AT&T, which is being acquired by SBC Communications for $16 billion, reported $520 million third-quarter profits on revenues that declined less than had been expected and were offset by cost reductions. Net income was 64 cents per share compared with a loss of $7.15 billion, or $8.99 per share, a year earlier. Revenue fell 13.3 per cent to $6.6 billion. AT&T raised its sales forecast for the year to at least $26.5 billion. Sales in business services fell 9.5 per cent to $5.1 billion. But revenues from IP and enhanced services grew 7.3 per cent. Assuming the acquisition deal is approved, SBC plans to cut a further 13,000 jobs from the combined company to generate $15 billion in savings and additional revenue. So far, 33 states and Washington, DC have approved the deal; it needs to be approved by another three states and federal regulators.
