AT&T (T) 8-K AT&T Ramps Revenue Growth, Delivers

Financial Data
AT&T Inc.
Consolidated Statements of Income
Dollars in millions except per share amounts
Unaudited	Three Months Ended
	3/31/2008		3/31/2007		% Chg
Operating Revenues
Voice	$	9,693	$	10,455		-7.3	%
Data		5,972		5,655		5.6	%
Wireless service		10,605		9,070		16.9	%
Directory		1,398		1,022		36.8	%
Other		3,076		2,767		11.2	%
Total Operating Revenues		30,744		28,969		6.1	%
Operating Expenses
Cost of services and sales (exclusive of
depreciation and amortization shown separately below)		11,775		11,252		4.6	%
Selling, general and administrative		8,086		7,437		8.7	%
Depreciation and amortization		4,903		5,616		-12.7	%
Total Operating Expenses		24,764		24,305		1.9	%
Operating Income		5,980		4,664		28.2	%
Interest Expense		865		873		-0.9	%
Equity in Net Income of Affiliates		243		173		40.5	%
Other Income (Expense) - Net		33		504		-93.5	%
Income Before Income Taxes		5,391		4,468		20.7	%
Income Taxes		1,930		1,620		19.1	%
Net Income	$	3,461	$	2,848		21.5	%
Basic Earnings Per Share	$	0.58	$	0.46		26.1	%
Weighted Average Common
Shares Outstanding (000,000)		5,997		6,224		-3.6	%
Diluted Earnings Per Share	$	0.57	$	0.45		26.7	%
Weighted Average Common
Shares Outstanding with Dilution (000,000)		6,033		6,266		-3.7	%

Financial Data
AT&T Inc.
Statements of Segment Income
Dollars in millions
Unaudited
	Three Months Ended
Wireless	3/31/2008			3/31/2007			% Chg
Segment Operating Revenues
Service	$	10,645		$	9,092			17.1	%
Equipment		1,180			905			30.4	%
Total Segment Operating Revenues		11,825			9,997			18.3	%
Segment Operating Expenses
Cost of services and equipment sales		4,110			3,670			12.0	%
Selling, general and administrative		3,279			2,913			12.6	%
Depreciation and amortization		1,480			1,891			-21.7	%
Total Segment Operating Expenses		8,869			8,474			4.7	%
Segment Operating Income		2,956			1,523			94.1	%
Equity in Net Income of Affiliates		2			7			-71.4	%
Minority Interest		(60	)		(48	)		-25.0	%
Segment Income	$	2,898		$	1,482			95.5	%
Wireline
Segment Operating Revenues
Voice	$	9,919		$	10,677			-7.1	%
Data		6,205			5,862			5.9	%
Other		1,500			1,447			3.7	%
Total Segment Operating Revenues		17,624			17,986			-2.0	%
Segment Operating Expenses
Cost of sales		7,616			7,558			0.8	%
Selling, general and administrative		4,005			4,093			-2.2	%
Depreciation and amortization		3,170			3,440			-7.8	%
Total Segment Operating Expenses		14,791			15,091			-2.0	%
Segment Income	$	2,833		$	2,895			-2.1	%
Advertising & Publishing
Segment Operating Revenues	$	1,417		$	1,443			-1.8	%
Segment Operating Expenses
Cost of sales		444			455			-2.4	%
Selling, general and administrative		343			279			22.9	%
Depreciation and amortization		212			242			-12.4	%
Total Segment Operating Expenses		999			976			2.4	%
Segment Income	$	418		$	467			-10.5	%
Other
Segment Operating Revenues	$	544		$	544			-
Segment Operating Expenses		770			464			65.9	%
Segment Operating Income(Loss)		(226	)		80			-
Equity in Net Income of Affiliates		241			172			40.1	%
Segment Income	$	15		$	252			-94.0	%

Financial Data
AT&T Inc.
Consolidated Balance Sheets
Dollars in millions except per share amounts
	3/31/08			12/31/07
	Unaudited
Assets
Current Assets
Cash and cash equivalents	$	1,963		$	1,970
Accounts receivable - net of allowances for
uncollectibles of $1,361 and $1,364		15,697			16,185
Prepaid expenses		1,610			1,524
Deferred income taxes		1,934			2,044
Other current assets		2,742			2,963
Total current assets		23,946			24,686
Property, Plant and Equipment - Net		96,238			95,890
Goodwill		70,815			70,713
Licenses		40,711			37,985
Customer Lists and Relationships - Net		13,692			14,505
Other Intangible Assets - Net		5,877			5,912
Investments in Equity Affiliates		2,578			2,270
Postemployment Benefit		17,645			17,291
Other Assets		6,697			6,392
Total Assets	$	278,199		$	275,644
Liabilities and Stockholders' Equity
Current Liabilities
Debt maturing within one year	$	13,301		$	6,860
Accounts payable and accrued liabilities		18,590			21,399
Advanced billing and customer deposits		3,677			3,571
Accrued taxes		4,186			5,027
Dividends payable		2,375			2,417
Total current liabilities		42,129			39,274
Long-Term Debt		60,189			57,255
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes		25,203			24,939
Postemployment benefit obligation		24,510			24,011
Unamortized investment tax credits		144			150
Other noncurrent liabilities		13,766			14,648
Total deferred credits and other noncurrent liabilities		63,623			63,748
Stockholders' Equity
Common shares issued ($1 par value)		6,495			6,495
Capital in excess of par value		91,598			91,638
Retained earnings		34,311			33,297
Treasury shares (at cost)		(19,590	)		(15,683	)
Accumulated other comprehensive loss		(556	)		(380	)
Total stockholders' equity		112,258			115,367
Total Liabilities and Stockholders' Equity	$	278,199		$	275,644

