Lucent results

Lucent posts 1Q06 net income of $181m (down32% ) on revenues of $2.1bn (down 8%). While US revenues was almost flat (+3%) but accounted for 70% of total revenues, non-US revenues were down 28%. Most critical regional revenues were in APAC where sales fell by 49% in the quarter and in EMEA with a 14% decline. In APAC, declines in PHS sales in China was given as a reason for slide in Chinese sales, while in North America slower-than-anticipated wireless deployments has hit US sales. While product sales declined 12%, services sales increased by 5%. Wireless solutions declined 18% to $1bn; multimedia solutions increased 8% to $388m; and converged core solutions slightly decreased by 2% (again dragged down by products (-21%)) to $699m. Some positive items in the report: operating expenses were down (-4%) and margin were up: gross margin and operating reached respectively 43% (+1 point) and 12% (+1 point). As of March 31, 2006, Lucent had $4bn in cash and marketable securities.