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Apr-23-2008

Wireless Unit Lifts AT&T; Profit 22%

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CONTENTS:

AT&Ts; revenue grew 6.1 percent from a year ago to $30.7 billion, but that growth covered a shift within the companys business lines. (More...)
In accordance with purchase accounting rules, deferred revenues and expenses for all BellSouth directories delivered prior to the close of the merger were eliminated from 2007 consolidated results. (More...)
Sprint added 35 cents to $7.05. (More...)
Bloggers, analysts and industry observers alike have expressed the belief - or perhaps just hope - that one is forthcoming. (More...)
Adjusted earnings for the latest quarter, which exclude merger-related amortization expenses and costs associated with a workforce reduction, increased 10.3% to $4.5 billion from $4.1 billion in the year-ago quarter. (More...)
On the enterprise side, revenues rose 1.2 percent from a year ago. (More...)
Most of the reductions are being made at the management level, and the company said overall employment will remain steady in 2008 as it adds workers in "growth areas." (More...)
On one end, the wireless business continues to perform well, shrugging off economic worries and concern that the base of potential new customers is shrinking. (More...)
Like in the fourth quarter, AT&T; is beginning to rely more on pre-paid business, either directly or through resellers. (More...)
The faster model may debut in June, analysts at Sanford C. Bernstein & Co. and Piper Jaffray & Co. have said. (More...)
Q2 guidance: $31.25 billion revenue/78 cents adjusted EPS Street consensus. (More...)
Enterprise revenues increased 1.2% from the previous-year quarter, led by a 22.9% increase in enterprise IP data revenue. (More...)
The turnover rate for customers who sign long-term contracts dipped to 1.2% from 1.3%. (More...)
Thinking internally about target or goal on churn? On flow share on wireless? iPhone meaningful impact? In terms of wireless churn: We're pleased with churn. (More...)

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AT&Ts; revenue grew 6.1 percent from a year ago to $30.7 billion, but that growth covered a shift within the companys business lines. Revenue from its wireline voice service dropped 7.1 percent to $9.7 billion, while wireless revenue increased 17.1 percent to $10.6 billion. The exclusive U.S. carrier for Apple Incs iPhone, said it increased its wireless subscribers by 1.3 million in the quarter. [1] The San Antonio- based company said that net income in the first quarter rose to $3.46 billion, or 57 cents a share, from $2.85 billion, or 45 cents, a year earlier. Sales were in line with the analysts''' estimates as they climbed 6.1 percent to $30.7 billion. AT&T; earnings were pulled down by $1.2 billion in noncash charges related to its various mergers and $374 million in costs related to its recent layoffs. The company said on Friday that it would do away with 4,650 jobs or 1.5 percent of its work force. After deducting these nonrecurring charges, AT&T; earned 74 cents a share, exactly what was expected by the analysts.[2] According to the profit report released on Tuesday, AT&T;, the exclusive U.S. carrier for Apple Inc's iPhone, posted a revenue increase of 6.1 percent to $30.7 billion. Excluding items, such as the costs linked to the merger and severance charges for recently-announced layoffs, United States largest phone company's stock grew 74 cents per share, up from 65 cents a share earning during the same quarter of the past fiscal year.[3] AT&T; said quarterly profit rose 21.5 percent to $3.46 billion, or 57 cents per share, from $2.85 billion, or 45 cents a share, in the same quarter a year earlier. Profit before items, such as merger-related costs and severance charges for recently announced job cuts, totaled 74 cents a share and matched analyst expectations. "It's pretty impressive to see their revenue growth continue at an increasing rate," said Edward Jones analyst Rick Franklin.[4] AT&T;'s first-quarter profit rose to $3.46 billion, or 57 cents a share, from $2.85 billion, or 45 cents a share, in the same quarter a year earlier. Profit before items, such as merger-related costs and severance charges for recently-announced job cuts, totaled 74 cents, matching the average estimate as compiled by Reuters Estimates. Stifel Nicolaus analyst Christopher King said he had expected stronger results from AT&T;'s wireless business.[5] AT&T;'s first-quarter profit rose to $3.46 billion, or 57 cents a share, from $2.85 billion, or 45 cents a share, in the same quarter a year earlier. Stifel Nicolaus analyst Christopher King said he had expected stronger results from AT&T;'s wireless business. "Overall, I think it was largely in line, but not a great quarter -- And wireless net adds were less than expected," he said.[6]

AT&T;'s first-quarter profit was up 22% compared with the same period last year, with net income increasing to $3.46 billion from $2.85 billion from the first quarter of 2007. AT&T; has been losing landline customers to cable, and attempted to make up for those losses by cutting the price of the iPhone (AT&T; is the exclusive carrier for iPhone) in September 2007 and thus increase its mobile profits. That strategy seems to have worked: AT&T; added 1.3 million wireless customers in the first quarter.[7]

Wireless ARPU for Q1 2008 was $50.18, up 2.0 percent over the year-ago quarter--according to AT&T;, wireless service ARPU has now posted year-over-year growth across seven consecutive quarters. AT&T; posted first-quarter wireless data revenues of $2.3 billion, up 57.3 percent versus Q1 2007--crediting increases in web access, email, messaging, data access and media bundles for the growth, the operator said data now represents 21.5 percent of its total wireless service revenues, up from 16.0 percent in the first quarter of 2007 and 10.9 percent in the first quarter of 2006. AT&T; subscribers sent more than 620 million multimedia messages and 44 billion text messages during Q1, both figures doubling year-ago totals.[8] AT&T; is the premier provider for enterprise customers, delivering networking services and solutions to multinational corporations, U.S. governmental agencies and regionally based domestic companies. -- Continued Solid Regional Business Growth. AT&T;'s total regional business revenues increased 2.6 percent in the first quarter to $3.2 billion, with continued growth in both voice and data services.[9]

Data now represents 21.5 percent of AT&T;'s total wireless service revenues, up from 16.0 percent in the first quarter of 2007 and 10.9 percent in the first quarter of 2006. During the first quarter, AT&T;'s wireless customers sent more than 620 million multimedia messages and 44 billion text messages, both volumes more than double totals in the year-earlier first quarter.[10] AT&T; also reported a 57.3% upside in wireless data revenues to $2.3 billion, driven by robust increases in Internet access, e-mail, messaging, data access and media bundles. The company noted that data now represents 21.5% of its total wireless service revenues, up from 16.0% in the first quarter of 2007.[11]

AT&T; reported first quarter net income of $3.5 billion, or 57 cents a share, on revenue of $30.7 billion, up 6.1 percent from a year ago.[12] Reported Results: Ramp in Revenue Growth, Net Income Growth For the quarter ended March 31, 2008, AT&T;'s revenues totaled $30.7 billion, up 6.1 percent versus reported results in the year-earlier quarter and up 4.6 percent compared with first-quarter 2007 pro forma revenues, which exclude merger-related accounting impacts on directory revenues. This marks a substantial step up from year-over-year pro forma revenue growth of 2.9 percent in the fourth quarter of 2007 and 1.7 percent in the first quarter of 2007.[9]

NEW YORK, April 22 (Reuters) - AT&T; Inc (T.N: Quote, Profile, Research ) on Tuesday posted a higher profit on wireless growth, but a fall in traditional phone users accelerated and some analysts said the top U.S. phone company may yet be hurt by a weaker economy. Analysts said they were impressed by gains in first-quarter revenue, which rose 6.1 percent from a year earlier to $30.7 billion and came in above an average Wall Street forecast of $30.6 billion, according to Reuters Estimates.[4] Data revenue grew more slowly, rising 6 percent to $6.2 billion. Both AT&T; and rival Verizon Communications Inc are relying on mobile phone sales for growth as traditional home phone users continue to decline. The San Antonio-based company CEO, Randall L. Stephenson, said the carrier will continue to seek ways to cut costs and focus its business on its wireless and data services.[1] Excluding charges, AT&T; reported earnings of 74 cents a share, which matched estimates. Wireless growth fueled the quarter for AT&T.; The company said its wireless revenue was up 18.3 percent to $11.8 billion.[12] San Antonio-based AT&T; (NYSE: T) reported net income of $3.5 billion, or 57 cents per diluted share, on revenue of $30.7 billion for the quarter ended March 31. This compares to net income of $2.8 billion, or 45 cents per diluted share, on revenues of $29 billion for the same period a year ago.[13] AT&T;'s adjusted first-quarter 2008 net income totaled $4.5 billion, up 10.3 percent from $4.1 billion in the year-earlier first quarter, and adjusted earnings per diluted share totaled $0.74, up 13.8 percent from $0.65 in the first quarter of 2007.[10] Additional Background on Adjusted and Pro Forma Results AT&T;'s adjusted earnings for the first quarter of 2008 exclude: (1) noncash, pretax amortization costs related to acquisitions totaling $1.2 billion, or $0.13 per diluted share, and (2) a charge of $374 million, or $0.04 per diluted share, associated with a workforce reduction previously disclosed in a Form 8-K filing.[9] On an adjusted basis, the company's earnings per share increased 13.8% and came in line with Wall Street analysts' consensus estimate. Last week, AT&T; said that it plans to cut its workforce by about 1.5% in a further attempt to streamline operations and added that this would lead to a pre-tax charge of $374 million in the first quarter.[11]

In the first quarter, ATT customers sent 44 billion text messages, twice the number a year ago. The company also added a net of 148,000 customers for its U-verse television service, giving it 379,000 total subscribers. It said it hoped to have 1 million subscribers by the end of the year. After its results were announced, ATT's shares rose by 1.3 percent to $37.59 before-market trading.[14] Total high speed Internet connections, which include DSL, U-verse enabled AT&T; High Speed Internet and satellite broadband services, increased by 491,000, and AT&T; ended the quarter with 14.6 million consumer and business high speed Internet connections, up 1.8 million, or 13.9 percent, over the past year. -- Accelerated Ramp in AT&T; U-verse TV Services. Growth in AT&T; U-verse TV service, the company's next-generation IP-based video service, continued its strong ramp during the first quarter, achieving a net subscriber gain of 148,000 to reach 379,000 in service. AT&T; expects a further ramp in the quarters ahead and is on track to reach its target of more than 1 million subscribers by the end of 2008.[9]

Even after shutting off service to about 330,000 wireless subscribers who were using an older technology, customer turnover, or churn, was unchanged from a year earlier at 1.7 percent. AT&T; had almost 2 million iPhone users on its network at the end of last year. While Apple plans to sell a new iPhone this year that offers faster Internet download speeds, demand for the current model was "pretty stable'' last quarter, Chief Financial Officer Rick Lindner said in an interview. He declined to say how many of the handsets AT&T; activated last quarter. Profit, excluding costs such as acquisition expenses, was 74 cents a share, meeting the average estimate of 22 analysts in a Bloomberg survey.[15] More than 40 percent of iPhone buyers are new AT&T; customers, and the average user of the Apple handset spends more than $90 a month on wireless service, including Internet access, text messaging and other features, Lindner said. That compares with the $50.18 average for all of AT&T;'s wireless customers. Mobile-phone customers spent 21.5 percent of their monthly bills on data services such as text messaging and Internet access, up from 16 percent a year ago.[15]

