AT&T ( T) swung to a third-quarter profit off last year's asset-writedown-driven multibillion-dollar deficit.

The Bedminster, N.J., telco, which is due to be acquired by SBC ( SBC) in coming months, made $520 million, or 64 cents a share, for the quarter ended Sept. 30. That reverses a year-ago loss of $7.15 billion, or $8.99 a share. The latest quarter includes a 6-cent charge on aircraft lease investments. Last year AT&T took an $11 billion pretax asset-impairment charge and $1.1 billion in restructuring charges.

Revenue fell 13% from a year ago to $6.6 billion, driven by the continued erosion of the company's long distance business. Business revenue dropped 9.5% to $5.1 billion. Long-distance voice revenue dropped 13%, data revenue slid 11% and local voice revenue plunged 20%. Consumer revenue dropped 24%, in part because of lower revenue from so-called bundling, the selling of multiple services to one customer.

"AT&T's solid third-quarter results demonstrate the successful execution of our strategies across both our consumer and business portfolios," said CEO David W. Dorman. "We've expanded our margins in the consumer and small business markets as we wind down these businesses, and our enterprise portfolio has benefited from significant cost structure improvement, revenue and volume growth in IP and enhanced services and share expansion in other product lines."

AT&T was ready to open Friday at $18.58.