Lucent Technologies Reports Results for the Fourth Quarter and Fiscal Year 2006

MURRAY HILL, N.J., Oct. 24 /PRNewswire-FirstCall/ -- Lucent Technologies today reported results for the fourth quarter and fiscal year 2006, which ended Sept. 30, 2006, in accordance with U.S. generally accepted accounting principles (GAAP). For the quarter, Lucent reported net income of $371 million or 7 cents per diluted share. These results compare with net income of $79 million or 2 cents per diluted share in the third quarter of fiscal 2006, and net income of $372 million or 7 cents per diluted share in the year-ago quarter.

The company reported revenues of $2.56 billion in the quarter, an increase of 25 percent sequentially and an increase of 5 percent from the year-ago quarter. The company's revenues were $2.05 billion in the third quarter of fiscal 2006 and $2.43 billion in the year-ago quarter.

The fourth quarter's earnings per share included a positive impact of $73 million, or about 1 cent per diluted share, for discrete tax items and the reversal of U.S. deferred taxes. Similar items did not have a material impact in quarter ended June 30, 2006. In the year-ago quarter, earnings per share included a positive impact of $128 million, or about 2 cents per diluted share, primarily due to income tax items.(1)

For the fiscal year, Lucent reported revenues of $8.80 billion, a decrease of 7 percent compared with $9.44 billion in revenues for fiscal 2005. The net income for fiscal 2006 was $527 million or 11 cents per diluted share compared with net income of $1.19 billion or 24 cents per diluted share in fiscal 2005. Significant items previously identified in our quarterly earnings releases had a negative impact of $247 million, or about 5 cents per diluted share, on net income in fiscal 2006, and a positive impact of about $352 million, or about 7 cents per diluted share, on net income in fiscal 2005. The significant items included, among other things, two significant litigation charges related to the Winstar judgment and the shareowner settlement, as well as benefits from certain discrete tax items and recoveries of bad debt and customer financing.(1)

EXECUTIVE COMMENTARY

"We are pleased to have ended what's been a challenging year with a strong quarter. As anticipated, we posted our highest quarterly revenue period for the year, driven primarily by mobility deployments in North America, and we recorded a gross margin of 44 percent," said Lucent Technologies Chairman and CEO Patricia Russo.

"In addition to the rollout of our EV-DO Rev A and HSDPA solutions during the quarter, we also continued to convert IMS trials into contracts, announcing that KPN, The Netherlands' largest service provider, had selected Lucent's IP Multimedia Subsystem solution (IMS) to replace its legacy public switched-network. Lucent Worldwide Services, was also chosen as the prime integrator for the migration to KPN's All-IP network," added Russo.

"During the fiscal year, we added 6 customers for our IMS portfolio, announced more than 70 contracts in 25 countries, and saw revenue growth in UMTS, professional services, data, optical and applications," said Russo. "We also continued to lead the market in CDMA, including the introduction of EV-DO Rev A to support next-generation services."

"In fiscal 2006, we essentially maintained our annual U.S. revenue level, given our improved revenue performance in the fourth quarter," said Lucent Technologies Chief Financial Officer John Kritzmacher. "Outside the U.S., our annual revenues decreased by about $600 million, and as expected, roughly $500 million of the decrease came from the combined revenues for China and to a lesser extent India. Notwithstanding the fiscal 2006 revenue decline, we achieved an annual gross margin rate of 42 percent and continued to invest in the areas that are critical to our vision of next-generation networks."

Given the company's pending merger transaction with Alcatel, it is continuing its practice of not providing specific quarterly or annual guidance.

MERGER UPDATE

On September 7, 2006, shareholders of Alcatel and Lucent approved the proposed merger agreement. The companies continue to believe they are on track to complete their merger transaction by the end of calendar year 2006.

"With another key milestone behind us following the successful shareholder votes, we are moving closer to the integration of our two companies. We continue to make excellent progress on our integration planning to ensure a smooth transition from Day 1," said Russo. "We look forward to the successful closure of the merger transaction."