The wireless unit contributed the most to the bottom line it recorded $11.8 billion in sales and added 1.3 million net users for a total of 71.4 million, more than any other carrier in the United States. Wireless fared well thanks to AT&T;'s exclusive contract with Apple Inc. for the iPhone and because of ever-increasing demand for mobile data services such as Internet and e-mail.[16]

AT&T; said a ramp-up in video services and broadband nearly offset the falloff in revenue from voice customers. It added 491,000 broadband customers in the quarter, for a total of 14.6 million, and 148,000 customers for its U-verse video service, which is delivered over phone lines. The company said it was well on its way to meeting its goal of 1 million U-verse customers by the end of the year. AT&T; started raising prices for DSL service by $5 per month in February, and those increases are spreading across the service area, but demand is still "solid," Lindner said.[17] Regional consumer revenue connections were 49.3 million, which was flat with the same period last year. Total regional business revenues increased 2.6% to $3.2 billion, with continued growth in both voice and data services. The company said its broadband revenues grew 13.2% in the quarter to $1.4 billion.[11] The growth pushed the carrier's service revenues to $10.6 billion for the quarter; AT&T; Mobility noted data services accounted for $2.3 billion, or 21.5%, of total service revenues.[18]

Results included: -- Further Step Up in Enterprise Growth. Driven by solid demand and a strong record of contract wins, AT&T; delivered further improvement in enterprise revenue growth in the first quarter, led by a 22.9 percent increase in enterprise IP data revenues, including areas such as virtual private networks, managed Internet services and hosting. Total enterprise revenues continued their ramp and were up 1.2 percent versus results for the first quarter of 2007. This compares with year-over-year pro forma declines of 2.0 percent in the fourth quarter of 2007 and 3.9 percent in the first quarter of 2007.[9] AT&T; reported broadband revenue growth of 13.2 percent, to $1.4 billion, from the first quarter of 2007.[19] Commenting on the results, Randall Stephenson, chairman and chief executive officer of AT&T; said, 'We delivered an excellent first quarter and a solid start to the year. AT&T;, the exclusive provider of Apple Inc.' s (AAPL) iPhone, said its wireless operations generated revenues of $11.83 billion, up 18.3% from $10.00 billion in the prior-year quarter.[11] AT&T;'s iPhone pact with Apple made for a fruitful quarter at Ma Bell. Although its traditional voice phone call business is sliding towards oblivion, AT&T;'s mobile phone business was up 18.3%, to $11.8 billion, or more than a third of the company's overall revenue. AT&T; is prospering from its agreement to be the U.S. service provider for the popular Apple (nasdaq: AAPL - news - people ) iPhone.[20]

"Through the first quarter, it was pretty stable" in terms of sales, Lindner said. The company's wireline operations, by contrast, decline 2 percent in both earnings (to $2.8 billion) and revenue ($17.6 billion). A filing with the Securities and Exchange Commission detailed ATT's plan to lay off about 1.5 percent of its workforce, with an ensuing pretax charge of $374 million for the first quarter.[21] Analysts expect the company to report earnings of $0.10 per share on revenues of $3.42 billion. Sprint Nextel Corp. (S) is scheduled to report its financial results for the first quarter on May 12, 2008.[11] Adjusted results for the first quarter of 2007 excluded: (1) pretax merger-related integration costs totaling $245 million, or $0.02 per diluted share; (2) noncash, pretax merger-related costs totaling $1.8 billion, or $0.18 per diluted share; (3) a merger-related directory accounting impact of $301 million, or $0.03 per diluted share; and (4) a gain of $409 million, or $0.04 per share, from wireless transactions.[9]

The company'''s profit grew to $3.46 billion, or 57 cents per share in first quarter as compared to $2.85 billion, or 45 cents a share in the same quarter a year earlier.[22] The San Antonio, Texas-based phone company said it reported a first-quarter profit of $3.46 billion or 57 cents per share, a significant increase from $2.85 billion or 45 cents a share in the same quarter a year earlier.[3] The country's largest telecommunications company said Tuesday it earned $3.46 billion, or 57 cents per share, in the quarter, compared with $2.85 billion, or 45 cents per share, a year ago.[23] San Antonio-based AT&T; (NYSE: T) said earnings for the quarter ended March 31 rose to $3.46 billion, or 57 cents per share, from $2.85 billion, or 45 cents per share, a year ago.[24]

The company earned $3.5 billion, or 57 cents a share, compared with $2.85 billion, or 45 cents a share, a year ago. ATT's earnings were reduced by $1.2 billion in noncash charges related to its various mergers and $374 million in costs related to its recent layoffs. ATT said it would eliminate 4,650 jobs or 1.5 percent of its work force. After deducting these nonrecurring charges, ATT earned 74 cents a share, exactly what analysts estimated.[14]

AT&T;'s operating profit margin from wireless service rose to 41.7 percent from 38.9 percent a year ago, leaving out depreciation and amortization. "They're definitely getting a better reputation of having a higher-end user,'' said Jennifer Fritzsche, an analyst at Wachovia Securities Inc. in Chicago. She expects the shares to outperform the broader market. "The more-savvy wireless user is walking into their stores.'' Stephenson, 48, is using the $86 billion BellSouth purchase to cut 10,000 jobs in overlapping functions such as marketing and technology.[15] AT&T; ( T ) on Tuesday reported first-quarter results in line with analyst expectations, fueled by a 17% rise in wireless service revenue. The telecom service provider said its first-quarter profit, minus special items, jumped 14% from a year earlier to 74 cents a share.[25]

San Antonio -- AT&T; Inc. today reported strong first-quarter results, highlighted by a significant ramp in consolidated revenue growth, led by improved results in wireless and enterprise, and further expansion of wireless and consolidated margins. This marked AT&T;'s 12th consecutive quarter of double-digit growth in adjusted earnings per share.[10]

"Revenue growth continues to ramp, we have good momentum across key growth areas, major cost initiatives are on track, and our operational results reinforce the confidence we have in our outlook." AT&T; said it had a net gain of 1.3 million wireless subscribers in the quarter, taking its total customer count to 71.4 million.[26] "We delivered an excellent first quarter and a solid start to the year," said Randall Stephenson, AT&T; chairman and CEO. "Revenue growth continues to ramp, we have good momentum across key growth areas, major cost initiatives are on track, and our operational results reinforce the confidence we have in our outlook."[27] That translates to margins on an earnings before interest, taxes, depreciation and amortization basis in the mid-30% range, he said during a conference call, adding he was "comfortable" with the expectations. The quarter saw higher costs stemming from storms and bad weather in the South and Midwest territories, he said. The second half of the year should see improving margins, particularly as the company realizes the savings from merger cost reductions and the recently unveiled job cuts, he said. The second quarter should see the benefits from a restructured agreement with Yahoo Inc. (YHOO), he said. One of the growth drivers for AT&T; is its U-verse video service. Lindner said the company was ahead of its plans in the first quarter. "We're on a good trajectory we expect to continue in the second and third quarters," he said.[28] Lindner, however, reaffirmed the company's expectations to analysts on a conference call. The recent job cuts and further merger cost reductions would help results in the second half, while a restructured deal with Yahoo Inc. (YHOO) would start to benefit results in the second quarter, he said. Storms and bad weather increased costs in the first quarter, hurting margins, he added. Last week, AT&T; announced plans to lay off 4,600 mostly white-collar employees, or about 1.5% of its work force, as part of a reorganization of its shrinking landline phone business. The company intends to hire back about the same number of people in jobs related to its expanding wireless, television and broadband services in coming months.[29]

AT&T; Inc., the largest U.S. telephone company reported a jump of 22 percent in the first quarter owing to a rapid growth of its wireless business that countered the drop in traditional phone subscriptions.[2]

On a reported basis, AT&T;'s first-quarter wireless operating expenses totaled $8.9 billion, and operating income was $3.0 billion, up 94.1 percent from $1.5 billion in the first quarter of 2007.[10] Compared with results for the year-earlier first quarter, AT&T;'s adjusted operating expenses for the first quarter of 2008 totaled $23.2 billion, versus $22.4 billion; adjusted operating income was $7.6 billion, up from $7.0 billion; and AT&T;'s adjusted operating income margin was 24.6 percent, up from 23.7 percent.[10] On an adjusted basis, wireless operating expenses, which exclude merger-related costs, totaled $8.3 billion, and operating income was $3.5 billion, up 38.5 percent from $2.5 billion in the first quarter of 2007. -- Wireless Margin Expansion.[9]

AT&T;'s first-quarter wireless OIBDA service margin was 41.7 percent, the highest ever achieved by the company's wireless segment, up from an unadjusted 37.5 percent and an adjusted 38.9 percent in the year-earlier first quarter. (OIBDA service margin is operating income before depreciation and amortization, divided by total service revenues.)[10]

Wireless data sales shot up more than 57 percent compared to the first quarter of 2007. AT&T; isn't taking its advances for granted. The Texas-based conglomerate next will upgrade its network, using its spectrum holdings, to better compete with cablecos they keep luring voice, video and data subscribers away from the telcos. In 2008, AT&T; will integrate its 850MHz spectrum with its 3G network. AT&T; was using the 850MHz band for TDMA; it cut off 330,000 customers from the outdated service earlier this year.[16] Wireless data, including e-mail, messaging and data access, now represents 21.5 percent of AT&T;'s wireless revenue not including handset and accessory sales, up from 16 percent in the first quarter of 2007 and 10.9 percent in the first quarter of 2006, the company said.[19]

Wireless data revenues grew 57.3 percent versus results in the year-earlier first quarter to $2.3 billion, reflecting robust increases in Internet access, e-mail, messaging, data access and media bundles.[10]

The exclusive U.S. wireless provider for Apple's iPhone said wireless sales were up 18 percent to $11.8 billion and that it ended the first quarter with a nation-leading 71.4 million mobile customers.[30] AT&T; saw wireless sales increase 18% to $11.8 billion. As the leading wireless provider in the U.S., AT&T; has cemented their lead by ending the quarter with 71.4 million mobile customers.[31]

Apple is expected to release a 3G iPhone in June, which is sure to reinvigorate iPhone hysteria, pushing it into more enterprise apps as well. AT&T; also said it will spend $7 billion over the next five years to beef up its network so it can offer faster Internet speed and better television services. Its U-verse service has added 148,000 customers and is now at 379,000 users, nearly 40 percent of the way to its goal of 1 million users by year end.[27] AT&T; lost 1.6 million primary residential lines in 2007. To compete with cable rivals such as Comcast Corp., the company is spending $7 billion on network upgrades over five years to offer speedier Internet connections and television service. AT&T; reiterated its forecast for more than 1 million U-verse customers by the end of the year.[15] Primary retail consumer access lines fell 6.2% year-on-year. It is also selling high-speed Internet and video services to retain customers and compete with cable service providers. The company said high-speed Internet connections among its consumer and business customers rose 13.9% from a year earlier to 14.6 million. AT&T; was formed through a series of mergers including SBC and BellSouth, and analysts have said savings from those mergers has also been boosting its earnings growth in the past few years.[5]

