Citing persistent cautious spending in Europe and low activity in China, Alcatel-Lucent reported revenue of Euro 4.096 billion for Q4 2012, down 1.3% YoY but up 13.8% compared to the previous quarter. At constant currency exchange rates and perimeter, revenues increased 16.2% sequentially and decreased 3.9% year-over-year.
Gross margin came in at 30.4% of revenue for the quarter, compared to 34.4% in the year ago quarter and 27.9% in the third quarter 2012. Fourth quarter reported net loss (group share) came in at Euro (1.372) billion or Euro (0.60) per share, including restructuring charges of Euro (247) million and other adjustments.
For Q4, Alcatel-Lucent’s Networks posted a mid single-digit decline year-over-year, a substantially lower rate than in the first three quarters of the year.
The IP business recorded a double-digit increase and its highest revenues level ever, while Wireless stabilized after four quarters of double digit declines, driven by US service providers stronger spending.
The Optics business declined at a double digit rate, driven by muted spending in terrestrial and low point in submarine.
The Wireline business declined at a low double digit rate in the fourth quarter.
The Software, Services & Solutions (S3) segment shifted to positive territory, benefiting from Network Applications’ strong performance.
The Enterprise segment posted a mid single-digit decline.
From a geographic standpoint, also adjusted for constant currency and compared to the year ago period, North America posted a 10% growth rate. Asia Pacific posted a low double-digit decline, traction in Japan being offset by continued low activity in China. Europe declined at a low double-digit rate. Rest of world was resilient, driven by continuous traction in Brazil and by Middle East and Africa, which returned back to growth after several quarters of decline.
Ben Verwaayen, CEO Alcatel-Lucent, commented: “Our fourth quarter reflects the early progress of The Performance Program announced last July. We announced clear choices on where we would operate, how we would operate and where we would differentiate.”
“We have seen progress on all these choices, and close 2012 ahead on our cost reduction plans. We have addressed half of the previously margin-diluting Managed Services contracts, and show continued and strong growth in IP and Next Generation Wireless. We can see a clear statement of customer confidence through growth in both our order book and backlog.”
“In addition, we completed a Euro 2 billion financing which enables us to extend our near-term maturities, stabilizes our balance sheet and provides us with the flexibility to finalize The Performance Program.”
