Networks and China drive Alcatel-Lucent Q2 revenue

Alcatel-Lucent reported a 10.4 percent increase in revenue year-over-year in second quarter of 2011 and increased 7.6 percent sequentially.


Many of the company’s segments improved performance.


Networks continued to see a strong double digit year-over-year increase in revenue this quarter with all divisions growing.


IP revenues growth accelerated and recorded 35 percent year-over-year progression while optics division maintained a healthy momentum with an increase close to 6 percent.


In access, 3G & 4G technologies drove the strong growth of the wireless division and in wireline, IPDSLAM and PON technologies more than offset the decline of legacy products.


Applications revenues posted a mid single digit year-over-year increase with Networks applications growing at a double digit rate driven by next generation product portfolio and Enterprise applications fairly stable.


Services revenues grew at a low single digit rate with Network & System Integration maintaining a strong double digit growth and Managed & Outsourcing Solutions significantly accelerating. From a geographic standpoint, also adjusted for constant currency, traction remained strong in North America with a year-over-year increase in sales of 18 percent and revenue growth in Asia Pacific significantly accelerated to reach 14 percent this quarter, especially driven by China whose revenue increased by more than 40 percent compared to the year ago quarter.


Rest of World grew at a high single digit rate driven by Central & Latin America which recorded more than 30 percent year-over-year growth. Europe remained fairly stable with a slight increase in Western Europe compensated by a decline in Eastern Europe.


We are on track for the year. In the second quarter, our next-generation product sales increased sharply, delivering market share gains in IP and optics, driven by the need for capacity and all-IP network transformation. From a geographic standpoint, we enjoyed significant growth in North and Latin America as well as in Asia Pacific,” said Ben Verwaayen, CEO, Alcatel-Lucent.


We have strengthened our focus on innovation by realigning our management team and sharpening our strategy further. We have accelerated actions on fixed costs and reduced internal complexity. Free cash flow improved by more than Euro 300 million in the first half of the year compared to the year ago period and throughout the company we are actively driving better working capital management for the remainder of the year,” Verwaayen added.


For the second quarter 2011, revenues for the Networks segment were Euro 2.475 billion, an increase of 7.4 percent compared to Euro 2.304 billion in the year-ago quarter and an increase of 2.4 percent compared to Euro 2.418 billion in the first quarter 2011.


For the second quarter 2011, revenues for the Applications segment were Euro 486 million, a decrease of 0.6 percent from Euro 489 million in the year-ago quarter and an increase of 7.8 percent compared to Euro 451 million in the first quarter 2011.

For the second quarter 2011, revenues for the Services segment were Euro 871 million, a decrease of 1.4 percent compared to Euro 883 million in the year-ago quarter and an increase of 7.7 percent compared to Euro 809 million in the first quarter 2011.

By Team
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