Stephenson was unavailable to comment before the earnings report, AT&T;'s Cook said. It would take as much as a year for corporate spending cuts to hurt AT&T;'s earnings, said Lisa Pierce, an analyst with Forrester Research Inc. in Cambridge, Massachusetts. AT&T;'s enterprise contracts normally guarantee a minimum revenue target in exchange for lower prices, and agreements often run for more than one year, she said. Investors won't wait that long if they detect signs of trouble, said Todd Rosenbluth, an equity analyst at Standard & Poor's in New York. When Stephenson said in January that some residential customers weren't paying their bills, AT&T;'s stock had its biggest one-day drop in five years. "It sells off more under fear than it rises when nothing comes to fruition,'' said Rosenbluth, who advises buying the shares because of the company's cash balance, dividends and ability to cut operating costs.[32] AT&T; climbed 22 cents to $37.81 at 4 p.m. in New York Stock Exchange composite trading. The shares have declined 9 percent this year. The stock's 7.8 percent drop in the first quarter was its biggest since 2005.[15] AT&T; rose 8 cents to $37.59 at 4 p.m. on the New York Stock Exchange. While the shares have recovered after dropping as low as $32.95 this year, they are down 9.6 percent in 2008. Their first-quarter decline of 7.8 percent was the worst quarterly drop since 2005.[32]

AT&T; (nyse: T - news - people ) reported first-quarter earnings of $4.5 billion, or 74 cents a share, up 9.8% from $4.1 billion, or 65 cents a share, in the same period a year ago.[20] AT&T; reported that earnings per diluted share rose by 26.7 percent over the first quarter a year ago.[13] Retail postpaid net adds totaled 705,000 in the first quarter, up 3.7 percent versus net adds in the year-earlier first quarter. -- Strong Gross Adds. AT&T; continued its strong record of wireless subscriber flow share with 5.0 million first-quarter gross subscriber additions, up from 4.3 million in the year-earlier first quarter.[9] AT&T; said Tuesday that it ended the first quarter with 71.4 million wireless subscribers and a retail churn of 1.2 percent. The telecommunications giant detailed its wireless stats on its first quarter earnings report ( statement ).[12]

AT&T; has now posted seven consecutive quarters of year-over-year growth in wireless service ARPU, which was $50.18 in the first quarter, up 2.0 percent versus the year-earlier first quarter.[10] Revenue growth was driven by strong subscriber gains and continued improvement in Average Monthly Revenue per User, or ARPU. Wireless service ARPU, was $50.18 in the first quarter, up 2.0% from last year.[11] The carrier also witnessed a 30% increase in equipment revenues during the quarter, which pushed total revenues up more than 18% to $11.8 billion during the quarter. The strong growth boosted the carrier's income from $1.5 billion during the first quarter of 2007 to $2.9 billon this year.[18] Total wireless revenues increased 18% when compared with the first quarter of last year to $11.8 billion.[33]

AT&T;'s broadband revenue was up 13.2 percent in the first quarter to $1.4 billion.[12] Cash From Operations, Share Repurchases Compared with results in the year-earlier first quarter, AT&T;'s cash from operating activities for the first quarter of 2008 totaled $5.0 billion, up from $4.6 billion; capital expenditures totaled $4.2 billion, versus $3.3 billion; and free cash flow (cash from operations minus capital expenditures) totaled $0.7 billion, compared with $1.3 billion. As it invests in the future of its business, AT&T; continues to return substantial value to shareowners through dividends and share repurchases.[9] Regional consumer revenues totaled $5.5 billion, down 0.4 percent versus results for the year-earlier first quarter.[9] Wall Street analysts expected revenues of $30.70 billion for the quarter. Among the company's peers, Quest Communications International Inc. (Q) is slated to report its financial results for the first quarter on May 6, 2008.[11]

The company's wireless services revenue rose 18 percent for the quarter to $11.8 billion.[24] The company's wireless data revenue increased 57 percent to $2.3 billion. The company also continued to grow its AT&T; U-verse TV subscriptions.[24] Wireless data was particularly strong, the company said, with revenue increasing 57 percent to $2.3 billion. That now represents 22 percent of the total wireless revenue, up from 16 percent a year ago.[14] ATT's revenue grew 6 percent from a year ago to $30.7 billion, but that growth masked quite a shift among the company's business lines.[14] Wireline profit fell 2 percent, to $2.8 billion. Craig Moffett, an analyst with Sanford C. Bernstein, wrote in a note to clients that he was concerned that the accelerating loss in the wireline business could destabilize the company, despite the growth in cellphone profit. "More than ever, wireless is ATT's engine," Mr. Moffett wrote, "But wireline is its anchor." "Wireless subscriber growth and profitability were better than expected, but wireline trends - both access line losses and wireline margins - were the worst ever," he wrote.[14] Company shares were up slightly in afternoon trading. Pretty much all of ATT's profit growth came from its wireless unit, which had operating earnings of $2.9 billion, up 96 percent.[14]

AT&T; reported first-quarter profits rose to $3.46 billion, up nearly 22 percent from $2.85 billion in Q1 2007, a surge led by continued growth in wireless.[8] AT&T; Inc. reported a 21.5 percent increase in first-quarter profits, boosted by revenue growth from wireless services.[24] AT&T; Inc, the largest provider of both local and long distance telephone services, wireless service, and DSL Internet access in the United States, announced on Tuesday it recorded an increase in its quarterly profit and the main factor that contributed to it was the company's strong growth in the wireless business.[3]

NEW YORK - AT&T; Inc. posted a 22 percent rise in first-quarter net income on Tuesday, as strong growth at the companys wireless operations made up for its weakness in its traditional wireline business.[1] NEW YORK (AP) — Showing few signs of being affected by a slowing economy, AT&T; Inc.' s first-quarter earnings rose 22 percent on strong growth in wireless.[17] NEW YORK (AP) — AT&T; says its first-quarter earnings rose 22 percent as its wireless division saw continued strong growth and the enterprise services division reversed a declining trend.[23]

Earnings at AT&T;'s wireless unit nearly doubled to $2.9 billion, as revenue increased 18%. The unit's growth was driven by strong subscriber gains and increased average monthly revenue per subscriber.[29] Earnings at the San Antonio, Texas, telecommunications company's wireless unit nearly doubled to $2.9 billion, as revenue increased 18%. The unit's growth.[34]

Total wireless revenues increased 18.3 percent versus year-ago revenues of $11.8 billion, with wireless service revenues (excluding handset and accessory sales) growing 17.1 percent to $10.6 billion.[8] Wireless service revenues, which exclude handset and accessory sales, grew 17.1 percent to $10.6 billion.[10]

Wireless revenue jumped 18 percent to $2.9 billion with the business adding 1.8 million new customers.[35]

The company said wireless service revenue was up 17.1%, as it added 5 million gross new subscribers, or 1.3 million net new subs. Churn was 1.7%, flat with both Q4 and the year earlier quarter.[36] The company, which is the exclusive carrier for Apple's iPhone, added a net of 1.3 million wireless customers, giving it a total wireless customer base of 71.4 million subscribers. That is an increased pace of growth compared with a year ago.[14] AT&T;, the exclusive U.S. carrier for Apple's (AAPL) iPhone, said it added 1.3 million net wireless subscribers in the quarter, in line with an average estimate of 1.32 million according to seven analysts polled by Reuters.[5] AT&T; also said it added 1.3 million net wireless subscribers during the past quarter up 8.7%, including 705,000 new postpaid subscribers.[3]

AT&T; said net wireless subscribers increased by 1.3 million, and the company ended the quarter with 71.4 million wireless subscribers. Looking ahead, the company said it has "confidence" in its outlook.[37]

Coming off a fresh wireless subscriber infusion of 1.3 million customers, AT&T; has posted a 22% increase in profits from the previous years quarter.[31] AT&T; Inc. said Tuesday that first-quarter profits rose 22 percent, fueled largely by the addition of 1.3 million net wireless subscribers -- a sign that the nation's largest wireless carrier has thus far escape the adverse affects of a slumping U.S. economy.[30]

AT&T;'s iPhone deal with Apple looks better every day for the nation's No. 1 telco, which today announced Q1 profits jumped 22 percent over a year ago, driven by a 1.3 million increase in wireless users and helped by cost savings from its continuing integration of BellSouth.[27] Strong data revenues also boosted AT&T;'s profit marginsthe wireless unit had operating income margin of 25 percent, up from 15.2 percent from a year ago.[12]

Gains in broadband and TV connections over the past year totaled 2.6 million, and consumer IP data revenues, which include revenues from broadband and AT&T; U-verse services, increased 18.5 percent versus results for the year-earlier quarter. -- Stable Wireline Expense Trends.[9] Data now represents 22% of AT&T;'s total wireless service revenues, up from 16 % in the first quarter of 2007 and 11% in the first quarter of 2006.[33] First-Quarter Operational Highlights Wireless AT&T; delivered strong wireless growth in the first quarter, reflecting the company's high-quality network, innovative services, attractive handset selection, extensive sales reach and continued improvements in operations.[9] AT&T; Mobility continued its steady growth during the first quarter of the year, reporting customer additions on par with the previous year and gains in customer revenue that helped push the carrier's revenues up more than 17%.[18] During the first quarter of this year, AT&T;'s wireless division has strong year-over-year gains in nearly every area, from subscribers to revenue.[33]

AT&T;'s broadband revenue grew 13.2% in the first quarter to $1.4 billion.[38] AT&T; reported net income of US$3.5 billion for the first quarter of 2008, up from $2.8 billion in the first quarter of 2007.[19] The San Antonio, Texas-based company's net income for the first quarter increased to $3.46 billion from $2.85 billion in the previous-year quarter.[11] The nation's largest telecommunications company reported net income of $3.46 billion, or 57 cents a share, up from $2.85 billion, or 45 cents a share, a year ago.[29] Net income jumped to $3.46 billion, or 57 cents a share, from $2.85 billion, or 45 cents, a year earlier, the San Antonio- based company said today in a statement.[15]

The nations largest telecommunications company earned $3.5 billion, or 57 cents a share, compared with $2.85 billion, or 45 cents a share, in the same quarter a year earlier.[1]

AT&T; earned $3.46 billion, or 57 cents per share, in the three months ended March 31, compared with $2.85 billion, or 45 cents per share, a year ago.[17]

