AT&T Revenue Slide Slows

The company posts earnings hit by any number of large charges.
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AT&T's (T) - Get Report top-line numbers are still sliding, but not as steeply as expected.

The Bedminster, N.J., phone giant's adjusted net income was 62 cents a share on sales of $6.76 billion in the second quarter ended in June. Those numbers compare with a 66-cent profit on $7 billion in revenue in the prior period and earnings of 17 cents on $7.6 billion in the year-ago quarter.

Analysts were looking for an adjusted profit of 53 cents a share, on $6.6 billion in revenue, according to Thomson First Call.

On a GAAP basis, the company earned $307 million, or 38 cents a share. That's after subtracting $206 million in debt repurchases, $59 million in merger-related costs and $36 million in restructuring charges in the quarter.

The results "demonstrate our continued focus on executing in the marketplace, managing costs and strengthening our competitive position with enterprise customers," CEO Dave Dorman said in a press release.

Shareholders approved the pending $16 billion merger of AT&T and



, and observers expect regulators to give the deal an OK in the next two months.

The company now says sales probably won't slump as much as previously forecast for 2005, and AT&T now expects it could exceed its $26 billion revenue target. Analysts expect full-year sales of $26.2 billion, according to Thomson First Call.

AT&T shares rose 4 cents to $19.19 in postclose trading Wednesday.