Alcatel-Lucent reported Q1 2013 revenues of Euro 3,226 million, up 0.6% year-over-year but down -21.2% sequentially. At constant currency exchange rates and perimeter, revenues increased 1.8% year-over-year and decreased -19.9% sequentially. There was a first quarter reported net loss (group share) of Euro (353) million or Euro (0.16) per share, including restructuring charges of Euro (122) million and Euro (152) million of financial loss.
“Alcatel-Lucent’s first quarter results reflect both encouraging trends in the marketplace and good progress with The Performance Program, for which discipline on execution remains the priority in 2013. Free cash-flow remains a challenge. Strong focus will be placed on working capital management to reverse some of the negative impact incurred this quarter. We are actively reviewing the Group’s businesses and operating model to design the conditions for value creation in the future. I am looking forward to sharing the outcome in early Summer,” stated Michel Combes, CEO Alcatel-Lucent.
Some highlights of the report:
- Networks & Platforms grew 6% year-over-year with high single digit growth in IP and good traction in Wireless, Fixed networks, Platforms and Services, all partially offset by a double-digit decline in Optics.
- Revenues for the IP division were Euro 493 million, increasing 6.3% from the year ago quarter and 9.3% at constant currency.
- Revenues for the Optics division were Euro 342 million, a decrease of 15.6% from the year-ago quarter. Revenues for the Wireless division were Euro 966 million, an increase of 4.9% from the year-ago quarter.
- The growth in LTE and RFS, which includes cable, antenna and tower systems, was partially offset by an overall decline in 2G/3G technologies.
- Focused Businesses declined at a double-digit rate compared to the year ago quarter, with Enterprise at a mid-single digit rate and Submarine at a faster pace.
- A slowdown in Managed Services continued, reflecting restructuring efforts.
- From a geographic standpoint, also adjusted for constant currency and compared to the year ago period, North America reached historical highs as a percentage of total revenues (48%), resulting from strong growth in the region.
- Japan showed good traction and China stabilized. The Asia Pacific region declined at a low single digit rate.
- Cautious spending persisted in Europe, which declined at a 10% rate.
- Rest of world declined at 10%, where growth in Brazil was offset by weakness in the rest of Central and Latin America and Middle East and Africa.