Alcatel-Lucent reported Q4 2013 revenues of Euro 3,930 million, flat year-on-year at constant exchange rate, along with a significant improvement in operating profitability and segment operating cash flow in Q4 and for 2013 as a whole. The company cited a drop in its fixed costs, renegotiated managed services contracts and portfolio rationalization as contributing factors to the improved performance.
Revenues for the Core Networking and Access segments were up 0.4% year-on-year at constant exchange rates. Sequentially, at constant exchange rates, Group revenues increased by 8.8% and by 8.9% for Core Networking and Access segments, reflecting notably a strong performance in IP Platforms, IP Transport and Wireless.
Alcatel-Lucent also announced a binding offer from China Huaxin, a technology investment company, for the acquisition of Alcatel-Lucent Enterprise for Euro 268 million on an enterprise value basis (cash-free / debt-free). The deal values Alcatel-Lucent Enterprise at an estimated Euro 237 million on an equity value basis, for 100%. Alcatel-Lucent will retain a minority stake of 15%.
A few highlights:
- Revenues for the IP Routing division were Euro 555 million in Q4 2013, down 5.2% from a record Q4 2012, and down 2.6% sequentially, at constant exchange rates.
- Revenues for the IP Transport division, which includes terrestrial and submarine optics, reached Euro 618 million in Q4 2013, up 0.3% year-on-year and 14.2% sequentially at constant exchange rates.
- Revenues for the IP Platforms division declined 5.8% at constant exchange rates to Euro 543 million in Q4 2013, off a high base in Q4 2012.
- WDM revenues are stabilizing and 100G adoption rate is accelerating
- ALU scored a key win for its 1830 Photonic Service Switch with Verizon and with SFR (France)
- ALU is now shipping more vectoring than non-vectoring VDSL lines
- ALU says 125+ million subscribers now supported on its IMS platform
- ALU now has 45 million LTE devices under management
- ALU had 65 Small Cell contracts at the end of 2013
- ALU’s LTE revenues grew 70%+ in 2013
- In Managed Services, ALU restructured 15 contracts last year, leading to near break-even financial performance in Q4.
http://www.alcatel-lucent.com
