Alcatel-Lucent posts improved second quarter results

Alcatel-Lucent reported that second quarter revenue increased 2.4 per cent year-over-year and 4.4 per cent sequentially to €3.903 billion (US$5.56 billion). At constant currency exchange rates and perimeter, revenue increased 10.4 per cent year-over-year and increased 7.6 per cent sequentially.

Following a year-over-year growth of 22 per cent in the first quarter 2011, Networks continued to see strong double-digit year-over-year increase in revenue in the second quarter to end-June, with all divisions growing.

IP revenue growth accelerated and recorded 35 per cent year-over-year progression while optics division maintained a healthy momentum with an increase close to six per cent. In access, 3G & 4G technologies drove the strong growth of the wireless division and in wireline, IP DSLAM and PON technologies more than offset the decline of legacy products.

Adjusted operating income for the quarter came in at of €108 million, up from €28 million a year earlier. Reported net profit for the period came in at €43 million, from a loss of €45 million a year earlier. Gross margin amounted to 35.8%, down lightly from the 36.2% in Q1.

“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,” commented Ben Verwaayen, CEO of Alcatel-Lucent.

“We are reaffirming our full-year outlook to grow faster than our addressable market with an adjusted operating margin above five per cent of our 2011 sales.”