For the period that ended March 31, the telecommunications giant reported net income of $3.5 billion, or 57 cents per share, on revenue of $30.7 billion.[21] ATT (T) this morning reported Q1 revenue of $30.7 billion, producing adjusted profits of 74 cents a share. Both numbers were right in line with the Street.[36]

The mean estimates of analysts polled by Thomson Reuters were for earnings of 74 cents a share on $30.7 billion in revenue.[29] Wall Street analysts estimate earnings of $0.02 per share on revenues of $9.41 billion for the quarter.[11] On average, twenty five analysts polled by First Call/Thomson Financial expected the company to report earnings of $0.74 per share for the first quarter.[11] Reported earnings per share totaled $0.57, up 26.7% from $0.45 in the first quarter of 2007.[39]

In the first quarter, dividends paid totaled $2.4 billion and shares repurchased totaled 111.6 million for $4.1 billion.[10]

Wireline voice revenue was down 7.3 percent from the first quarter of 2007, from $10.5 billion to $9.7 billion.[19] Continuing recent trends, AT&T; Mobility also reported an increase in average revenue per user, which hopped 2% year-over-year to $50.18 during the first quarter.[18]

AT&T;'s wireless data revenue rose to $2.3 billion, up 57% from the year-earlier quarter and 13% from the previous quarter.[25] AT&T;'s total operating revenues for the quarter climbed 6.1% to $30.74 billion from $28.97 billion in the same quarter last year.[11] Wireless revenue for the quarter was $11.8 billion, with wireless data revenue making up $2.3 billion of that total.[19] Revenue's from the telco's wireless business were up 18.3 percent year-over-year for a total of $11.8 billion.[40] Revenue from wireline voice service went down 7.1 percent to $9.7 billion, while wireless revenue increased 17.1 percent to $10.6 billion.[2]

Wireless data services revenueInternet access, e-mail, messaging and data accesswas up 57.3 percent from a year ago to $2.3 billion.[12] The No. 1 U.S. mobile-phone service provider posted adjusted earnings of $4.5 billion, or 74 cents a share, up 13.8% from the 65-cent pro forma profit a year ago.[26] AT&T; racked up $3.5 billion in profit. That's compared to net income of $2.8 billion a year earlier and $3.14 billion in the fourth quarter of 2007.[16]

The company also plans to boost download speeds on wireless phones beginning in 2011 or 2012, when it will introduce a new generation of mobile technology. AT&T; paid $6.64 billion in a U.S. government auction this year to acquire airwaves for faster Web access.[15] "To that end we are also taking important steps to expand our networks and product sets to drive continued growth in wireless, broadband and IP-based services." Earlier this year, AT&T; paid more than $6.6 billion for C-block spectrum it says will allow it to offer faster download speeds on wireless phones by 2011 or 2012.[27]

Wireless results were sparked by the Apple Inc. (AAPL) iPhone, which continues to show "stable sales," Chief Financial Officer Rick Lindner told analysts on a conference call on Tuesday. He declined to comment on the timing of the release of the next iPhone, despite speculation it would come soon. On the lower end of the market, wireless carriers are dealing with slowing growth of post-paid subscribers, AT&T; has been looking to pre-paid customers - previously shunned because they often pay less per month and are more prone to switch services than contract customers - to expand its subscriber base.[29] We would expect overall churn, and in particular postpaid churn, to continue to decline." Lindner added that the new unlimited service plans for a flat rate of $99.99 a month should not have an impact on ARPU. He also said Apple's iPhone "continues to be popular with customers," and that the device has pushed ARPU across that customer base to the mid-to-high $90 range. When asked about the results of the Federal Communications Commission's auction of the 700-megahertz spectrum, AT&T; said its winning bid for the bulk of the B-block will help the company as it eliminates the need to clear spectrum to roll out its Long Term Evolution, or LTE, network.[26]

4 percent of new customers are now signing up for the $99.99 plan. "Obviously. new customers are choosing to buy up to get the peace of mind of unlimited pricing," he said. The company did not release sales figures for the iPhone, for which AT&T; is the exclusive carrier, but said there was no sign of a slowdown in sales due to the expected arrival of version with cellular broadband capability some time this year.[17] New York - AT&T; Inc, the largest U.S. telephone company, Tuesday reported a first-quarter profit jump of 22 per cent on sales of the iPhone wireless handset and savings from job cuts.[41] April 22 (Bloomberg) -- AT&T; Inc., the biggest U.S. telephone company, said first-quarter profit rose 22 percent on sales of Apple Inc.' s iPhone and savings from a plan to cut 10,000 jobs after its 2006 purchase of BellSouth Corp.[15]

Telecommunications company AT&T; Inc., which reports quarterly results on Tuesday, already said it expects to take a $374 million pretax charge against first-quarter earnings due to planned job cuts representing 1.5 percent of its work force.[42] The results include severance charges related to layoffs in AT&Ts; declining landline business and acquisition-related expenses. Earnings were reduced by $1.2 billion in noncash charges related to its various mergers and $374 million in costs related to its recent layoffs, the company said.[1] Savings from the expense reductions and a surge in wireless sales probably boosted earnings to $4.49 billion last quarter, leaving out acquisition costs and a $374 million pretax charge for the latest job cuts, according to the average estimate in the Bloomberg survey.[32]

Earnings were reduced 13 cents per share by merger-related costs and 4 cents by severance costs. The company said last week that it plans to cut about 4,600 jobs, or 1.5 percent of its work force, to shift resources from the traditional phone operations to growing parts of its business, like wireless. It expects its total head count of 310,070 to keep expanding.[17] Sales climbed 6.1 per cent to 30.7 billion dollars, boosted by wireless business. After the 86-billion-dollar purchase of BellSouth Corp in 2006, the company gained tens of thousands of new customers while cutting 10,000 jobs in overlapping functions such as marketing and technology.[41] Since the beginning of 2007, it has announced deals with General Motors Corp., U.S. Airways Group Inc. and Deutsche Bank AG. Earnings reports have been mixed this month, with General Electric Co. and Alcoa Inc. missing analysts' estimates and Google Inc. and Caterpillar Inc. exceeding them. In the fourth quarter, AT&T;'s sales trailed forecasts after the company disconnected land-line customers who missed payments and more than half of its new wireless users opened less- profitable accounts, paying in advance or signing up through third-party sellers.[32] Wireless once again has proven to be AT&T Inc.’s cash cow and the carrier will rely on its new spectrum holdings to power that trend. AT&T; reported its first quarter earnings, highlighting continued strength in wireless and gains in wireline, even with residential landline losses.[16]

The number of AT&T; wireless subscribers in the first quarter grew 1.3 million. That's 104,000, or about 9%, more than the increase in the Q1 2007. It ended the quarter with 71.4 million subscribers.[33] An interview with Steve Jobs will air tonight as part of a documentary on Pixar; Apple has pushed out a new build of Mac OS X 10.5.3; and AT&T; added another 1.3 million subscribers in the first quarter.[30]

The company added 148,000 Internet-protocol video customers in the first quarter, giving AT&T; U-verse 379,000 subscribers at the end of the quarter.[26]

AT&T; might outperform other sectors in a soft economy, Lindner said. "Our business continues to be more defensive than most in times when the economy is weaker or under stress," he said. AT&T; says it added 148,000 customers for its fledgling U-verse TV service in the quarter, giving it 379,000 overall. Lindner says AT&T; will hit its target of 1 million U-verse customers by year's end.[25] Competition played a bigger part in AT&T;'s home-phone losses than the economy in the fourth quarter, according to the company, as cable rivals bundled television, digital home-phone service and Internet connections. About 656,000 home-phone customers disconnected their primary lines in the fourth quarter. AT&T; attributed about 100,000 shutdowns to customers who didn't pay their bills because of economic conditions. That trend may continue this year, said Stifel Nicolaus & Co.' s Christopher King, a Baltimore-based analyst.[32]

AT&T; lost 1.2 million phone lines in the quarter, to end with 60.4 million. That's a trend that's affecting all phone companies, as customers switch to using wireless or cable services.[17] Management didn't give tangible guidance, but sounded upbeat about potential growth in wireless data services and U-Verse, which it expects to hit 1 million subscribers by year-end. That recession? AT&T; didn't want to talk about it -- perhaps they learned their lesson -- other than to say that "softness" in residential phone lines was offset by growth in broadband and video.[43] AT&T; (T) reported in-line Q1 results but didn't blow anyone away. Wireless subscriber growth was a touch weak, but AT&T; signed up more subscribers to its U-Verse Internet TV service than UBS analyst John Hodulik predicted.[43] AT&T; said the results reflected record wireless gains, a significant increase in recurring enterprise services growth, continued double-digit growth in broadband revenues, and an accelerated expansion of the company's advanced TV service.[11] The company said that results for the latest quarter reflected improvement in enterprise revenue growth, solid double-digit growth in broadband revenues and a continued strong ramp in AT&T; U-verse, a next-generation IP-based video service.[11]

In the most recent quarter, AT&T; was fairly silent on the iPhone's impact, with Lindner only mentioning it once during an analyst conference call, and then just to answer a question. It still remains vital to growth - more than 40% of customers who buy the iPhone are new to AT&T.; It also props up the average monthly revenue per user, with iPhone customers paying in the upper-$90s range.[44] Lindner also pointed out that average revenue per user per month is above $90 for iPhone customers, which is way above the $50.18 for the wireless operations overall. It's a good bet the iPhone helped the 5% year-over-year increase in average revenue for retail customers that ATT reported. Perhaps we won't be getting any discussion of missing iPhones this quarter.[45] The overall average revenue per user in the first quarter ticked up 2% to $50.18. Lindner said there were few developments with the iPhone in the recent quarter, which was why he didn't talk about it much. "The trends continue to be stable," he said.[44]

The company's wireless division posted revenue increases of 18.3 percent from the first quarter of 2007, including a 57.3 percent increase in wireless data revenue.[19] Profit at ATT, the telecommunications company, jumped 22 percent in the first quarter, meeting expectations, as its wireless business continued to grow fast enough to make up for its shrinking traditional service.[14]

NEW YORK (Reuters) - Top U.S. phone company AT&T; (T) reported a rise in quarterly profit on Tuesday, led by strong growth in its wireless business, as traditional phone subscriptions fell.[5] AT&T;, the largest mobile cell phone company in the United States, reported a rise in quarterly profit on Tuesday, led by strong growth in its wireless business, as traditional phone subscriptions fell.[6]

AT&T; Inc. posted a 22% rise in first-quarter profit, as strong wireless and data growth eased concerns about the weak U.S. economy's impact on the company. "Customers may be trying to tighten their belts somewhat, but they all have a need for communication," Chief Financial Officer Rick Lindner said in an interview.[34] NEW YORK -- Showing few signs of being affected by a slowing economy, AT&T; Inc.' s first-quarter earnings rose 22% on strong growth in wireless.[46]

