Alcatel-Lucent posts its financial results for the second quarter of 2013

Alcatel-Lucent?s revenue increased by 1.9 per cent to ?3.61 billion in the second quarter of 2013 and its net loss stood at ?885 million.

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For the period under review, the company?s gross margin stood at 31.9 per cent. Its IP division registered a growth of 25 per cent, while revenues for the IP division increased by 20.9 per cent to ?624 million. This growth was driven by the sales of the company?s edge routers and carrier Ethernet switches across all regions, especially in the US and APAC, as well as a return to growth in EMEA.

The company?s Networks and Platforms business witnessed a growth of 8 per cent, while revenues for its Networks and Platforms business increased by 5.9 per cent to ?3.06 billion. The segment posted an operating income of ?81 million or an operating margin of 2.6 per cent.

Driven by WDM growth, Alcatel Lucent?s optics business managed to lower its losses from 15 per cent in the first quarter of 2013 to 5 per cent in the second quarter of 2013. The revenues for the Optics division declined by 7 per cent to ?422 million. Alcatel Lucent?s portfolio WDM products posted mid-single digit growth in the quarter, led by the US and APAC, growing to about 40 per cent.

For the period under review, Alcatel-Lucent gained in the 100G market as the company?s shipments represented 27 per cent of the total WDM line cards shipments in the quarter under review in comparison to 19 per cent in the first quarter of 2013.

The company?s revenues for the wireless division declined by 1.1 per cent to ?1.01 billion, but it witnessed strong growth in the long term evolution (LTE) and RFS markets, which was offset by an overall decline in the 2G/3G technologies. Alcatel Lucent?s revenues from the CDMA revenues represent 20 per cent of wireless revenues, and for the first time were surpassed by LTE revenues, as the US continues to drive growth in LTE.

For the period under review, Alcatel Lucent?s revenues for the Fixed Networks division increased by 3.3 per cent to ?468 million. Strong growth in copper, especially in the US and Europe was the key growth driver. However, the growth in the Fixed Networks Division was offset by weakness in ONT fibre products, which represented less than 30 per cent of fixed networks products.

For the second quarter of 2013, Alcatel Lucent?s revenues for the Platforms Division increased by 23 per cent to ?262 million. Demand for voice over LTE supported the growth. The company?s revenues for the Services Division increased by 22.3 per cent to ?285 million and its managed services business revenue declined by 14.7 per cent to ?215 million.