GROSS MARGIN AND OPERATING EXPENSES

Gross margin for the fourth quarter of fiscal 2006 was 44 percent of revenues as compared with 41 percent in the third quarter of fiscal 2006 and 46 percent in the year-ago quarter. For the fiscal year, gross margin was 42 percent as compared with 44 percent for fiscal 2005.

Operating expenses for the fourth quarter of fiscal 2006 were $739 million as compared with $665 million for the third quarter of fiscal 2006 and $810 million in the year-ago quarter. For the fiscal year, operating expenses were $3.02 billion as compared with $2.86 billion for fiscal 2005.

Gross margin and operating expenses for fiscal 2006 reflect a total reduction of approximately $300 million in annual and long-term employee incentive awards as compared with fiscal 2005.

The net pension and postretirement benefit credit for the fourth quarter was $107 million, compared with $104 million in the third quarter of fiscal 2006 and $185 million in the year-ago quarter. For the fiscal year, the net pension and postretirement credit was $429 million as compared with $718 million for fiscal 2005.

BALANCE SHEET UPDATE

As of September 30, 2006, Lucent had $3.4 billion in cash and marketable securities, a decrease of $254 million from the quarter ended June 30, 2006. The decrease was driven by the $368 million repayment of certain debt obligations in July.

REVIEW OF OPERATIONS - THREE MONTHS ENDED SEPTEMBER 30, 2006

On a sequential basis, revenues in the United States increased 40 percent to $1.77 billion, and revenues outside the United States increased 1 percent to $789 million. Compared with the year-ago quarter, U.S. revenues increased by 17 percent and revenues outside the U.S. decreased by 14 percent.

Revenues and operating income for Lucent's segments are included in Exhibit D in the accompanying financial reporting package.

HIGHLIGHTS

Lucent continued to make announcements related to key technologies for next-generation networks, including: IMS, VoIP, 3G mobile networks, services, next-generation optical solutions, broadband access and applications.

IMS/VoIP: Lucent made further market progress for its advanced multimedia networking solutions and announced agreements with:

-- KPN to supply our IMS solution, which will replace its legacy network while supporting both new and existing services. -- Manx Telecom, a subsidiary of O2, to expand its IMS-based converged network for VoIP, data and video services. -- Vodafone Italy to provide an intelligent network solution for its "Vodafone Casa" service, enabling customers to use mobile phones as home phones and mobile devices.

3G Mobile Networks: Lucent continued to build on its momentum in (3G) mobile networking solutions.

-- Just last week, Sprint selected Lucent to develop software and infrastructure necessary to enable push-to-talk services on its CDMA2000 1xEV-DO Rev A network. Lucent Services will provide network integration, program management, testing operational readiness and deployment services. -- Sky Link, the largest CDMA450 operator in Russia and Commonwealth of Independent States (CIS), chose Lucent to upgrade existing Lucent - supplied base stations with CDMA2000 1xEV-DO technology.

Services: Lucent's network transformation, network integration and other services solutions were components of 10 contracts announced around the world during the quarter.

-- Lucent signed a network integration and program management contract with KPN to manage the deployment and integration of its All IP network. -- Manx Telecom selected Lucent to provide network installation, design, integration and migration services, and VitalSuite(R) network management products for its next-generation converged fixed/mobile network. -- Lucent was chosen, as part of a Boeing-led team awarded a secure border contract by the Department of Homeland Security, to provide R&D, technical and services expertise in wireless, network integration, and security. -- In October, Lucent announced an agreement with VIVO, the largest mobile operator in the Southern Hemisphere, to provide technical support and maintenance services for its 3G CDMA2000 1X and 1xEV-DO network.

Next-generation optical, broadband access and applications: Lucent made significant progress in IPTV, demonstrated its expertise in next-generation applications for the delivery of communications services, and delivered its next-generation networking portfolio

-- Japan's NTTPC deployed Lucent's Metropolis(R) Wavelength Services Manager (WSM) throughout its network in Tokyo, increasing network capacity to support IP-based services. -- Lucent announced that it would acquire Mobilitec, a leading provider of content management software for wireless service providers, to enable service providers to offer personalized content for mobile and broadband subscribers. -- Updata, a broadband solutions provider in the U.K., selected the Lucent Ethernet Router 15100 -- from Riverstone Networks -- to support high- speed data services for local government customers in the U.K. And in October, Telefonica selected the Ethernet Router 15800 to support growth for its "Imagenio" IPTV service. -- Just this month, Lucent unveiled MiViewTV(TM), a comprehensive IPTV software suite, enabling operators to offer next-generation services available anytime, on any device.

