Alcatel-Lucent announcing the third quarter revenue presented a rosy picture about the future about the telecom equipment maker as the company started responding well in line with its new Shift Plan strategy.
TelecomLead.com is presenting Alcatel-Lucent third quarter revenue highlights
Alcatel-Lucent third quarter revenue increased 7 percent year-on-year to Euro 3,668 million. Alcatel-Lucent reported net loss of Euro 200 million for the period.
The Core Networking segment grew 6.0 percent, driven by IP Routing.
In the Access segment, both Wireless and Fixed Networks enjoyed a strong performance, driven by broadband roll-outs partially offset by declines in legacy technologies. This is partially offset by the decrease in revenues from Managed Services.
Revenue from North America rose 20 percent.
China was stable in terms of revenues. Alcatel-Lucent does not share India specific data.
APAC declined 4 percent.
Western Europe grew more than 5 percent.
LTE strategy worked well and Alcatel-Lucent bagged Sprint, Telefónica and China Mobile deals.
Wireless access grew 18 percent with LTE revenue more than doubling. US, Asia-Pacific and EMEA chipped in substantial growth. This will be a big worry for NSN, Ericsson, Huawei and ZTE – all are focusing on major LTE deals.
Deals with Verizon, AT&T and Sprint supported the third quarter sales growth.
Access was back to profitability after several quarters of losses with a strong contribution from fixed networks.
Core Networking and Access segments are contributing to the cash flow.
IP routing rose 15 percent, driven notably by APAC and a second quarter of growth in EMEA.
IP transport grew 1.8 percent. IP platform grew 1.2 percent. SDM revenues almost doubled year-on-year.
IP platforms rose by low single-digits, driven by IMS voice over LTE and customer experience, which is highlight by a revenue increase of plus 13 percent over the first nine months of the year.
WDM revenue growth accelerated to 10 percent driven by Americas and Asia-Pacific. The 1830 platform is now representing 38 percent of terrestrial current sales compared to 34 percent in the first half and 24 percent in Q3 2012.
Submarine business grew plus 4 percent.
Fixed access grew close to 6 percent with strong growth in copper driven by Americas and EMEA and fiber also witnessing good traction in the Americas. Copper and fiber solutions grew more than 10 percent.
Managed services, in line with its Shift Plan strategy, decreased revenues by 25 percent. Alcatel-Lucent completed the restructuring of managed service business by addressing all of the 15 identified contracts. This has a negative impact on the topline but has improved its profitability.
Future
Alcatel-Lucent expects its business in the fourth quarter of the year to be driven by a strong seasonal activity, and to exceed the top end of the Euro 250-300 million in fixed costs savings for the full year announced by the Shift Plan.
Michael Soper, Networking & Mobility Analyst at TBR said despite its more focused portfolio, which accelerates the shift away from legacy technologies, Alcatel-Lucent’s core segments should be able to carry the company to revenue growth in 2014.
Wireless Access scored key TD-LTE wins with Sprint, China Mobile and China Telecom, and has opportunities in LTE overlay in Europe. Core Networking is gaining traction in next-generation technology, with even the optical-heavy IP Transport segment scoring roughly flat revenue growth year-to-year.
