. The Fool has an informative FAQ and discussion board dedicated to stock splits.

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International Business Machines (NYSE: IBM) , the world's largest computer maker, reported greater-than-expected earnings for its second fiscal quarter. EPS rose 15% to $1.06, compared to last year's $0.91. The company credited sales of database software and new server models for the Internet. IBM also said it expects to meet full-year estimated earnings for 2000.

Check out yesterday's Foolish market wrap-up with just one click.

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