The quarterly earnings conference call will take place today at 8:30 a.m. EDT and be broadcast live over the Internet at http://www.lucent.com/investor. It is expected to be maintained on the site for replay through Tuesday, October 31, 2006.

Lucent Technologies designs and delivers the systems, services and software that drive next-generation communications networks. Backed by Bell Labs research and development, Lucent uses its strengths in mobility, optical, software, data and voice networking technologies, as well as services, to create new revenue-generating opportunities for its customers, while enabling them to quickly deploy and better manage their networks. Lucent's customer base includes communications service providers, governments and enterprises worldwide. For more information on Lucent Technologies, which has headquarters in Murray Hill, N.J., USA, visit http://www.lucent.com/.

This news release contains statements regarding the proposed transaction between Lucent and Alcatel, the expected timetable for completing the transaction, future financial and operating results, benefits and synergies of the proposed transaction and other statements about Lucent managements' future expectations, beliefs, goals, plans or prospects that are based on current expectations, estimates, forecasts and projections about Lucent and Alcatel and the combined company, as well as Lucent's and the combined company's future performance and the industries in which Lucent and Alcatel operate and the combined company will operate, in addition to managements' assumptions. Words such as "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," variations of such words and similar expressions are intended to identify such forward-looking statements which are not statements of historical facts. These forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to assess. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. These risks and uncertainties are based upon a number of important factors including, among others: the ability to consummate the proposed transaction; difficulties and delays in obtaining regulatory approvals for the proposed transaction; difficulties and delays in achieving synergies and cost savings; potential difficulties in meeting conditions set forth in the definitive merger agreement entered into by Lucent and Alcatel; fluctuations in the telecommunications market; the pricing, cost and other risks inherent in long-term sales agreements; exposure to the credit risk of customers; reliance on a limited number of contract manufacturers to supply products we sell; the social, political and economic risks of our respective global operations; the costs and risks associated with pension and postretirement benefit obligations; the complexity of products sold; changes to existing regulations or technical standards; existing and future litigation; difficulties and costs in protecting intellectual property rights and exposure to infringement claims by others; and compliance with environmental, health and safety laws. For a more complete list and description of such risks and uncertainties, refer to Lucent's annual report on Form 10-K for the year ended September 30, 2005 and quarterly reports on Form 10-Q for the periods ended December 31, 2005, March 31, 2006 and June 30, 2006, and proxy statement dated August 7, 2006 and Alcatel's annual report on Form 20-F for the year ended December 31, 2005, as amended as well as other filings by Lucent and Alcatel with the U.S. Securities and Exchange Commission (the "SEC"). Except as required under the U.S. federal securities laws and the rules and regulations of the SEC, Lucent disclaims any intention or obligation to update any forward-looking statements after the distribution of this news release, whether as a result of new information, future events, developments, changes in assumptions or otherwise.

