Quotes from the Lucent and Motorola conference calls

Includes: GOOG, LU
by: David Jackson

All quotes are from the CCBN StreetEvents transcripts:

Lucent (LU)

We increased our revenues 7 percent to just over 9 billion; we improved our gross margin rate by 11 points to 42 percent; we reduced our total operating expenses from about 2.9 billion to about 2.6 billion;

we improved our operating income year-over-year by 1.4 billion and our net income by approximately 1.9 billion. We dramatically improved our cash position, generating cash from operations of 634 million… and that's a swing of almost 1.6 billion.

…we believe that the high-speed mobile data and low-cost voice opportunities will continue as a catalyst in the mobility market. We are benefiting from our strong position there, both with our installed customers and through our clear global CDMA leadership position as we work opportunities in the emerging markets.

..the Wireline market …in the optical market, the decline in spending on legacy products is being more than made up with the spending on Next Generation solutions… however…spending declines in the traditional circuit-switching market are clearly outpacing growth in Next Generation products such as Voice-over-IP.

Sequentially, revenues in the U.S. increased approximately 3 percent to 1.4 billion, while international revenues increased 22 percent to 959 million.

Motorola (MOT)

…highlights of the quarter… 26% sales growth year-over-year, gross margin improvement of 220 basis points year-over-year, earnings growth of 313% year-over-year, operating margin of 9.9%…

…our handset business… sales growth was 34% year-over-year. We maintained and actually increased our ASPs quarter-over-quarter. Our customer field inventories of our products are very low. Our operating earnings are staying at 10%...

… personal communication sector… Sales were up 34%…versus last year…

Motorola channel inventories remain very lean. Now our channel inventory position going into Q4 is in the lowest level in many years.

Our strongest gains during the quarter were in Latin America and Europe compared to last year and sequentially the strongest growth was in North America.

…our guidance for the fourth quarter of 2004 is sales of $9.3 to $9.6 billion, which represents 16 to 20% increase over the fourth quarter of 2003.