The third quarter revenue performance of Alcatel-Lucent was not impressive as compared with Ericsson and Nokia Networks.
Ericsson improved its Q3 revenue by 9 percent, while Nokia Networks posted 13 percent increase in revenue €EUR 2.9 billion fuelled by LTE.
ALSO READ: Ericsson Q3 revenue up 9%, operating income dips 7%
On the other hand, Alcatel-Lucent Q3 revenue decreased 5.9 percent to $4.09 billion.
Alcatel-Lucent Q3 revenue drops 5.9% to $4 bn, net loss at $23 mn
Michel Combes, CEO of Alcatel-Lucent, said: “We opened the second chapter of The Shift Plan, sharpening our focus on applying innovation to unlock growth in order to address our strategic ambitions within and outside of the telecoms sector.”
The company said most of its main divisions performed badly.
Telecom network vendor Alcatel-Lucent said its Core Networking segment revenues fell 3.9 percent to €1,443 million.
IP Routing revenues rose 2.2 percent to €594 million, with notable growth in Europe, APAC (outside of China) and CALA. Alcatel-Lucent observed solid order intake, reflecting encouraging trends in both the Americas and EMEA.
Alcatel-Lucent 7950 XRS IP Core router registered 4 new wins in Q3 for a total of 32 wins to date, including recent announcements of US operator Century Link, China Mobile, China Telecom and China Unicom. These come in addition to announcing Oi Brazil and Turk Telekom as customers and the deployment of XRS-40 at DE-CIX.
Nuage Networks added 4 new wins in the quarter, totaling 12 customers with traction across extra-large enterprises, cloud service providers and service providers.
IP Transport revenues dipped 3.3 percent to €527 million. Alcatel-Lucent said its terrestrial optics increased at a high single-digit rate as its WDM portfolio continued to drive growth in EMEA and APAC. Its submarine business witnessed stronger backlog, but was impacted by delays in certain contract milestones.
Within WDM, its 1830 Photonic Service Switch (PSS) represented 50 percent of terrestrial optical product revenues.
Year-to-date, 100G shipments represented 34 percent of total WDM line cards shipments compared to 26 percent in the same period of 2013. 100G platform was recently selected by Telefonica Spain, MTN Nigeria and Ucom in Armenia.
IP Platforms revenues decreased 14.2 percent to €322 million, reflecting its strategy to rationalize the product portfolio and leverage on growth engines such as IMS for VoLTE and Motive Customer Experience portfolio.
Alcatel-Lucent said Access segment revenues decreased 7.5 percent to €1,807 million.
Wireless Access revenues fell 1.5 percent to €1,176 million, as LTE 4G rollouts continued at a more moderate pace in the third quarter.
LTE overlay wins in the third quarter include Globe Telecom in the Philippines as well as both nTelos and Pioneer Cellular in the US.
Alcatel-Lucent signed 3 new small cell customers in the quarter, bringing total to 74 customers.
Fixed Access revenues declined 4.6 percent to €518 million as demand for vectoring and fiber was not enough to offset the pause in specific customer rollouts.
Managed Services revenues decreased 50 percent to €97 million, reflecting its strategy to terminate or restructure loss-making contracts.
Baburajan K
[email protected]
