Earnings Roundup: Compaq, Lucent, SCO Surpass Expectations - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Earnings Roundup: Compaq, Lucent, SCO Surpass Expectations

Compaq posted third-quarter revenue of $9.2 billion, up 5% over the third quarter of 1998. Net income for the quarter, which ended Sept. 30, was $117 million, or 7 cents a share, surpassing the expectations of Wall Street analysts who predicted earnings of about 5 cents per share. The results don't include an $868 million restructuring charge or $1.2 million in proceeds from Compaq's sale of the AltaVista search engine earlier this year. Revenue from Compaq's commercial PC group fell 16% to $2.7 billion. However, Compaq president and CEO Michael Capellas said the company will address those challenges by launching products that are more closely attuned to the needs of Web-enabled enterprises, noting that the company will shift much of its focus in the corporate market to thin clients and devices that allow wireless connections to the Internet. Capellas also noted the company is on pace with a previously announced cost-cutting plan that includes staff cuts of up to 7,000 positions. - Paul McDougal

Telecommunications products and services vendor Lucent Technologies reported higher-than-expected earnings for its fourth-quarter ending Sept. 30. Lucent recorded a 23% increase in revenues, to $10.6 billion, compared with year- ago fourth-quarter revenue of $8.6 billion. Net income rose to $948 million or 30 cents per share, vs. $220 million or 7 cents per share for the year-ago quarter. For fiscal 1999, revenues increased 20% to $38.3 billion, vs. revenues of $31.8 billion in fiscal 1998. Net income rose to $4.8 billion or $1.52 per share for the fiscal year, compared with $2.6 billion or 86 cents per share for fiscal 1998. Lucent also announced the formation of four core businesses that will operate under one brand with the support of Bell Labs technology. Service Provider Networks, Enterprise Networks, NetCare Professional Services, and Microelectronics and Communications Technologies, will help Lucent capitalize on opportunities in the communications networking space company officials say. - Tischelle George

Unix vendor the Santa Cruz Operation reported that, for the fourth fiscal quarter of 1999 ended Sept. 30, revenues reached a record $58 million, a 20% increase over the $49 million reported in the fourth quarter a year ago. Net profit for the quarter was $5 million or 16 cents per basic share, a 100% increase over the net profit of $2.6 million, or 8 cents per share, in the same period last year. Revenues for the fiscal year ended Sept. 30 grew 30% to $224 million, compared with $172 million for the same period last year. Net profit for 1999 was $17 million, or 49 cents per basic share, and 46 cents per diluted share, compared with a net loss of $15 million, or 41 cents per share, basic and diluted, for fiscal 1998. "The exponential growth of the Internet and the need to access data anytime from anywhere has given the industry an insatiable appetite for server- centric computing," said Doug Michaels, president and CEO of SCO, in a statement. - John Soat

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of IT & Cybersecurity Operations 2020
The State of IT & Cybersecurity Operations 2020
Download this report from InformationWeek, in partnership with Dark Reading, to learn more about how today's IT operations teams work with cybersecurity operations, what technologies they are using, and how they communicate and share responsibility--or create risk by failing to do so. Get it now!
Commentary
The Best Way to Get Started with Data Analytics
John Edwards, Technology Journalist & Author,  7/8/2020
Slideshows
10 Cyberattacks on the Rise During the Pandemic
Cynthia Harvey, Freelance Journalist, InformationWeek,  6/24/2020
News
IT Trade Shows Go Virtual: Your 2020 List of Events
Jessica Davis, Senior Editor, Enterprise Apps,  5/29/2020
Register for InformationWeek Newsletters
Video
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll