Alcatel-Lucent today said its Q1 2015 revenue rose 9 percent to $3.67 billion or 3.24 billion euros, while registering net loss of $82 million or 72 million euros.
Alcatel-Lucent revenue from North America declined 9 percent, Europe revenues increased 5 percent, driven by strength in IP Routing, IP Transport and Fixed Access. Asia Pacific posted a 7 percent increase in revenues, reflecting strength in China, led by LTE deployments, in addition to other geographies such as Australia and India.
Break up of Alcatel-Lucent revenue
Core networking revenues dipped 3 percent to 1,450 million euros — mainly due to reinvestments made to promote future growth as well as lower contribution from IP Routing, which was impacted by a temporary softer spending environment in North America and Japan.
Alcatel-Lucent’s IP Routing revenues fell 6 percent to 583 million euros. Alcatel-Lucent was the #2 vendor in total Global IP Routing in 2014, with 21 percent share, according to Dell’Oro.
7950 XRS IP Core router registered 3 new wins in Q1, including a US cable company, for a total of 39 wins to date. Revenues from Core router product line nearly tripled.
Alcatel-Lucent IP Transport revenues grew 2 percent to 492 million euros — driven by WDM and with particular strength in the EMEA and CALA regions. Alcatel-Lucent submarine business clocked double-digit revenue increase.
Within WDM, 1830 Photonic Service Switch (PSS) platform represented 60 percent of terrestrial optical product revenues in the quarter. In Q1 2015, 100G shipments represented 47 percent of total WDM line cards shipments compared to 31 percent in Q1 2014.
IP Platforms revenues fell 6 percent to 375 million euros thanks to strength in key growth platforms such as IMS for VoLTE, Motive Network Analytics and the Motive Customer Experience Management software.
Access segment revenues fell 2 percent to 1,782 million euros, reflecting strong contribution from Fixed Access, in addition to improvements in Wireless.
China Telecom selected Alcatel-Lucent as one of its top three suppliers for rolling out LTE in 40 cities across 12 provinces in China. Wireless Access revenues rose 19 percent to 1,184 million euros as growth from LTE rollouts in China was offset by lower spending in other regions, particularly North America.
Fixed Access revenues fell 1 percent to 506 million euros. Competition for broadband access drove good performance in EMEA, APAC outside China and CALA, compensating for the impact of spending pause in North America.