Lucent Technologies Inc. announced Tuesday a reorganization as it also reported increasing wireless revenues. Lucent said it is reorganizing its operations by combining its mobility and wireline business units into a single group, leaving its services business as a separate group.
Patricia Russo, Lucent’s chairman and chief executive officer, said the company will realize speed, innovation and cost and expense structure benefits by integrating resources of the groups. She reiterated the company’s commitment to next-generation optical, Voice over Internet Protocol and mobile high-speed data technologies.
Heading the combined group will be Cindy Christy, formerly president of the company’s Mobility Solutions business. Janet Davidson, who led the company’s wireline business unit, the Integrated Network Solutions group, will become head of corporate strategy and business development. The Worldwide Services unit will continue to be headed by John Meyer.
Lucent also reported financial results for its fiscal second quarter ended March 31.
Revenues were $2.34 billion, an increase of 6 percent from revenues of $2.19 billion during the same period a year ago, but flat with the previous quarter. Revenues in the mobility group were $1.2 billion for the quarter, up 4 percent sequentially and 24 percent compared with the same period last year.
The company reported net income of $282 million, or 6 cents per diluted share, compared with net income of $174 million, or 4 cents per diluted share, in the first fiscal quarter of 2005, and net income of $68 million, or 2 cents per diluted share, during the same period last year.
Second-quarter earnings per share were impacted positively by the favorable resolution of certain tax matters, said the company.
Frank D’Amelio, chief financial officer of the company, said Lucent expects revenues for the fiscal year to increase on a percentage basis in the mid-single-digit range.
In other news, Lucent announced Jeong Kim will rejoin Lucent as president of Bell Labs, succeeding Bill O’Shea, who is retiring.
