AT&T 3rd-quarter net plunged 75% on weak equipment, computer results
Article Abstract:
AT&T's 3rd qtr 1995 earnings fell 75% because of weak equipment sales, a result that vindicates the company's decision to split into three companies. Total company revenue increased only 5.7% to $19.7 billion, up from 1994's $18.65 billion, and net income dropped to $262 million, down from the $1.05 billion made in 3rd qtr 1994. The 1994 figure includes a $230 million charge for the purchase of McCaw Cellular Communications. AT&T's $1.17 billion 3rd qtr 1995 charge covers the cost of revamping its ailing Global Information Solutions computer unit. Communications-services revenue increased to $12.09 billion, a 7.2% increase, and gross profit margins increased 2.5% to 46%. Cellular subscriptions increased by 38%, and wireless services revenues showed 28% growth. The Network Systems Div showed an unexpected 6% drop in revenue, advancing total systems and product revenue growth by 1.5%.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1995
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WorldCom posts $142.9 million of net, meeting analyst forecasts
Article Abstract:
WorldCom's 4th qtr 1997 profit of $142.9 million met analysts' earnings forecasts despite absorbing several major acquisitions in 1997. By comparison, the telecommunications carrier posted a 4th qtr 1996 loss of $2.14 billion related to an acquisition. WorldCom's long-distance, local, Internet and international businesses produced significant increases in revenue, traffic and profit margins. Its core communication-services business revenue jumped by 30%, featuring a 32% traffic increase. AT&T's revenue, meanwhile, remained unchanged. WorldCom's net income for the 4th qtr 1997 totaled 15 cents per diluted share, while basic earnings also amounted to 15 cents. The Jackson, MS-based company's revenue grew from $1.23 billion in 1996 to $2 billion in 1997, which represents a 62% improvement.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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AT&T net rises, but calls, revenue growth are weak; earnings increase by 14% in first report to show company after spinoffs
Article Abstract:
AT&T posts a 14% increase in earnings for 1st qtr 1996, the first fiscal quarter in which the company did not include its formerly-associated computer and telecommunications equipment divisions in the calculations. However, AT&T achieves these results despite revenue growth of just 5% and a long-distance traffic increase of only 7.7%, approximately half the percentage that MCI and Sprint have posted. AT&T's management has been subject to shareholder criticism regarding chairman Robert Allen's high annual compensation and the reported 40,000 employees that would be released because of the company spinoffs. Analysts suggest that AT&T will face increasingly legitimate competition from long-distance carriers, as the effects of the Telecommunications Act of 1996 continue to unfold.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
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