Alcatel posts Q2 2011 results

Alcatel Lucent has posted a revenue of Euro 3.903 billion during the second quarter 2011. It has reported net profit of Euro 43 million and the operating cash flow is Euro 18 million. Second quarter revenue increased 2.4% year-over-year and increased 4.4% sequentially to Euro 3.903 billion, said a release.

After a year-over-year growth of 22% in the first quarter 2011, Networks continued to see a strong double digit year-over-year increase in revenue this quarter with all divisions on growth path. IP revenues growth accelerated and recorded 35% year-over-year progression while optics division maintained a healthy momentum with an increase close to 6%. In access, 3G & 4G technologies drove the strong growth of the wireless division and in wireline, IPDSLAM and PON technologies more than offset the decline of legacy products.

Applications revenues posted a mid single digit year-over-year increase with networks applications growing at a double digit rate driven by next generation product portfolio and enterprise applications fairly stable. Services revenues grew at a low single digit rate with network and system integration maintaining a strong double digit growth and managed and outsourcing Solutions significantly accelerating, said the release.

Ben Verwaayen, CEO, said, “We are on track for the year. In the second quarter, our next-generation product sales increased sharply, delivering market share gains in IP and optics, driven by the need for capacity and all-IP network transformation. From a geographic standpoint, we enjoyed significant growth in North and Latin America as well as in Asia Pacific.”

He added, “We have strengthened our focus on innovation by realigning our management team and sharpening our strategy further. We have accelerated actions on fixed costs and reduced internal complexity. Free cash flow improved by more than Euro 300 million in the first half of the year compared to the year ago period and throughout the company we are actively driving better working capital management for the remainder of the year.”