(1) Details on the significant items impacting results are available in Exhibit E in the accompanying financial reporting package. LUCENT TECHNOLOGIES INC. AND SUBSIDIARIES Index to Exhibits Exhibit A Consolidated statements of operations for the three months ended September 30, 2006, June 30, 2006 and September 30, 2005 and the years ended September 30, 2006 and September 30, 2005 Exhibit B Consolidated balance sheets as of September 30, 2006, June 30, 2006 and September 30, 2005 Exhibit C Consolidated statements of cash flows for the four quarters of fiscal 2006 and the years ended September 30, 2006 and September 30, 2005 Exhibit D Segment information and revenue by geographic region Exhibit E Stock based compensation expense, pension and postretirement benefits, reconciliation of basic to diluted EPS and significant items impacting results Exhibit A LUCENT TECHNOLOGIES INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited; amounts in millions, except per share amounts) Three months ended Years ended Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30, 2006 2006 2005 2006 2005 REVENUES Products $1,917 $1,469 $1,838 $6,483 $7,221 Services 644 581 593 2,313 2,220 Total revenues 2,561 2,050 2,431 8,796 9,441 COSTS Products 957 779 902 3,315 3,734 Services 485 432 416 1,746 1,583 Total costs 1,442 1,211 1,318 5,061 5,317 Gross margin 1,119 839 1,113 3,735 4,124 Gross margin % 44% 41% 46% 42% 44% OPERATING EXPENSES Selling, general and administrative, before bad debt and customer financing 407 372 494 1,824 1,765 Provision for (recovery of) bad debt and customer financing 11 (2) 6 4 (69) Selling, general and administrative 418 370 500 1,828 1,696 Research and development 321 276 319 1,177 1,177 In-process research and development - 12 - 12 - Business restructuring - 7 (9) 4 (10) Total operating expenses 739 665 810 3,021 2,863 Operating income 380 174 303 714 1,261 Operating margin % 15% 8% 12% 8% 13% Other income, net 23 27 65 179 114 Interest expense 77 82 82 324 341 Income before income taxes 326 119 286 569 1,034 Income taxes (45) 40 (86) 42 (151) Net income $371 $79 $372 $527 $1,185 Basic earnings per share $0.08 $0.02 $0.08 $0.12 $0.27 Diluted earnings per share $0.07 $0.02 $0.07 $0.11 $0.24 Weighted average number of common shares outstanding - basic 4,482 4,479 4,445 4,469 4,426 Weighted average number of common shares outstanding - diluted 5,516 4,519 5,261 5,168 5,218 Exhibit B LUCENT TECHNOLOGIES INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited; amounts in millions, except per share amounts) Sept. 30, June 30, Sept. 30, 2006 2006 2005 Assets: Cash and cash equivalents (a) $1,337 $1,368 $2,410 Marketable securities (a) 630 588 357 Receivables, less allowances of $95, $87 and $84, respectively 1,630 1,552 1,395 Inventories 731 773 731 Other current assets 1,066 1,001 690 Total current assets 5,394 5,282 5,583 Marketable securities (a) 1,476 1,741 2,163 Property, plant and equipment, net 1,228 1,229 1,295 Prepaid pension costs 5,761 6,476 6,010 Goodwill and other acquired intangibles, net 607 611 419 Other assets 889 941 930 Total assets $15,355 $16,280 $16,400 Liabilities: Accounts payable $689 $702 $769 Payroll and benefit-related liabilities 706 958 1,095 Debt maturing within one year - 368 368 Other current liabilities 1,604 1,780 1,588 Total current liabilities 2,999 3,808 3,820 Postretirement and postemployment benefit liabilities 5,248 4,571 4,751 Pension liabilities 539 1,318 1,423 Long-term debt 5,050 5,047 5,066 Other liabilities 862 853 965 Total liabilities 14,698 15,597 16,025 Commitments and contingencies Shareowners' equity: Common stock (b) 45 45 45 Additional paid-in capital 23,670 23,645 23,513 Accumulated deficit (19,081) (19,452) (19,608) Accumulated other comprehensive loss (3,977) (3,555) (3,575) Total shareowners' equity (c) 657 683 375 Total liabilities and shareowners' equity $15,355 $16,280 $16,400 (a) Cash and cash equivalents and marketable securities amounted to $3,443, $3,697 and $4,930 as of September 30, 2006, June 30, 2006, and September 30, 2005, respectively. (b) $0.01 per share par value; 10,000 authorized shares; 4,485 issued and 4,484 outstanding as of September 30, 2006; 4,483 issued and 4,482 outstanding as of June 30, 2006; and 4,457 issued and 4,447 outstanding as of September 30, 2005. (c) Shareowners' equity was reduced by $485 during the three months ended September 30, 2006 as a result of the early adoption of FAS 158, Employer's Accounting for Defined Benefit Pension and Other Postretirement Plans. Exhibit C LUCENT TECHNOLOGIES INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited; $ in millions) Three months ended Years ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Sept. 30, 2006 2006 2006 2005 2006 2005 Operating Activities Net income (loss) $371 $79 $181 $(104) $527 $1,185 Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: Depreciation and amortization 147 138 132 127 544 599 Provision for (recovery of) bad debt and customer financing 11 (2) 2 (7) 4 (69) Deferred income taxes (50) 23 17 (2) (12) (84) Pension credit (167) (164) (162) (167) (660) (973) Stock-based compensation expense 22 19 20 24 85 35 Other adjustments for non-cash items - 28 - (35) (7) 131 Changes in operating assets and liabilities: Receivables (148) (92) (61) 41 (260) 42 Inventories and contracts in process (39) (14) (45) (15) (113) 50 Accounts payable 46 19 (39) (80) (54) (160) Deferred