Financial Data
AT&T Inc.
Consolidated Statements of Cash Flows
Dollars in millions, increase (decrease) in cash and cash equivalents
Unaudited	Three Months Ended
	3/31/08			3/31/07
Operating Activities
Net income	$	3,461		$	2,848
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization		4,903			5,616
Undistributed earnings from investments in equity affiliates		(225	)		(156	)
Provision for uncollectible accounts		480			376
Amortization of investment tax credits		(6	)		(8	)
Deferred income tax expense		569			65
Net gain on sales of investments		(46	)		-
Gain on license exchange		-			(409	)
Changes in operating assets and liabilities:
Accounts receivable		(150	)		237
Other current assets		142			(748	)
Accounts payable and accrued liabilities		(4,654	)		(3,232	)
Stock-based compensation tax benefit		(7	)		(47	)
Other - net		490			71
Total adjustments		1,496			1,765
Net Cash Provided by Operating Activities		4,957			4,613
Investing Activities
Construction and capital expenditures		(4,247	)		(3,338	)
Acquisitions, net of cash acquired		(3,662	)		(198	)
Dispositions		47			209
Proceeds from sale of securities, net of investments		131			518
Other		32			7
Net Cash Used in Investing Activities		(7,699	)		(2,802	)
Financing Activities
Net change in short-term borrowings with
original maturities of three months or less		5,786			(2,989	)
Issuance of long-term debt		3,972			5,924
Repayment of long-term debt		(613	)		(227	)
Purchase of treasury shares		(4,071	)		(3,005	)
Issuance of treasury shares		103			687
Dividends paid		(2,422	)		(2,218	)
Stock-based compensation tax benefit		7			47
Other		(27	)		(84	)
Net Cash Provided by (Used in) Financing Activities		2,735			(1,865	)
Net decrease in cash and cash equivalents		(7	)		(54	)
Cash and cash equivalents beginning of year		1,970			2,418
Cash and Cash Equivalents End of Period	$	1,963		$	2,364

Financial Data
AT&T Inc.
Supplementary Operating and Financial Data
Dollars in millions except per share amounts
Unaudited	Three Months Ended
	3/31/2008			3/31/2007			% Chg
Wireless
Wireless Customers (000)		71,367			62,217			14.7	%
Net Customer Additions (000)		1,295			1,191			8.7	%
M&A Activity, Partitioned Customers and Other Adjs. (000)		20			64			-68.8	%
Postpaid Customers (000)		56,016			50,588			10.7	%
Net Postpaid Customer Additions (000)		705			680			3.7	%
Postpaid Churn		1.2	%		1.3	%	-10 B		P
Licensed POPs (000,000)		304			296			2.7	%
In-Region Wireline 1
Total Consumer Revenue Connections (000) 8
Retail Consumer Primary Switched/VoIP connections 2		30,316			32,315			-6.2	%
Retail Consumer Additional Switched/VoIP connections 2		3,866			4,345			-11.0	%
Consumer Broadband Connections 3		12,547			10,908			15.0	%
Video Connections: 4
Satellite Connections		2,232			1,684			32.5	%
U-verse Video Connections		379			13			-
Total Consumer Revenue Connections (000)		49,340			49,265			0.2	%
Net Consumer Revenue Connections Changes (000)		(98	)		404			-
Switched Access Lines (000) 8
Retail Consumer - Primary		30,312			32,315			-6.2	%
Retail Consumer - Additional		3,866			4,345			-11.0	%
Retail Business		22,647			23,318			-2.9	%
Retail		56,825			59,978			-5.3	%
Wholesale 5		3,407			5,136			-33.7	%
Coin 6		183			315			-41.9	%
Total Switched Access Lines (000)		60,415			65,429			-7.7	%
Net Switched Access Line Changes (000)		(1,167	)		(1,040	)		12.2	%
Total Broadband Connections (000) 3, 8		14,647			12,861			13.9	%
Net Broadband Connections Changes (000) 3, 8		491			691			-28.9	%
Video Connections (000) 4		2,611			1,697			53.9	%
Net Video Connections Changes (000) 4		264			187			41.2	%
AT&T Inc.
Capital Expenditures	$	4,247		$	3,338			27.2	%
Dividends Declared per Share	$	0.4000		$	0.3550			12.7	%
End of Period Common Shares Outstanding (000,000)		5,939			6,186			-4.0	%
Debt Ratio 7		39.6	%		35.4	%	420 B		P
Total Employees		310,070			301,760			2.8	%