About AT&T; AT&T; Inc. (NYSE:T) is a premier communications holding company. Its subsidiaries and affiliates, AT&T; operating companies, are the providers of AT&T; services in the United States and around the world. Among their offerings are the world's most advanced IP-based business communications services and the nation's leading wireless, high speed Internet access and voice services. In domestic markets, AT&T; is known for the directory publishing and advertising sales leadership of its Yellow Pages and YELLOWPAGES.COM organizations, and the AT&T; brand is licensed to innovators in such fields as communications equipment. As part of its three-screen integration strategy, AT&T; is expanding its TV entertainment offerings.[9] Profit is still expected to grow versus the year earlier. AT&T; Inc. is laying off workers in its local phone business and other areas to shift resources into faster-growing areas such as wireless and its TV divisions, which includes an Internet Protocol-based service.[42]

Franklin added that while AT&T; managed to grow corporate service revenues and that the popularity of wireless and Internet use was sheltering the company from a U.S. economic downturn, it may be growing more vulnerable. "They are more defensive than most industries. Then again, while 10 to 15 years ago you had one relationship with the telephone company and that was sacrosanct even in an economic downturn, today you have more than one relationship and it's easier to reduce your relationship," he said.[4] Data now represent 22% of AT&T;'s total wireless service revenue, up from 16% a year ago.[29] AT&T; said data products - text messaging, music downloads and Internet access - accounted for 21.5% of wireless revenue, vs. 16% a year ago.[25]

In the quarter, AT&T;'''s wireless customers sent more than 620 million multimedia messages and 44 billion text messages, double year ago rates.[12] AT&T; ended the first quarter with 14.6 million high-speed Internet connections, up 13.9% from a year ago.[26]

Double-Digit Growth in Adjusted EPS AT&T;'s adjusted results for the first quarter of 2008 exclude merger-related amortization expenses and costs associated with a workforce reduction.[9] AT&T; Inc. posted double-digit growth in several financial categories as the company concluded a strong first quarter of 2008.[13]

Retail postpaid churn was 1.2 percent, down from 1.3 percent in the year-earlier first quarter and flat with the fourth quarter of 2007. -- Strong Wireless Operating Income Growth.[9] Strength in its wireless operations helped propel ATT to healthy earnings growth for the first quarter.[21]

Yahoo Grows Earnings and Revenue in Q1 Yahoo grew its revenue and net income and exceeded Wall Street's expectations for both categories during its first quarter of.[19] Enterprise service revenues, which exclude effects from acquisitions and CPE sales, grew 2.1 percent, following a 1.5 percent increase in the preceding quarter and a decline of 3.0 percent in the first quarter of 2007.[9] Revenue was up 6.1 percent from the first quarter of 2007, the company reported on Tuesday.[19]

Data revenue increased 5.6 percent. The voice segment, however, was the one segment that saw a decrease in revenue; its revenue was down 7.3 percent for the quarter. The company also continued to grow its AT&T; U-verse TV subscriptions.[13] Data : Data revenues were up 57.3 percent to $2.3 billion from the year-earlier quarter.[40] AT&T;'s wireline revenues for the quarter declined 2.0% to $17.62 billion from $17.99 billion in the prior-year quarter.[11] AT&T;'s revenue from wireline voice service fell 7.1% to $9.7 billion, as home phone customers switched to cable plans or wireless-only service.[25]

Chief Executive Officer Randall Stephenson said, '''Revenue growth continues to ramp, we have good momentum across key growth areas, major cost initiatives are on track, and our operational results reinforce the confidence we have in our outlook.''' The company, in an online forecast reiterated its January forecast for full-year revenue growth in the '''mid-single digits''' over 2007's $118.9 billion.[2] "Revenue growth continues to ramp, we have good momentum across key growth areas, major cost initiatives are on track, and our operational results reinforce the confidence we have in our outlook." AT&T; announced April 18 that it plans to eliminate about 4,600 jobs, almost 2 percent of its work force.[24] Randall Stephenson, AT&T; chairman and chief executive officer, said in a statement, "Revenue growth continues to ramp, we have good momentum across key growth areas, major cost initiatives are on track, and our operational results reinforce the confidence we have in our outlook."[39]

In accordance with purchase accounting rules, deferred revenues and expenses for all BellSouth directories delivered prior to the close of the merger were eliminated from 2007 consolidated results. This elimination of amortizations reduced first-quarter 2007 consolidated revenues by $409 million and consolidated operating expenses by $108 million. AT&T; manages its print directory business using amortized results. [9] Financial Data AT&T; Inc. Non-GAAP Consolidated Reconciliations Adjusted and Reported Wireline Operating Expenses Dollars in Millions Unaudited Three Months Ended 3/31/08 3/31/07 YoY % Change Reported Wireline Operating Expenses $14,791 $15,091 -2.0% Operating Adjustments Cash Integration Costs - 86 -100.0% Intangible Amortization 421 630 -33.2% Total Adjusting Items 421 716 -41.2% Adjusted Wireline Operating Expenses $14,370 $14,375 0.0% Adjusted Wireline operating expenses differs from reported operating expenses in that it excludes the merger-related expenses shown above and provides additional comparability to prior periods.[9] Financial Data AT&T; Inc. Non-GAAP Consolidated Reconciliations Reconciliation of Free Cash Flow and Free Cash Flow Yield Dollars in Millions, Except for Share Price Unaudited March 31, 2008 Trailing Twelve Months Net cash provided by operating activities $34,416 Less: Construction and capital expenditures 18,626 Free Cash Flow $15,790 End of Period Share Price $38.30 End of Period Shares Outstanding (Ms) 5,939 Market Capitalization $227,464 Free Cash Flow Yield 6.9% Free cash flow yield is based upon cash from continuing operations less capital expenditures as a percentage of market capitalization computed on 03/31/08.[9]

Sprint added 35 cents to $7.05. Stifel Nicolaus analyst Christopher King said total switched access lines fell 7.7% from the year-ago period, a result that was worse than expected, while net wireless additions of 1.3 million fell shy of his estimate. These notable operational soft spots have King concerned going forward, even though the company met Wall Street's estimates. [26] AT&T; said it added 1.3 million wireless net subscribers in line with an average estimate of 1.32 million according to seven analysts.[6]

AT&T; rose in New York trading after reporting 1.3 million new wireless customers, in line with the 1.35 million estimate of UBS AG analyst John Hodulik.[15]

AT&T; added 1.3 million wireless customers in the quarter, up 9% from first-quarter 2007.[25] "At&t; added 5 million customers (Leaving aside churn)" Are you kidding me, you must have a position either in at&t; or apple. At&t; had 1.3 million net adds this quarter which meand their churn must have been 3.7 million, if I understand these number 3 times as many people left as they added, and this is a good thing.[45]

For the quarter, the industry's No. 1 carrier said it added 1.295 million net wireless customers, which was an 8.7% increase compared with the 1.191 million it added during the first quarter of 2007.[18] The company ended the first quarter with 71.4 million wireless customers, ahead of No. 2 Verizon Wireless, which has 65.7 million.[25]

The company announced 4,650 additional firings April 18 to thin the ranks of managers in the home-phone business, incurring a $374 million pretax charge in the first quarter.[15]

On a reported basis, wireline operating expenses totaled $14.8 billion in the first quarter of 2008, versus $15.1 billion for the year-earlier first quarter.[9] In the first quarter, cash flow from operations was $5 billion, up 7 percent. It invested $4.3 billion in facilities and equipment, up 27 percent.[14]

During the quarter, AT&T; spent $6.64 billion for spectrum licenses it will use to expand its broadband services.[17] AT&T;'s 2006 buy of BellSouth for $86 billion gave it residential business in 22 states and full ownership of the wireless business it shared with BellSouth. It planned to cut 10,000 jobs after the purchase to streamline operations and reduce redundancy. Last week, it announced 4,650 job cuts, mostly among managers, as it reconfigured its workforce away from landline business toward wireless and Internet.[27] The stock has slipped nearly 10% in 2008 after posting a 19% gain last year. AT&T; is spending heavily to keep its wireless engine humming. It has committed $9.1 billion in 2008 to buying airwaves, including the $6.6 billion it spent in the recent government auction of radio spectrum.[25] Total wireless revenues increased 18.3% versus last year, rising to $11.8 billion.[39] The San Antonio telecommunications giant said operating revenue increased 6.1% to $30.74 billion from $28.97 billion, a year ago.[37] The segment reported a 1.8% decline in operating revenues to $1.42 billion from $1.44 billion a year ago.[11]

Reported operating income for the quarter was $5.98 billion, up from $4.66 billion in the same period last year.[11] On an adjusted basis, operating income climbed to $7.6 billion from $7.0 billion in the year-earlier quarter.[11] Segment operating income rose 94.1% to $2.96 billion from $1.52 billion in the prior-year quarter.[11]

Total revenue reached $30.7 billion for the quarter, which ended March 31.[19] Revenues touched $30.7 billion thereby registering a growth of 6.1 per cent.[22] Revenue grew 6 percent to $30.7 billion from $29 billion last year.[24]

The San Antonio, Texas-based company skimmed above analysts' expected $30.7 billion in sales posting a 6.1% rise in quarterly sales to reach $30.7 billion from last year's $30.0 billion.[20] Sales climbed 6.1 percent to $30.7 billion, meeting the average estimate in a Bloomberg survey of analysts.[15]

Total sales rose 6.1% to $30.7 billion, including $10.6 billion in wireless sales.[25] Sales also hit Wall Street's targets, coming in at $30.7 billion, up 6.1% from the year-ago quarter.[26]

Bloggers, analysts and industry observers alike have expressed the belief - or perhaps just hope - that one is forthcoming. AT&T;, for its part, declined to comment. "I don't think it's the right thing for me to comment on," Chief Financial Officer Rick Lindner said in an interview with Dow Jones Newswires. Sales of iPhones have been stable in the first quarter, he said. While some AT&T; stores have had temporary shortages, there remains plenty in its inventory. He declined to comment on the inventory level at Apple. [44] ATT ( T ) on its conference call with analysts today skirted giving numbers about how many of Apple's ( AAPL ) iPhones it activated in the quarter ended March 31, which it reported earlier today. Rick Lindner, ATT'S CFO, said simply that "The iPhone again continues to be very popular with customers, and customer feedback on the device is very good," and, when asked if customers withheld purchases pending a new version of the phone, he responded, "Through the first quarter, it was pretty stable."[45] "The iPhone continues to be popular. We continue to see customers adopt the iPhone and over 40 percent of those customers are new to us," said Lindner, adding that trends haven't changed much in the first quarter. He also noted that iPhone demand was stable despite anticipation of a 3G version of the device.[12]

More than 40 percent of the customers that purchase an iPhone are new to AT&T.; Unlimited plans: Prior to debuting its $99/mo. unlimited rate plan about 1.5 percent of new customers would sign up for rate plans at $99/mo. or above.[40] IPhone users spend an average of $95 a month, AT&T; says. Much of AT&T;'s subscriber growth is coming from lower-spending, prepaid customers who buy airtime as they need it.[25]

The company has benefited from the decline of No. 3 wireless shop, Sprint S, which has seen high customer attrition, and the introduction last year of Apple's AAPL iPhone, a product for which it is the exclusive authorized U.S. service provider. Previously one of the company's weak spots, AT&T;'s fiber and DSL-based expansion, as a part of its so-called triple play service package, has started to gain some traction.[26] AT&T; is the exclusive U.S. provider of iPhone service. For AT&T;, a key question is whether wireless growth can offset its shrinking residential business.[25] "AT&T; is moving quickly to create the next generation of wireless," said Randall Stephenson, AT&T; chairman and CEO. "The future of wireless has never been more promising, and I am very pleased that through our transaction with Aloha Partners and our successful bids in the recently completed auction, we have assembled the industry's premier, high-quality wireless spectrum position. This spectrum will provide a terrific foundation for new wireless and integrated services, and it significantly advances AT&T;'s long-term growth potential."[33]

Some 22% of AT&T;'s 71.4 million wireless customers buy prepaid services, including 9.5 million subscribers of Tracfone. Tracfone is owned by America Movil, ( AMX ) which reports its first-quarter results Wednesday.[25] AT&T; recorded 5.0 million gross wireless subscriber additions in the quarter, up from 4.3 million in the year-ago period.[11] AT&T; reported a net gain of 104,000 wireless subscribers during the quarter.[19]

Total net adds in the first quarter were reduced by about 330,000 because of the shutdown of AT&T;'s TDMA wireless network in late February.[11] The company said it lost 1.2 million net wireline subscribers during the first quarter.[35] The company's net gain in wireless subscribers totaled 1.30 million, up 8.7% from 1.19 million net adds in the previous-year quarter.[11] Net gain in wireless subscribers totaled 1.30 million in the quarter, up 8.7% from a year ago.[11]

The company ended the quarter with 71.37 million subscribers in service, compared to 62.22 million subscribers a year ago.[11]

Primary retail consumer access lines fell 6.2% year-on-year. It is also selling high-speed Internet and video services to retain customers and compete with cable service providers. The company said high-speed Internet connections among its consumer and business customers rose 13.9% from a year earlier to 14.6 million.[6] ATT said it added 148,000 U-verse television customers in the quarter, increasing the total to 379,000. The company said it is on track for its goal of more than 1 million television customers by the end of the year.[36] Total high-speed Internet connections increased by 491,000 during the quarter, with 14.6 million consumer and business high-speed connections, the company said.[19] The company ended the quarter with 14.6 million consumer and business high speed Internet connections, up 13.9% over the past year.[11]

AT&T;'s Internet business slowed but was in line with expectations. It added 491,000 consumer broadband subscribers last quarter, down 29% from a year earlier.[25]

Income from AT&T;'s wireline business fell 2.1 percent to $2.83 billion.[35] Income for ATT's wireless segment nearly doubled, leaping 95 percent from a year earlier to $2.9 billion.[21]

The company's wireless data revenues grew 57% year-over-year to $2.3 billion.[33] Wireless data revenues grew 57.3% to $2.3 billion, reflecting surging demand for Internet access, e-mail, messaging, data access and media bundles.[38]

The world's biggest banks and brokerages have recorded $260 billion in asset writedowns and credit losses since the start of 2007. The company said in January that it still expects a percentage increase in revenue this year in the "mid-single digits'' over 2007's $118.9 billion.[32] A week after announcing it would cut 4,600 jobs, the company said it earned $3.46 billion during the quarter, up from $2.85 billion for the same period in 2007.[35] Net income rose to $3.46 billion, or 57 cents a share, from $2.85 billion, or 45 cents.[38] Net income was 3.46 billion dollars, or 57 cents a share, from 2.85 billion dollars, or 45 cents, a year earlier, the San Antonio- based company said in a statement.[41]

Net income hit $3.46 billion, an increase from $2.85 billion, and revenue saw a 6% increase from $28.97 billion to $30.74 billion.[31] The company reported first-quarter net income of $3.5 billion, up 21.5% from $2.8 billion in the year-earlier period.[39]

Adjusted earnings for the latest quarter, which exclude merger-related amortization expenses and costs associated with a workforce reduction, increased 10.3% to $4.5 billion from $4.1 billion in the year-ago quarter. [11] On a per share basis, adjusted earnings climbed 13.8% to $0.74 from $0.65 in the prior-year quarter.[11] Adjusted earnings per share reached $0.74, up 13.8% from last year's mark of $0.65.[39] Adjusted earnings per share were $0.74, meeting expectations of analysts polled by Thomson Financial.[19] On average, 24 analysts polled by First Call/Thomson Financial expected earnings of $0.74 per share.[39]

The earnings per share and revenue matched the average expectation of analysts polled by Thomson Financial.[17]

AT&T; Mobility accounted for the largest share and more than one-third of parent company AT&T; Inc.' s revenues for the quarter.[18] "You've had rapid deterioration in the fortunes of some significant enterprise customers.'' AT&T;, the biggest U.S. phone company, sells services such as long-distance calling, Internet connections and data storage to the 1,000 biggest U.S. companies ranked by revenue, spokesman Fletcher Cook said.[32] Regional business data revenues, which make up 30.5 percent of the category, grew 6.3 percent, led by strong growth in Ethernet services and 15.2 percent growth in IP data services, including gains in broadband, managed Internet and VPN services.[9] Substantial growth in wireless data, which is 21.5% of total service revenues.[43] As 3G devices roll out, AT&T; will have an opportunity to boost data services revenue growth.[12]

First-quarter regional consumer results continued trends of recent quarters, with improved growth in broadband and Advanced TV services offsetting traditional voice access line pressures, resulting in stable revenues.[9] Wireline AT&T;'s first-quarter wireline results were highlighted by further improvement in enterprise revenue growth, a solid double-digit increase in broadband revenues and a continued strong ramp in AT&T; U-verse TV subscribers.[9]

In a conference call with analysts, Lindner reiterated a January forecast for full-year revenue growth in the "mid-single digits'' over 2007's $118.9 billion.[15] The wireline business posted a 2.1% drop in earnings to $2.83 billion, as revenue fell 2%.[29] Revenue increased 6.1 percent to $30.74 billion from $28.97 billion.[30] ARPU: Average revenue per user was $50.18 up 2 percent from the year-ago quarter.[40] Operating revenues for the segment remained unchanged with the prior-year quarter at $544 million.[11] King had forecast 1.4 million new subscribers. He also pointed out that net additions of postpaid users, or those who pay monthly subscriptions instead of prepaid fees, rose by 705,000 subscribers, just 3.7% higher than in the year-ago quarter. Postpaid subscribers are considered more valuable as they tend to bring in more revenue per user.[5] Regional consumer revenue connections (retail voice, high speed Internet and video) totaled 49.3 million at the end of the quarter. This compares with 49.3 million at the end of the first quarter of 2007 and 49.4 million at the end of the fourth quarter of 2007.[9] During first quarter customers sent 620 million MMS messages and 44 billion SMS messages.[40] AT&T;'s home-phone customers disconnected 689,000 primary lines in the first quarter, up from 283,000 in the year-earlier period.[25] "We delivered an excellent first quarter and a solid start to the year," AT&T; chairman and CEO Randall Stephenson said in a statement.[24]

NEW YORK - AT&T; Inc. will donate $100 million over four years to programs aimed at boosting high-school graduation rates, Chief Executive Randall Stephenson is to announce Thursday. "Far too many students are dropping out of high school in this country - one every 26 seconds - creating a serious threat to our nation's global economic leadership," Stephenson said in a statement ahead of a speech at the Economic Club of Chicago on Thursday.[47] For the full year 2007, operating expense savings from BellSouth and AT&T; Corp. merger integration efforts and previously outlined operational initiatives totaled approximately $3.9 billion. AT&T; expects these expense savings to grow in 2008 by more than $2 billion dollars.[10] AT&T; expects savings from merger integration and cost cutting of more than $2 billion in 2008.[37]

AT&T; shares gained 22 cents, or 0.6 percent, to close at $37.81 in Tuesday trading.[17] The company's shares added 1.0%, or 36 cents, to $37.90, in morning trading in New York.[20] "Wireless continues to be a strength for the company,'' said Todd Rosenbluth, an analyst at Standard & Poor's in New York. He recommends buying the shares.[15]

Netflix's first-quarter profit jumped 36% compared to the same period last year, meeting analysts' expectations, according to an Associated Press report picked up by the New York Times. This news did not prevent Netflix's stock price from declining 14% on concerns over the company's "shift to high-definition DVDs and increased digital downloading of movies and TV shows."[7]

The devices, which each cost $7,500, are not full-blown polygraphs - or lie detectors, said Donald Krapohl, special assistant to the director at the Defense Academy for Credibility Assessment, the Fort Jackson-based agency that helped design the devices. NEW YORK - The fight against child pornography is getting an assist from technology designed by Google Inc. to help identify copyright-protected clips on its YouTube video-sharing site. Four Google employees used their "20 percent time" - during which the company encourages them to pursue unofficial, out-of-the-box projects - to customize the copyright software for the National Center for Missing and Exploited Children's program for identifying children in sexually explicit photos and video.[47] NEW YORK - AT&T; Inc. on Friday said it plans to cut about 4,600 jobs, or 1.5 percent of its work force, to shift resources to growing parts of its business.[48] The prospect of belt-tightening by business customers may take some of the luster off AT&T;'s earnings report tomorrow, said Craig Moffett, a Sanford C. Bernstein & Co. analyst in New York.[32]

Sales to corporate customers, excluding revenue from an equipment business, expanded in the second half of 2007 for the first time since the 2005 merger that created the current AT&T.; The turnaround was "a pleasant surprise,'' Stephenson told investors in January.[15]

Cowen and Co. analyst Tom Watts noted continued strong sales of Apple Inc.' s iPhone as well as continued weakness at Sprint Nextel Corp. helped boost AT&T; Mobility's growth during the quarter.[18] The company also reported gains in broadband and Internet Protocol-based services. In its statement Tuesday morning, ATT did not offer any updates on its sales of Apple's iPhone, for which it is the exclusive carrier in the U.S. The company also declined to give hard data in its conference call with analysts.[21]

Good day. Sales of mobile handsets, including Apple's iPhone, and savings from layoffs associated with the BellSouth purchase drove first-quarter profits for AT&T;, the telco said in its earnings report this morning, Bloomberg reports.[7] AT&Ts; earning report did not reference Apple or iPhone sales specifically, and that's simply a typical practice because AT&T; sells mobile phones from many different manufacturers.[49]

Wireless sales and layoffs help AT&T;'s bottom line, rumors about the 3G iPhone and more news.[7] Lindner didn't comment on a timetable for a new iPhone. Overall, Lindner said he expects turnover to continue to fall in the wireless side. Looking ahead, AT&T; plans to upgrade its network to fourth-generation, or 4G, technology, around 2010.[28]

