Alcatel-Lucent, S.A.(ALU) reported a net loss from continuing operations of $0.20 (€ 0.16) per ADS in the first quarter of 2013, worse than the Zacks Consensus Estimate of a loss of $0.10. In the prior-year quarter, Alcatel had reported earnings per ADS of $0.13. Earnings in the reported quarter include an after-tax impact from purchase price allocation entries.
However, excluding the negative impact of the purchase price allocation entries, loss per ADS came in at $0.19 compared with earnings of $0.15 per ADS in the prior-year quarter.
Total Revenue
In the first quarter of 2012, Alcatel posted revenues of €3.2 billion ($4.1 billion), up 0.6% year over year but down 21.2% sequentially. The decline was attributable to stagnant orders. Further, on a geographical basis, the company witnessed declines in Europe that were partially offset by growth in Asia Pacific.
Geographically, North America posted a 15.1% growth year over year. However, Alcatel witnessed mixed trends in Asia Pacific, which resulted in a low single-digit decline of 5.8% year over year. Further, strong performance in Japan and financial stability in China were partially offset by continued low volume of activity in the Asia pacific region. Further, cautious spending in Europe resulted in a decline of 10.1% in revenues from the region. However, revenues from the Rest of World were down 13.3% as continued traction in Brazil was more than offset by poor results in Central and Latin America, the Middle East and Africa.
Segmental Performance
Revenues for the Network and Platforms segment increased 4.2% to €2.7 billion ($3.6 billion) but decreased 21.2% sequentially. Most of the sub-segments reported a year-over-year increase in revenues.
Revenues in the IP division increased 6.3% year over year, driven by continuous progression in the American region and breakthroughs in Japan’s NTT, which resulted in revenue growth in the Asia Pacific region in the quarter.
The Wireless division reported a 4.9% increase from the year-ago level. In 2012, the Wireline business reported its first full year of growth since the merger of Alcatel and Lucent, primarily driven by fiber roll-outs for nationwide broadband initiatives. In third quarter also the growth drivers continued to improve the company’s results. The company signed a number of LTE contracts in the last quarter. However, growth in LTE and RFS, which includes cable, antenna and tower systems, was partially offset by an overall decline in 2G/3G technologies.
Revenue in the Fixed Networks grew 8.6% year over year. However, the Optics division reported a decline of 15.6% year over year. This decline was partially offset by improved results from the WDM (Wavelength-Division Multiplexing) technology segment. Revenues from the Platforms division experienced a marginal increase of 8.6% year over year.