1	In-region wireline represents access lines served by AT&T's incumbent local exchange companies.
2	Primarily switched access lines.  Also includes VoIP.
3	Broadband connections include DSL lines, U-verse high speed Internet access and satellite broadband.
4	Video connections include sales under agency agreements with EchoStar and DirecTV customers and U-verse connections.
5	Wholesale lines include 0.2 million lines purchased by AT&T Corp. at 03/31/08 and 1.1 million at 03/31/07.
6	Coin includes both retail and wholesale access lines.
7	Total long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity.
8	Prior year amounts restated to conform to current period reporting methodology.

Financial Data
AT&T Inc.
Non-GAAP Wireless Reconciliations
Wireless Segment AdjustedOIBDA
Dollars in Millions
Unaudited
Quarter Ended March 31, 2008					Adjusting Items
	GAAP				Intangible Amortization			Adjusted
Service Revenues	$	10,645						$	10,645
Equipment Revenues		1,180							1,180
Total Operating Revenues	$	11,825			$	-		$	11,825
Operating Expenses
Cost of Services and Equipment Sales		4,110				-			4,110
Selling, General and Administrative		3,279				-			3,279
Depreciation and Amortization		1,480				(568	)		912
Total Operating Expenses		8,869				(568	)		8,301
Operating Income		2,956							3,524
Plus: Depreciation and Amortization		1,480							912
OIBDA		4,436							4,436
OIBDA as a % of Service Revenue		41.7	%						41.7	%
Quarter Ended March 31, 2007				Adjusting Items
	GAAP				Integration Costs			Intangible Amortization			Adjusted
Service Revenues	$	9,092									$	9,092
Equipment Revenues		905										905
Total Operating Revenues	$	9,997			$	-		$	-		$	9,997
Operating Expenses
Cost of Services and Equipment Sales		3,670				(20	)		-			3,650
Selling, General and Administrative		2,913				(104	)		-			2,809
Depreciation and Amortization		1,891				(85	)		(813	)		993
Total Operating Expenses		8,474				(209	)		(813	)		7,452
Operating Income		1,523										2,545
Plus: Depreciation and Amortization		1,891										993
OIBDA		3,414										3,538
OIBDA as a % of Service Revenue		37.5	%									38.9	%

 OIBDA is defined as operating income (loss) before depreciation and amortization.  OIBDA differs from segment operating income (loss), as calculated in accordance with generally accepted accounting principles (GAAP), in that it excludes depreciation and amortization.  OIBDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses.  OIBDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with GAAP.  Our calculation of OIBDA, as presented, may differ from similarly titled measures reported by other companies.

Financial Data
AT&T Inc.
Non-GAAP Consolidated Reconciliations
Reconciliation of Free Cash Flow and Free Cash Flow Yield
Dollars in Millions, Except for Share Price
unaudited
March 31, 2008	Trailing Twelve Months
Net cash provided by operating activities	$	34,416
Less: Construction and capital expenditures		18,626
Free Cash Flow	$	15,790
End of Period Share Price	$	38.30
End of Period Shares Outstanding (Ms)		5,939
Market Capitalization	$	227,464
Free Cash Flow Yield		6.9	%

Free cash flow yield is based upon cash from continuing operations less capital expenditures as a percentage of market capitalization computed on 03/31/08.  Market capitalization is computed by multiplying the end of period share price by the end of period shares outstanding as of 03/31/08.

Financial Data
AT&T Inc.
Non-GAAP Consolidated Reconciliations
Adjusted and Reported Wireline Operating Expenses
Dollars in Millions
Unaudited
	Three Months Ended
	3/31/08		3/31/07		YoY % Change
Reported Wireline Operating Expenses	$	14,791	$	15,091		-2.0	%
Operating Adjustments
Cash Integration Costs		-		86		-100.0	%
Intangible Amortization		421		630		-33.2	%
Total Adjusting Items		421		716		-41.2	%
Adjusted Wireline Operating Expenses	$	14,370	$	14,375		0.0	%

Adjusted Wireline operating expenses differs from reported operating expenses in that it excludes the merger-related expenses shown above and provides additional comparability to prior periods.