Telecom Lead Europe: Alcatel-Lucent’s first quarter
revenue that is down 12.3 percent to 3.2 billion euro did not excite investors
and analysts. Thanks to exiting from Genesys business, the gear maker reported
a net profit was 398 million euro in Q1 2012.
Telecom Lead is presenting business-wise revenue details
of Alcatel-Lucent in Q1 2012.
NETWORKS
In Q1 2012, revenues for the Networks segment were euro
1.98 billion, a decrease of 18.1 percent compared to Euro 2.41 billion in
the year-ago quarter.
Revenues for the IP division were euro 431 million, a
23.5 percent increase from the year-ago quarter.
Alcatel-Lucent saw strength in both the APAC and Americas
regions, both growing more than 30 percent year-over-year, as service providers
continued to transform their networks to all-IP, with investments in key areas
such as mobile backhaul and 100 Gigabit Ethernet.
In Q1 2012, Alcatel-Lucent was chosen by Norway’s Tampnet
to enhance its communications network serving oil and gas exploration and
production facilities using our IP/MPLS portfolio.
Alcatel-Lucent was selected by Belgacom and Vermont
Telephone Company (VTel) to provide service routers as part of larger projects
with each customer.
More than 25 customers have deployed 100 Gigabit Ethernet
on their service routers to date. The company began shipping our FP3 chips
within 100G cards in the first quarter of 2012.
Revenues for the Optics division were Euro 489 million,a
decrease of 25.2 percent from the year-ago quarter, driven by double-digit
declines in both our terrestrial and submarine businesses.
Its terrestrial optics business experienced
year-over-year declines across all regions, with weakness across all
technologies, while our submarine business saw weakness after a full year of
growth.
More than 60 customers are currently deploying 100G
optics.
Alcatel-Lucent introduced the Photonic Service Engine
(PSE) chip for fiber optic networks that provides a fourfold increase in speed
and double the capacity of fiber networks while improving performance and
reducing space and power requirements. This will accelerate 100G market
adoption and help lay the foundation for migration to 400G networks in the
future.
In the submarine business, Digicel, selected
Alcatel-Lucent, along with Columbus Networks to provide Haiti with broadband
services through undersea cable networks, which have not been fully restored
since the earthquake struck this area two years ago.
Revenues for the Wireless division were euro 788 million,
a decrease of 29.5 percent from the year-ago quarter.
GSM was weak in China due to central bidding phasing,
while CDMA stabilized from Q4 levels. These trends were partially offset by
double-digit growth in W-CDMA and LTE revenues which more than doubled compared
to the year-ago quarter, and grew more than 50 percent sequentially.
In the LTE market, America Movil selected Alcatel-Lucent
to provide LTE/4G network infrastructure in Latin America. It will also deploy
a pilot 4G network in Marseille. The total number of LTE contracts is 20.
Alcatel-Lucent is assisting Corporacion Nacional de
Telecomunicaciones (CNT) to deploy a complete end-to-end 3G W-CDMA network in
Ecuador.
Revenues in the Wireline division declined 8.7 percent
from their year-ago level, to euro 282 million.
In the first quarter, Alcatel-Lucent signed more than 15
new or extension broadband access contracts, including being selected as key
supplier for the deployment of Telmex’s broadband access network based on VDSL2
and GPON technologies in Mexico. Alcatel-Lucent will assist P&T
Luxembourg to deploy a fiber-based broadband access network using GPON
technology to advance the current availability and quality of broadband
services.
Sales of our next-generation Networks products increased
23 percent from the year-ago quarter, reaching Euro 1,106 million in the first
quarter 2012.
Software, Services and Solutions
For the first quarter 2012, revenues for the S3 segment
were Euro 969 million, a decrease of 0.6 percent compared to Euro 975
million in the year-ago quarter and a decrease of 26.3 percent compared to Euro
1,315 million in the fourth quarter 2011.
Revenues in Services business were Euro 870 million, flat
compared to the year-ago quarter. Growth continued in Managed Services
business, with revenues increasing at a double-digit rate with strength across
all geographies, particularly CALA, Western Europe and India, compared to the
year-ago quarter.
Professional Services business, formerly NSI, grew at a
mid-single digit rate in the first-quarter, driven by growth in telco segment,
especially large LTE rollouts, and Strategic Industries in US.
Network Applications revenues declined 6.6 percent from
their year-ago level, to Euro 99 million in the first quarter.
CxT portfolio now has over 90 million fixed lines and 70
million devices under management around the world and is seen as a key growth
area for the business, particularly driven by smartphone proliferation.
ENTERPRISE
For the first quarter of 2012, revenues in our Enterprise
business were euro 178 million, a decrease of 8.7 percent compared to Euro
195million in the year-ago quarter and a decrease of 17.2 percent compared to
euro 215 million in the fourth quarter 2011.
Revenues from Enterprise business decreased 8.7 percent
in the first quarter, primarily due to declines in voice telephony driven by a
difficult economic environment in Europe.
Data networking business saw slight declines in the first
quarter due to slowdowns in certain services, while revenues related to
Ethernet port shipments grew at a double-digit rate, highlighting the success
of our renewed portfolio including the OmniSwitch 10k and OmniSwitch 6900.
During the quarter, Alcatel-Lucent introduced the
OmniSwitch 6450 to expand our Converged Network Solution which increases the
access capacity of enterprise networks, while introducing new capabilities to
allow for more effective management of network resources.
Alcatel-Lucent also announced OpenTouch Conversation
(OTC) software that will allow enterprise employees to easily shift between
different types of business communications services, like instant messaging,
data sharing, voice calls and video collaboration, on personal devices such as
the iPad, without interruption.
