Alcatel-Lucent revenue increased 1.9 percent to €3.61 billion in Q2 of 2013.
Sequential increase in revenue was significant at 12 percent.
Alcatel-Lucent reported net loss of €885 million in the second quarter of 2013.
The company, which recently made changes to strategy and adopted– The Shift Plan — said it posted more than 25 percent growth in its IP division.
The gross margin was 31.9 percent, similar to last year.
The company hopes that future will be bright for the telecom equipment business, especially after the restructuring. Its new strategies focus on reducing debt and getting out of non-viable businesses.
“We are at the beginning of our journey towards 2015 and cash remains a challenge. Looking ahead, our clear focus will be maintaining a strict and disciplined approach to implementing The Shift Plan across all of its industrial, operational and financial dimensions,” said Michel Combes, CEO Alcatel-Lucent.
Networks & Platforms rose 8 percent. IP grew more than 25 percent, Optics reduced its decline rate from -15 percent in the first quarter to -5 percent in the second quarter, driven by WDM growth.
Alcatel-Lucent revenues for Networks & Platforms rose 5.9 percent to €3.06 billion. The segment posted an operating income of €81 million or an operating margin of 2.6 percent.
Revenues for the IP division increased 20.9 percent to €624 million. The growth was driven by strength in its edge routers and carrier Ethernet switches across all regions, especially in the US and APAC, as well as a return to growth in EMEA.
Alcatel-Lucent said revenues for the Optics division decreased 7 percent to €422 million.
Its WDM portfolio posted mid-single digit growth in the quarter, led by the US and APAC, as well as strong progress in order book, growing almost 40 percent.
Alcatel-Lucent gained in the 100G market as shipments now represent 27 percent of total WDM line cards shipments in Q2 2013, compared to 19 percent in Q1 2013.
Its revenues for the Wireless division dipped 1.1 percent to €1.01 billion. There was strong growth in LTE and RFS, which was offset by an overall decline in 2G/3G technologies.
Its CDMA revenues represent 20 percent of wireless revenues, and for the first time were surpassed by LTE revenues, as the US continues to drive growth in LTE.
Revenues for the Fixed Networks division rose 3.3 percent to €468 million. Strong growth in copper, especially in the US and Europe was the growth driver. This was offset by weakness in ONT fiber products, representing now less than 30 percent of fixed networks products.
Revenues for the Platforms division rose 23 percent to €262 million. Demand for Voice over LTE (VoLTE) supported the growth.
Alcatel-Lucent’s revenues for the Services division rose 22.3 percent to €285 million.
Alcatel-Lucent’s Managed Services business revenue decreased 14.7 percent to €215 million.
picture source: bloomberg.com