Alcatel-Lucent posted Q3 2013 revenue of Euro 3,668 million, up 7.0% year-on-year at constant exchange rates, and a gross profit of Euro 1,196 million, or 32.6% of revenues, up from 27.8% in Q3 2012. There was a net loss of (group share) of Euro (200) million for the period, or Euro (0.09) per share. This includes restructuring charges of Euro (117) million and other special charges.
"We are seeing the first positive signs of our new operating model in our day-to-day business and are encouraged by the substantial progress in the Shift Plan key metrics. Going forward, we remain fully focused on execution to leverage the momentum we are building," stated Michel Combes, CEO of Alcatel-Lucent.
Some highlights for the period:
- The Core Networking segment grew 6.0% year-on-year, driven by a strong performance from IP Routing, and reflecting an improvement in IP Transport, mainly formed by terrestrial and submarine optics, which stabilized after quarters of revenue decline.
- Revenues for the IP Routing division were Euro 580 million, increasing 7.0% from the year-ago quarter and 14.6% at constant currency, driven by strength in the APAC and EMEA regions, where the latter grew nearly 50% compared to the year-ago quarter.
- There were four new customers in the quarter for the 7950 XRS core router.
- Within IP Transport, sales of WDM witnessed a 10% growth in the quarter at constant rate, led by both the Americas and APAC regions. The 1830 Photonic Service Switch represented 38% of optical revenues in the third quarter, and is now deployed with more than 360 customers, including more than 150 100G customers.
- 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.
- Revenues for the Wireless division were Euro 1,196 million, an increase of 12.6% from the year-ago quarter where strong growth in LTE was driven by ongoing investments in the US, in addition to positive trends in both the APAC and EMEA regions.
- Revenues for the Fixed Networks division were Euro 541 million, an increase of 0.7% from the year-ago quarter on a reported basis and 5.8% at constant currency exchange rate. The VDSL2 vectoring products are now being used by 17 customers, including 4 new contracts in the third quarter.
- North America posted its second consecutive quarter of nearly 20% year-on-year growth, continuing to be the key driver for the Group.
- China was stable in terms of revenues, but the rest of the Asia Pacific region declined at a low single digit rate.
- Encouraging trends continued in Western Europe, growing more than 5%, while Eastern Europe reduced its pace of decline.
- The recovery in the Middle East and Africa accelerated, witnessing growth in the mid-teens, which was offset by a slowdown in Central and Latin America, resulting in a -9% rate of decline in the Rest of World area.
- At September 30, 2013, the Group had net debt of Euro (1,004) million, versus Euro (794) million at June 30, 2013.