AT&T; has been the exclusive provider of wireless service for Apple's iPhone in the U.S. since the handset shipped in June 2007.[19] Wait, arent we supposed to be in a recession? In what could be seen as proof that wireless service and mobile phones are now considered an essential part of daily life, AT&T;, the largest telecom in the U.S., has posted impressive gains in its 1Q 2008 financial statement.[31]

AT&T;, along with wireless provider Verizon Communications (VZ), has been fending off strong challenges from cable companies while suffering ongoing losses in traditional phone lines. It lost 1.2 million net access lines in the period.[29] AT&T;, like most telcos, has been losing residential landlines to cable and wireless companies as consumers increasingly turn to VoIP and wireless options. It dropped 1.6 million residential lines in 2007. AT&T; has-with the help of its exclusive partnership with Apple-been able to replace the lost business with an even more profitable one.[27]

San Antonio, Texas (AHN) - Telecom giant AT&T; pointed to its wireless business as the reason behind a 22 percent jump in first-quarter income.[35] AT&T; won 227 spectrum licenses in the recently completed 700MHz auction by the U.S. Federal Communications Commission. Earlier this year, the company completed its purchase of 12MHz of wireless spectrum in the 700MHz band that covers 60 percent of the U.S. from Aloha Spectrum Holdings.[19]

Retail postpaid subscriber ARPU growth was even stronger, up approximately 5 percent. -- Robust Growth in Wireless Data Services.[9] I think we're comfortable with saying we expect wireline EBITDA margins to be relatively flat and in mid-30% EBITDA range. In wireless, continue to see very strong growth in revenue, ARPU, data revenue growth, increases in both postpaid and overall net adds.[43] We've got two things going on in wireless base: Growth in 3G devices but also growth in smartphones. Both of those are positive to us from standpoint of ARPU and of data revenues.[43]

Revenue for wireless data services - including mobile access to Internet and email - surged 57%.[29]

Enterprise service revenues, which exclude effects from acquisitions and CPE sales, grew 2.1% in the quarter, compared to a decline of 3.0% in the same period last year.[11] Regional business service revenues, which exclude CPE sales, grew 3.4 percent.[9] Corporate sales represented about 16 percent of overall revenue in the fourth quarter.[32]

Net income was up 22 percent from the year-ago quarter, while revenue rose 6 percent.[21]

Wireless revenue for the quarter increased 18.3% from the same period last year.[11]

Total operating expenses for the quarter increased 1.9% to $24.76 billion from $24.31 billion in the prior-year period.[11] Total video connections, which include AT&T; U-verse service and bundled satellite television service, increased by 264,000 in the quarter to reach 2.6 million.[11] Total high speed Internet connections, which include DSL, U-verse enabled AT&T; High Speed Internet and satellite broadband services, increased by 491,000 in the quarter.[11]

Total high-speed Internet connections, which include DSL, U-verse enabled AT&T; Internet and satellite-broadband services, jumped by 491,000 subscribers.[26]

AT&T; U-verse TV service achieved a net subscriber gain of 148,000 in the quarter to reach 379,000 in service.[11] The numbers pushed the carrier's customer base to more than 71.3 million subscribers. AT&T; Mobility did note however that it lost around 330,000 customers during the quarter as it shut down its TDMA network in late February.[18] Desmonds if AT&T; added 5 million customers and the churn was 3.7 million then they added 5 million and lost 3.7 million customers so it doesn't mean they lost 3 times what they have added.Can you imagine if all 5 million added were wireless cutomers and at least half of those were purchasing iphones.Just a possibility.[45]

AT&T; introduced an unlimited-talk plan for $99.99 per month on Feb. 19, just hours after Verizon Wireless.[17] Excluding items, AT&T; earned 74 cents per share, up from 65 cents per share a year ago.[17] AT&T; ended the quarter with 5.9 billion shares outstanding, and its stock current yields 4.2%.[20]

Apple fell $7.96, or 4.7 percent, to $160.20 on the Nasdaq Stock Market after American Technology Research downgraded the shares, saying investors' expectations for earnings tomorrow may be too high.[15] It will take a $374 million pretax charge. Quarterly earnings are fine, but shares of the phone maker drop as its discussion about the industry rattles investors.[26]

The San Antonio-based company said in a regulatory filing that it plans to take a $374 million first-quarter pretax charge against earnings due to the job cuts.[48]

AT&T;`s adjusted quarterly earnings totaled $4.5 billion, up 10.3% from $4.1 billion last year.[39] Adjusted operating income surged 38.5% to $3.5 billion from $2.5 billion in the year-ago period.[11]

Revenue: $30.7 billion, up 6.1% year-over-year and in line with $30.7 billion consensus.[43] Quarterly revenue rose 6.1% to $30.7 billion, compared with the Reuters estimate of $30.6 billion.[5]

Twenty Wall Street analysts' consensus revenue estimate came in at $30.71 billion.[39]

The average monthly revenue a subscriber, a closely watched measure, increased 2 percent, to $50.18.[14] Average monthly revenue per subscriber rose 2% to $50.18, thanks to data products.[25] The average revenue per user, a very important measure in the telecom industry, climbed 2% to $50.18, the company said.[3] Average revenue per user, a closely watched measure in the telecom industry, edged up 2% to $50.18.[29]

On the enterprise side, revenues rose 1.2 percent from a year ago. It was the first year-over-year increase in more than a year. Large contract wins from IBM Corp. and Royal Dutch Shell PLC should be starting to boost results this year, Lindner said. [17] Adjusted results for the first quarter of 2007 excluded merger-related costs and accounting effects as well as gains from wireless transactions.[10] If you look at adjusted numbers, still see a decline in D expense in first quarter. In wireline business: When did ATT and BLS deals, certain assets both in network and in IT and in support systems that we knew we would use for an interim period of time but as integrated, would come out of service. We accelerated dep. of those assets, did over short lives.[43]

Total average monthly subscriber churn, which includes postpaid, prepaid and reseller subscribers, was 1.7 percent, flat with the year-earlier first quarter and with the fourth quarter of 2007.[10] Retail postpaid net adds totaled 705,000 in the first quarter, up 3.7 percent versus net adds in the year-earlier first quarter.[10] Retail postpaid churn was 1.2 percent, down from 1.3 percent in the year-earlier first quarter and flat with the fourth quarter of 2007.[10]

"We delivered an excellent first quarter and a solid start to the year," said CEO Randall Stephenson said in a release.[26] Sales of the device were stable in the first quarter, with little slowdown in anticipation of the launch of a third-generation, or 3G, version coming soon.[28]

Customers dropped about 693,000 primary home-phone lines to switch to wireless handsets or cable providers' voice plans, a trend that has forced Chief Executive Officer Randall Stephenson to look to mobile sales for growth.[15] Updated from 8:46 a.m. EDT AT&T; T posted first-quarter numbers that were in line with estimates, buoyed by strong growth in its wireless, broadband and enterprise divisions.[26] "In wireless, we continue to see very strong growth. and we feel good about the enterprise (corporate and government) business," Richard Lindner, AT&T;'s chief financial officer, said Tuesday on a conference call with analysts.[25] Some analysts have fretted about AT&T;'s outlook, given the slowing economy. AT&T; said it's sticking with full-year guidance of "mid-single-digit" revenue growth.[25]

Regional business revenues from small and midsize firms increased approximately 5 percent. -- Double-Digit Broadband Growth.[9] "Revenue growth continues to ramp, we have good momentum across key growth areas, major cost initiatives are on track, and our operational results reinforce the confidence we have in our outlook."[49] 'Revenue growth continues to ramp, we have good momentum across key growth areas, major cost initiatives are on track, and our operational results reinforce the confidence we have in our outlook,' the company's chief executive, Randall Stephenson, said.[3]

Most of the reductions are being made at the management level, and the company said overall employment will remain steady in 2008 as it adds workers in "growth areas." AT&T; said the job reductions are the next step in streamlining the company's operations, particularly in non-customer-service positions such as telecom and corporate staff groups. [24] Adding to the growth were savings from job cuts after the $86 billion purchase of BellSouth Corp.[2]

Analysts say price cuts for Apple's ( AAPL ) iPhone and a new $99 unlimited calling rate plan boosted subscriber gains.[25] From the recent news it seems like we will get decent numbers on Macs and iPhones. It also sounds like that even though iPod numbers will be down the revenue may not due to the fabulous iTouch, a great way to get an iPhone look without the phone and ATT. I think another reason for optimism is that the news seems to be leaning towards the iPhone being on track for 10 million this year, even though the 3G is not out yet.[45] ATT added 5 million new subscribers (leaving aside "churn," or the number of people who dropped service), the highest in the company's history.[45] On a conference call, AT&T; CFO Rick Lindner said that the company only has 11 million 3G devices in service.[12] During the quarterly conference call for investors, CFO Rick Lindner said that AT&T; wants to get wireless churn, or the rate at which subscribers cancelled the service, down to an industry leading level by continuing to build network coverage and performance.[26] AT&T; markets IP-based business communications services, wireless, high-speed Internet and voice services.[13] In a statement, ATT's chief executive, Randall L. Stephenson, expressed optimism about efforts to cut costs and shift business further to wireless and data service.[14] Mr. Moffett calculated that the rate of lines being disconnected is at a record high. The economic slowdown, he wrote, is encouraging people to cancel their landline service and only use cellphones. He said those customers will not get their traditional phone service reconnected when the economy improves. "Wireless substitution appears to have accelerated, likely due in part to a weakening economy," he wrote. "But to call even this trend 'cyclical' would be a misnomer, in our view; it seems improbable, at best, to assume that consumer who cut the cord now might return when the economy strengthens."[14]

AT&T; had a first-quarter net gain of 148,000 customers for a total of 379,000 subscriptions in service.[24] Total video connections, which include AT&T; U-verse service and bundled satellite television service, increased by 264,000 to 2.6 million.[38]

The wireless unit added a net 1.3 million subscribers for a total of 71.4 million, even though it lost 330,000 subscribers because of the shutdown of a network.[46] The wireless division added a net 1.3 million subscribers, for a total of 71.4 million, even though it lost 330,000 subscribers due to the shutdown of an older network.[17]

Wireless net subscriber additions: 1.3 million, slightly below avg. estimate of 1.32 million according to seven analysts polled by Reuters, and below 1.35 million UBS estimate.[43]

The unit added 1.3 million net new subscribers, up 8.7%, including 705,000 new post-paid subscribers.[29]

The $3.4 million permanent display - similar to a traveling exhibition that's been on the road since 1996 - will emphasize three aspects of artificial robotic behavior: sensing, thinking and acting. NEW YORK - With little fanfare, AOL began occupying new headquarters in New York this week to bring itself closer to the heart of the media and advertising industry as it transforms itself into an ad-supported business.[47] Segment income declined 10.5% to $418 million from $467 million in the previous-year quarter.[11] Segment income slid 94% to $15 million from $252 million a year ago.[11] Total broadband connections was 14.6 million, up 13.9 percent from a year ago.[12] Enterprise IP data revenueservices such as Internet services, hosting and virtual private networkswas up 22.9 percent from a year ago.[12]