revenue (58) 47 152 (136) 5 (65) Other operating assets and liabilities (12) (117) (238) (170) (537) 26 Net cash provided by (used in) operating activities 123 (36) (41) (524) (478) 717 Investing Activities Capital expenditures (64) (47) (54) (30) (195) (221) Maturities, sales and purchases of marketable securities 241 258 276 (357) 418 (1,045) Acquisition of business - (200) - - (200) - Changes in restricted cash 29 10 (325) 1 (285) - Other investing activities 2 - (2) - - (2) Net cash provided by (used in) investing activities 208 21 (105) (386) (262) (1,268) Financing Activities Repayment of long- term debt (368) - - (15) (383) (547) Issuance of common stock 2 10 14 20 46 126 Other financing activities 1 (4) - - (3) - Net cash provided by (used in) financing activities (365) 6 14 5 (340) (421) Effect of exchange rate changes on cash and cash equivalents 3 - 5 (1) 7 3 Net decrease in cash and cash equivalents(31) (9) (127) (906) (1,073) (969) Cash and cash equivalents at beginning of period 1,368 1,377 1,504 2,410 2,410 3,379 Cash and cash equivalents at end of period $1,337 $1,368 $1,377 $1,504 $1,337 $2,410 Exhibit D LUCENT TECHNOLOGIES INC. AND SUBSIDIARIES SEGMENT INFORMATION* AND REVENUE BY GEOGRAPHIC REGION (Unaudited; $ in millions, except per share amounts) Three months ended Years ended Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30, 2006 2006 2005 2006 2005 Total Revenues Mobility Access and Applications Solutions $1,277 $827 $1,084 $4,051 $4,660 Multimedia Network Solutions 440 454 470 1,677 1,563 Converged Core Solutions 157 147 236 600 850 Services 644 581 593 2,313 2,220 Reportable segments 2,518 2,009 2,383 8,641 9,293 Other 43 41 48 155 148 Total revenues $2,561 $2,050 $2,431 $8,796 $9,441 U.S. Revenues Mobility Access and Applications Solutions $1,107 $655 $813 $3,360 $3,481 Multimedia Network Solutions 180 169 199 717 623 Converged Core Solutions 85 84 111 334 422 Services 359 321 343 1,317 1,263 Reportable segments 1,731 1,229 1,466 5,728 5,789 Other 41 41 48 153 147 Total U.S. revenues $1,772 $1,270 $1,514 $5,881 $5,936 Non-U.S. Revenues Mobility Access and Applications Solutions $170 $172 $271 $691 $1,179 Multimedia Network Solutions 260 285 271 960 940 Converged Core Solutions 72 63 125 266 428 Services 285 260 250 996 957 Reportable segments 787 780 917 2,913 3,504 Other 2 - - 2 1 Total non-U.S. revenues $789 $780 $917 $2,915 $3,505 Operating Income Mobility Access and Applications Solutions $506 $228 $407 $1,422 $1,704 Multimedia Network Solutions 14 26 93 127 112 Converged Core Solutions 34 20 16 70 36 Services 95 84 104 314 344 Total segment income 649 358 620 1,933 2,196 (Provision for) recovery of bad debt and customer financing (11) 2 (6) (4) 69 Business restructuring - (7) 9 (4) 10 Other (258) (179) (320) (1,211) (1,014) Total operating income $380 $174 $303 $714 $1,261 Additional Multimedia Network Solutions Revenue information Data and access $203 $240 $209 $777 $725 Optical networking 237 214 261 900 838 Total Multimedia Network Solutions revenues $440 $454 $470 $1,677 $1,563 Regional Revenues U.S. $1,772 $1,270 $1,514 $5,881 $5,936 Other Americas (Canada, Caribbean & Latin America) 191 169 198 703 728 EMEA (Europe, Middle East & Africa) 370 393 364 1,354 1,337 APaC (Asia Pacific & China) 228 218 355 858 1,440 $2,561 $2,050 $2,431 $8,796 $9,441 * Segment information for periods prior to fiscal 2006 was reclassified to conform to the current period's presentation. The reclassified information for those periods not presented is available on our investor relations website. Exhibit E LUCENT TECHNOLOGIES INC. AND SUBSIDIARIES STOCK BASED COMPENSATION EXPENSE, PENSION AND POSTRETIREMENT BENEFITS, RECONCILIATION OF BASIC TO DILUTED EPS, SUMMARY OF SIGNIFICANT ITEMS IMPACTING RESULTS (Unaudited; $ in millions, except per share amounts) Three months ended Years ended Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30, 2006 2006 2005 2006 2005 Stock based compensation expense* Costs $3 $2 $- $11 $- Selling, general and administrative 13 11 4 48 32 Research and development 6 6 1 26 3 Total stock based compensation expense $22 $19 $5 $85 $35 * Current period amounts include the impact of expensing stock options as a result of adopting SFAS 123R effective October 1, 2005. Pension and postretirement benefits Pension benefit credit ($167) ($164) ($243) ($660) ($973) Postretirement benefit cost 60 60 58 231 255 Net pension and postretirement benefit credit ($107) ($104) ($185) ($429) ($718) Reconciliation of basic to diluted EPS: Three months ended Years ended Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30, 2006 2006 2005 2006 2005 Net income - basic $371 $79 $372 $527 $1,185 Adjustment for dilutive securities on net income: Interest expense for 7.75% convertible securities - - - - 1 Interest expense for 2.75% convertible securities 11 - 11 45 45 Interest expense for 8.00% convertible securities 10 - 10 - 40 Net income - diluted $392 $79 $393 $572 $1,271 Weighted average number of shares outstanding - basic 4,482 4,479 4,445 4,469 4,426 Effect of dilutive securities: Stock options 30 40 54 42 60 Warrants - - 17 - 15 7.75% convertible securities - - - - 8 2.75% convertible securities 773 - 570 651 542 8.00% convertible securities 231 - 175 6 167 Weighted average number of shares outstanding - diluted 5,516 4,519 5,261 5,168 5,218 EPS: Basic $0.08 $0.02 $0.08 $0.12 $0.27 Diluted $0.07 $0.02 $0.07 $0.11 $0.24

