Alcatel-Lucent reported Q2 revenues or EUR 4.326 billion, up 13% sequentially and 0.5% year-over year at a constant EUR/USD exchange rate. The adjusted gross profit was EUR 1,447 million, 33.4% of sales, including a positive impact of EU 34 million from a litigation settlement, compared to an adjusted pro-forma gross profit of EUR 1,711 million in the year-ago quarter. Adjusted operating income (loss) was EUR (19) million, (0.4)% of sales, compared with an adjusted pro-forma operating income (loss) of EUR 252 million in the year-ago quarter.
The gross margin was lower than expected, as it was negatively impacted by continued significant investments in key markets, an unfavorable product and geographic mix as well as some impact from product related transition costs as customers migrate their networks. However, the company forecast sequential revenue growth as the year progresses, which implies a strong ramp-up in the second half 2007.
Some highlights:
- Revenue for the carrier business segment was Euro 3,104 million compared to Euro 3,367 million in the year-ago quarter, a 5% decline at a constant Euro/USD exchange rate, or an 8% decline at current rate.
- Revenue for the wireline business group was Euro 1,505 million compared to Euro 1,460 million in the year-ago quarter, a 7% increase at a constant Euro/USD exchange rate, or a 3% increase at current rate.
- Revenue for the wireless business group was Euro 1,237 million compared to Euro 1,396 million in the year-ago quarter, a 8% decline at a constant Euro/USD exchange rate, or a 11% decline at current rate.
- Revenue for the convergence business group was Euro 362 million compared to Euro 511 million in the year-ago quarter, a 27% decline at a constant Euro/USD exchange rate, or a 29% decline at current rate.
- Revenue for the enterprise business segment was Euro 376 million compared to Euro 368 million in the year-ago quarter, a 5% increase at a constant Euro/USD exchange rate, or a 2% increase at current rate.
- Revenue for the services business segment was Euro 750 million compared to Euro 699 million in the year-ago quarter, a 11% increase at a constant Euro/USD exchange rate, or a 7% increase at current rate.
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