As of late last year, cable companies offered phone service in practically all of AT&T;'s 22-state local phone service territory.[46] AT&T; picked up 705,000 retail postpaid customers in the fourth quarter, a 3.7% improvement over last year's levels.[26] Customer churn remained at 1.7% per month during the quarter, which along with customer growth was inline with analyst forecasts.[18] Profit grew 9.4 percent last quarter, excluding costs from 4,650 firings announced three days ago and acquisitions, according to the average estimate in a Bloomberg survey of 10 analysts.[32] Before the $99.99 plan, only 1.5 percent of customers signed up for plans that cost more than that, the CFO said.[17]

After the declaration of results, shares rose by 1.3 percent to $37.59 before-market trading.[2] Apple will report fiscal second-quarter results after the closing bell late Wednesday. Its shares were recently trading down $8.80, or 5.2%, to $159.36.[44]

At midday Tuesday, ATT's shares were up less than 1 percent to $37.91.[21]

A Thomson Reuters survey of analysts, on average, predicted earnings of 74 cents a share for the quarter.[37] Excluding that, merger costs and a prior-year divestiture gain, earning rose to 74 cents a share from 65 cents a share.[29]

Net income rose to 57 cents a share from 45 cents. The nation's largest telecom provider continues to see its old landline business decline.[25]

On April 4, AT&T;, along with Verizon, said it planned next-generation applications via a technology called Long Term Evolution. This technolgoy promises data connections 15 times faster than current U.S. mobile data networks. The company reiterated its commitment to "return substantial value to shareowners through dividends and share repurchases."[20] One disappointment: AT&T; didn't share how many iPhones it activated during Q1, so that early Apple (AAPL) indicator we were looking for isn't happening.[43] And, since cutting iPhone prices in September, just three months after the icon's June launch, AT&T; has slowly begun to take market share from Verizon.[27]

The wireless business was making the transition to the more traditional AT&T; name from Cingular Wireless, which many still considered hipper than the stodgy AT&T; name. The carrier was able to shed those old perceptions by linking itself to the ultra-trendy iPhone.[44] Apple Inc.' s (AAPL) iPhone has also been spearheading the continued growth in the wireless business.[29] The wireless division at country's largest telecommunications company continued to drive growth, even as the local-phone business is stuck with declining numbers.[17]

"To that end, as we deliver strong earnings and return substantial value to shareowners, we are also taking important steps to expand our networks and product sets to drive continued growth in wireless, broadband and IP-based services.[10]

AT&T;, which provides local telephone service in 22 states and nationwide wireless service, was formed through a series of mergers including SBC Corp and BellSouth.[2] If theres a recession going on, it definitely hasnt hit vital wireless service or mobile phone sales.[31] ATT, which merged with BellSouth in 2006 provides local telephone service in 22 states and nationwide wireless service.[14]

On one end, the wireless business continues to perform well, shrugging off economic worries and concern that the base of potential new customers is shrinking. [29] David Pugliese was upped to SVP of Product Marketing for Cox. He will continue to oversee Cox's initiatives in product marketing for video, Internet, telephone and wireless products, bundling, competitive strategy and customer retention strategy.[7]

"Wireless net additions may have met expectations but were nothing to write home about, though the iPhone continues to do fairly well," said Christopher King, an analyst at Stifel Nicolaus. "Consumer line-loss trends were its worst ever."[25] "Overall, I think it was largely in line, but not a great quarter. Wireless net adds were less than expected," he said.[5]

Like in the fourth quarter, AT&T; is beginning to rely more on pre-paid business, either directly or through resellers. [29] Margins for the business was particularly weak, which led many to doubt AT&T;'s ability to maintain flat wireline margins through the year.[29] AT&T; has a goal of connecting more than 1 million subscribers by year's end.[24] U-Verse gained 148,000 subscribers and AT&T; reiterated that it expects to have 1 million subscribers by the end of the year.[12]

The faster model may debut in June, analysts at Sanford C. Bernstein & Co. and Piper Jaffray & Co. have said. Apple plans to sell 10 million iPhones this year. [15] AT&T;'s exclusive deal with the iPhone gives it an edge in signing up heavy users of music and other data, analysts say.[25] Martin, the quote from Lindner was, "ARPUs are in the mid- to upper 90s on the iPhone across the base." He also said, however, "The ARPUs for customers with integrated devices are nearly double the Company average." One can ask whether the iPhone ARPU is any higher than all other smartphones at AT&T;, or whether it's simply tracking to the average. I don't know the answer to that, it's not clear from the call.[45] The company's UMTS/HSDPA network is available in 272 metro areas. Executives said during this morning's call with investors that the average iPhone ARPUs are in the mid to upper $90 range.[40]

Q2 guidance: $31.25 billion revenue/78 cents adjusted EPS Street consensus. [43] On an adjusted basis, profit was 74 cents. The results matched the estimates of analysts surveyed by Thomson Financial, which in this market is good news.[38] The profits before items like merger-related costs and severance charges for recently-announced job cuts rose to 74 cents from 65 cents previous year.[22]

AT&T;'s merger integration and operational cost initiatives continue on schedule.[10] "Investors had concerns about the impact from the economy and the impact from competition, and we think the results AT&T; has put up show business continues to be strong.''[15] On the economy, Lindner chose to let the current quarterly results do the talking and noted that AT&T;'s business "is more defensive than most."[12]

A discussion of factors that may affect future results is contained in AT&T;'s filings with the Securities and Exchange Commission. AT&T; disclaims any obligation to update or revise statements contained in this news release based on new information or otherwise. This news release may contain certain non-GAAP financial measures.[9] 2007 amortized results are shown in the Advertising & Publishing segment on AT&T;'s Statement of Segment Income. In 2008, both consolidated and segment results reflect amortization accounting.[9] AT&T;'s adjusted operating income margin was 24.6%, up from 23.7% in the year-ago period.[11]

"More than ever, wireless is AT&T;'s engine," said Craig Moffett, an analyst at Bernstein Research. "But (consumer) wireline is its anchor.[25] AT&T; also has operations in directory publishing and advertising sales and digital television entertainment. The company's San Ramon office serves as its California and Nevada headquarters.[13] The company was able to pull off a good quarter despite a 7.3% decline in voice sales. Thomson Financial contributed to this article.[20]

Enterprise revenues increased 1.2% from the previous-year quarter, led by a 22.9% increase in enterprise IP data revenue. [11] Growth was driven by strong subscriber gains and continued improvement in ARPU (average monthly revenues per subscriber).[38] The average monthly revenue per subscriber, or ARPU, was up 5% among retail postpaid subscribers.[26]

The turnover rate for customers who sign long-term contracts dipped to 1.2% from 1.3%. The total turnover rate, which also includes customers who pay in advance for their wireless minutes and subscribers who use the network via a reseller, was flat at 1.7%. [29] Wireless subscriber growth and profitability were better than expected, but wireline trends were the worst ever."[25] Retail postpaid subscriber ARPU growth was even stronger, up approximately 5 percent.[10]

AT&T; has been banking on mobile cell phones for growth as traditional home phone users decline.[6] April 21 (Bloomberg) -- AT&T; Inc., struggling with a U.S. economic slump that left some consumers unable to pay their phone bills, now may face a slowdown in spending by corporate clients.[32] Additional information about AT&T; Inc. and the products and services provided by AT&T; subsidiaries and affiliates is available at http://www.att.com. (C) 2008 AT&T; Intellectual Property.[9]

U-verse is an IPTV (Internet protocol television) service, which has the capability of offering an endless number of stations, on call-up as opposed to the one-way dump of traditional cable TV. AT&T; launched U-verse in the Bay Area in December 2006, with initial availability in the East Bay in San Ramon and Danville.[13]

The company's total number of employees, about 310,000, was expected to remain unchanged however, as AT&T; hired people in other areas, the company said.[19] AT&T; has been the exclusive U.S. carrier for the iPhone since it went on sale in June.[15] Digital Media Sales Executive Details: Digital Media Sales Executive / Sales. seeking a Digital Media Sales Executive. creating digital media sponsorship packages. Nortel PBX Field Tech Details: Job Description: Nortel PBX Field Technician Location: New York, NY Our client, a leading service integrator of cutting-edge communication technologies, offers an exciting workplace for those who are ready to excel in the telecommunications industry.[4] The fast food giant. New York City mayor Michael Rubens Bloomberg, who is also the founder of financial news and data company Bloomberg L.P., has denied rumors that he is pondering a takeover of The New York. The U.S. Federal Communications Commission had its widely anticipated hearing on broadband access and management practices.[3] Eric joined Barron's as a feature writer in New York in 1988, after four years at the Dow Jones news wires. In 1995, he moved to California as the magazine's first reporter in Silicon Valley, creating the Plugged In column.[45] Generally bringing business in first, may be bringing employees in, a lot of work to do in rationalizing the access and how traffic is carried. We'll continue to be in the market throughout this year, next year.[43]

The company announced 4,650 additional firings April 18 to reduce the number of middle managers in the home-phone business, Bloomberg financial news agency reported.[41] Since that, about 4% of new customers are signing up at $99. Number of new customers coming in at those price points is up 2.5-3x.[43] Prior to pricing changes, about 1.5% of new customers would sign up for rate plans at $99 or above.[43]

Just starting to see BlackBerry 3G come out. As those integrated devices move to 3G, that will drive stronger 3G growth. New customers today. many times going to 3G. If buying an integrated device in the future, they will be going to 3G. That will increase penetration there.[43]

Thinking internally about target or goal on churn? On flow share on wireless? iPhone meaningful impact? In terms of wireless churn: We're pleased with churn. [43] "Notably, even with the iPhone and the recently reduced price point of the handset, post-paid net adds were 705,000 in the quarter, essentially flat with the year-ago 680,000 post-paid net add figure," King said in a note.[26] Total average monthly subscriber churn, which includes postpaid, prepaid and reseller subscribers, was 1.7%, flat with the previous-year quarter.[11]

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43. AT&T; Q1 Solid, No Scary Recession Talk, No iPhone Update (T) - Silicon Alley Insider
44. AT&T; Says IPhone Sales Stable Despite Talk Of Shortages
45. Tech Trader Daily - Barron's Online : AT&T; Says iPhone Sales "Stable," Won't Give Numbers
46. AT & T profit rises 22% on wireless - Los Angeles Times
47. Technology briefs | Lubbock Avalanche-Journal
48. TheTandD.com | AT&T; to cut about 4,600 jobs, sees $374 million 1Q charge
49. AT&T; Reports Strong Q1 Results, iPhone Sales "Stable" || The Mac Observer

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Wireless Unit Lifts AT&T; Profit 22%

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