What were the key strategic drivers and recent major events impacting AT&T at the time of this filing?

The primary strategic drivers for AT&T were the integration of the significant acquisitions of BellSouth (December 2006) and AT&T Corp. (November 2005). These integrations aimed to consolidate operations, expand the company's geographic reach, and enhance its service portfolio, particularly in wireless and broadband.

How is AT&T investing in future growth areas, particularly in technology and services?

AT&T is heavily investing in expanding its U-verse high-speed broadband and TV services, with ongoing deployment efforts and a focus on developing integrated wireline and wireless IP-based services. Additionally, the company is enhancing its 3G wireless network capabilities to support growing demand for high-speed data services.

What is the company's competitive positioning in its key segments, especially wireless and broadband?

In the wireless segment, AT&T Mobility is a leading provider in the U.S. with over 70 million customers, focusing on innovative services like exclusive devices and mobile-to-mobile calling to retain and attract subscribers. In broadband, the U-verse service is positioned as a key growth area, aiming to compete by offering integrated entertainment and internet services.

What are the primary risks AT&T faces as outlined in the filing?

Key risks include adverse economic changes, evolving technology and associated deployment costs, regulatory and legislative changes (especially from the FCC and state commissions), increasing competition from alternative technologies (like cable and VoIP), the successful integration of acquired businesses, and potential litigation, including intellectual property claims. The timing and cost of U-verse deployment are also highlighted as significant risk factors.

AT&T INC. 10-K FY2008 Annual Report — Revenue, Net Income, EPS

Summary

This 2008 10-K filing for AT&T Inc. covers the fiscal year ending February 25, 2008, and provides a comprehensive overview of the company's business operations, financial condition, and risk factors. A key focus is the integration of recent major acquisitions, notably BellSouth in December 2006 and AT&T Corp. (ATTC) in November 2005, which significantly expanded AT&T's footprint and service offerings. The company is actively investing in its U-verse high-speed broadband and TV services and its 3G wireless network, positioning itself for growth in data and integrated communications services.

Financial Highlights

46 data points

Beta

Revenue

$123.44B

0.5% Gross Margin

Net Income

-$2.63B

-0.0% Net Margin

EPS (Diluted)

$-0.44

Total Assets

$265.25B

Cash & Equivalents

$1.73B

Free Cash Flow

$33.61B

Financial Statements

Beta

Revenue	$123.44B
Cost of Revenue	$56.69B
Gross Profit	$66.75B
SG&A Expenses	$48.77B
Operating Expenses	$125.13B
Operating Income	-$1.69B
Interest Expense	$3.37B
Net Income	-$2.63B
EPS (Basic)	$-0.44
EPS (Diluted)	$-0.44
Shares Outstanding (Diluted)	5.96B

Key Highlights

1AT&T is in the process of integrating its substantial acquisitions of BellSouth and AT&T Corp., aiming to consolidate operations and expand its market reach.
2The company is heavily investing in its U-verse high-speed broadband and TV service, with plans for expanded deployment and continued technological development.
3AT&T Mobility, the company's wireless division, serves approximately 70.1 million customers as of December 31, 2007, and is a leading provider of wireless voice and data services in the U.S.
4The company is focused on growing its wireless data revenues, which represent an increasing share of overall subscriber revenue, and capitalizing on demand for wireless data services.
5Wireline operations remain a significant revenue driver, providing voice, data, and other services to a large base of retail and wholesale customers.
6AT&T is actively involved in research and development, particularly in areas like IP, advanced network design, and data mining, with R&D expenses totaling $985 million in 2007.
7The company's financial reporting includes distinct segments for wireless, wireline, advertising & publishing, and other operations, with wireless and wireline being the primary revenue generators.

AT&T INC. Annual Report, Year Ended Feb 26, 2008

Summary

Financial Highlights

Key Highlights

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