Certain securities have been excluded from the above calculations for all periods presented because the effect of adjusting net income for the related interest and the number of common shares for which they would be converted or redeemed was antidilutive.

Significant items impacting results: Three months ended Years ended Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30, 2006 2006 2005 2006 2005 Winstar judgment $- $- $- ($278) $- Shareowner settlement - - - - (54) Recovery of bad debt and customer financing N/S N/S N/S N/S 75 Business restructuring N/S N/S 9 N/S 10 Payroll related liability adjustment N/S N/S N/S N/S 40 Early extinguishment of debt obligations N/S N/S (2) N/S (11) Discrete and other income tax items 73 ** N/S 121 31 ** 292 Total $73 $- $128 ($247) $352 Per share impact - basic $0.02 $- $0.03 ($0.06) $0.08 Per share impact - diluted $0.01 $- $0.02 ($0.05) $0.07 N/S - Current period amounts are not presented as they are not significant. ** - September 30, 2006 quarter includes US deferred income tax reversal of $42 that was previously provided for during the nine months ended June 30, 2006. The above significant items impacting results were reflected in: Costs $- $- $- $- $12 Operating expenses - - 9 (278) 113 Other income, net - - - - (3) Income taxes 73 - 119 31 230 Net income $73 $- $128 ($247) $352