Alcatel-Lucent Q2 revenue at Euro 3.6 bn, up 1.9%

Alcatel-Lucent has today announced its second quarter 2013 results, reporting year-over-year revenue increase of 1.9 percent to Euro 3.6 billion.

The increase in growth can be attributed to the IP division which has shown a strong growth of more than 25 percent in its IP division compared to the same period last year, at constant exchange rates.

The gross margin was 31.9 percent similar to last year and improved compared to Q1’13 as a result of higher volumes and a more favorable product mix. Fixed cost savings accelerated in the second quarter to Euro 120 million, giving confidence in the Group’s ability to meet the full-year savings target, and leading to positive adjusted operating income of Euro 46 million in the quarter.

Commenting on the Q2 results, Michel Combes, CEO, Alcatel-Lucent said, “We are at the beginning of our journey towards 2015 and cash remains a challenge. Looking ahead, our clear focus will be maintaining a strict and disciplined approach to implementing The Shift Plan across all of its industrial, operational and financial dimensions.”

Networks & Platforms grew 8 percent year-over-year with IP growing more than 25 percent, Optics reducing its year-over-year decline rate from -15 percent in the first quarter to -5% in the second quarter, driven by WDM growth, and Platforms also witnessing strong performance.

To a lower extent, we have seen some traction in our fixed networks and wireless activities, where LTE and vectoring growth were partially offset by declines in legacy technologies, as well as in services, which benefited from networks roll-outs. Focused businesses declined at a double-digit rate compared to the year-ago quarter, mainly driven by Submarine. Finally, the reduction in managed services continued, reflecting our restructuring efforts.

From a geographic standpoint, also adjusted for constant currency and compared to the year ago period, North America, up nearly 20 percent, was the key driver for the total Group growth. Asia Pacific sequentially reduced the pace of its decline between the first quarter and the second quarter, with weakness in China being partially offset by continuous good traction in Japan.

Western Europe showed encouraging trends in the quarter, resulting in nearly flat performance, while Eastern Europe declined at a double digit rate. Middle East and Africa grew 9 percent, offset by a slowdown in Central and Latin America, resulting in a 10 percent rate decline in the rest of world area.

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