Telecom Lead Asia: Alcatel-Lucent has posted 0.6 percent increase in Q1 revenue to €3.22 billion.
Wireless networks, fixed networks, platforms and services contributed to the marginal growth. However, Alcatel-Lucent posted double digit decline in optics business.
Its net loss during the first quarter was €353 million and operating loss €947 million.
Alcatel-Lucent, which is trying to rebuild the telecom business under the new CEO Michel Combes, is trying to come back to profitability. The new CEO will announce new strategies in the next two months.
BUSINESS PERFORMANCE OF MAIN DIVISIONS
Networks & Platforms revenue rose 4.2 percent to €2.71 billion. The segment posted an adjusted operating loss of €107 million or an operating margin of -3.9 percent.
Revenues for the IP division were €493 million, up 6.3 percent. Revenues grew in both the Americas and APAC regions with strong progress in order book, as evidenced by recent win with Japan’s NTT Communications.
IP Core router momentum continues to build with 2 new 7950 XRS wins announced in the quarter, including Belgacom and the University of Pittsburgh Medical Center (UPMC), for a total of 8 wins and more than 20 trials to date.
Revenues for the Optics division declined 15.6 percent to €342 million. It posted declines in legacy equipment, which now represents 30 percent of optics product revenues, partially offset by growth in WDM in both Europe and APAC regions.
Its 1830 Photonic Service Switch grew as a percentage of optical revenues, reaching 36 percent in the first quarter, as sales grew at a high double-digit rate compared to the year-ago quarter. The relative share of 100G shipments has also continued to increase, from 12 percent in 2012 to 19 percent in the first quarter of 2013. Traction with our 400G Photonic Service Engine has also been confirmed, with the recent completion of successful 400G trials with Shaw Communications in Canada, France Telecom/Orange and Telefónica España.
Revenues for the wireless division rose 4.9 percent to €966 million. It posted growth in LTE and RFS, which includes cable, antenna and tower systems, that was partially offset by an overall decline in 2G/3G technologies.
Alcatel-Lucent’s LTE business reached its highest level of revenues ever, as network deployments in the US continue to drive growth. It signed new LTE contracts including Etisalat in Sri Lanka and unveiled lightRadio Metro Radio with China Mobile, which will help accelerate deployment of 4G TD-LTE technology across China.
Revenues for the fixed networks division rose 8.6 percent to €405 million, reflecting strong growth in both copper and fiber products. It expanded fiber footprint in the quarter, adding 13 new customers, as growth continued to be driven by APAC, and more specifically China .
Alcatel-Lucent says revenues for the platforms division rose 1.8 percent to €226 million. In the quarter, it saw growth from a number of activities within the Platforms division, including the Motive Customer Experience Solutions business (CxS), Advanced Communications (IMS), Subscriber Data Management and Payment & Charging businesses.
Revenues for the services division increased 33.2 percent to €293 million.
Growth in the division was led by network build and implementation (NBI) as well as integration services, both of which benefitted from network rollouts in the US.
Revenues in managed services business declined 4.2 percent to €204 million as it continues to restructure this business.
