Telecom Lead Europe: Alcatel-Lucent’s third quarter revenue decreased 2.8 percent year-over-year to Euro 3,599 million.
The primary reason for the marginal decline in revenue is the double-digit decline in networks sales in the third quarter.
North America sales decreased 10 percent.
Central and Latin America recorded double digit growth, driven by Brazil.
In Asia Pacific, which declined 10 percent, business in Japan and Australia partially offset low activity in China.
Driven by growth in Russia, Eastern Europe declined at a smaller pace than Western Europe, where low spending from service providers still prevail.
Alcatel-Lucent reported net loss of Euro 146 million.
Ben Verwaayen, CEO of Alcatel-Lucent, said: “Our third quarter results are reflective of the significant transformation we are undertaking both in terms of scope and timing. In addition, our revenue growth and gross margin were impacted by overall carrier spending dynamics and product mix, especially in wireless.”
In Q3 2012, revenues for the networks segment were Euro 2,187 million, down 4.3 percent.
In both the APAC and Americas regions, the company witnessed double-digit growth, driven by IP edge routers, especially in Japan, China, the US and Latin America.
Revenues for the Optics division were Euro 480 million, down 17.5 percent.
Growth in WDM portfolio was prominent in Asia-Pacific and EMEA, backed by the success of its 1830 Photonic Service Switch (PSS), which was selected in the third quarter by China Telecom as part of their nationwide broadband expansion.
Revenues for the Wireless division were Euro 837 million, a decrease of 18.9 percent from the year-ago quarter.
In Q3, LTE business showed year-over-year stability driven by continued investment in the US, despite a large LTE revenue recognition in the year-ago quarter.
Revenues in the wireline division increased 26.3 percent from their year-ago level, to Euro 389 million.
For the third quarter 2012, revenues for the S3 segment were Euro 1,155 million, an increase of 5.0 percent compared to Euro 1,100 million in the year-ago quarter.
For the third quarter of 2012, revenues in our Enterprise business were Euro 188 million, a decrease of -13.8 percent compared to Euro 218 million.