Alcatel-Lucent ME sales down 8%

Networking equipment vendor latest to see regional sales dampened by Arab unrest
Ben Verwaayen admitted Q1 had been
Ben Verwaayen admitted Q1 had been

Share

Alcatel-Lucent, a major provider of networking hardware and services to telcos and enterprises, saw its revenues in the Middle East slump on the back of political turmoil in the region.

In the Paris-based vendor's first quarter of its fiscal year 2011, sales derived from the Middle East and North Africa fell 8%, Alcatel-Lucent said.

"Of course, this has been a difficult quarter, given the turmoil in that particular part of the world," Alcatel-Lucent CEO Ben Verwaayen told investment analysts during a conference call on Friday.

"I have to give a great deal of respect for our local team, not only how they have handled the human aspect of it and the customer aspect of it, but if you look to the numbers, it's minus 8%, which is given the circumstance, a pretty good performance."

Like others in the network vendor ecosystem, Alcatel-Lucent has in place large deals with customers in territories impacted by Arab unrest.

In 2008, the company signed an agreement with Libyan ISP LTT to supply the North African nation with its first commercial WiMAX network. A year later, Alcatel-Lucent signed a multimillion dollar contract to provide Libyan government-owned telecoms carrier LPTIC with optical fibre infrastructure.

Alcatel-Lucent unveils OpenTouch communications suiteMTN Nigeria selects Alcatel for network upgrade Motive solution to monitor STC's fibre network.

Across all geographies, the picture was a significantly better one, with revenues increasing 15.2% year-over-year to 3.74 billion euros ($5.39 billion). Sequentially, sales slipped 23.1%.

During the three-month period ending March 31 2011, Alcatel-Lucent recorded net income of 32 million euros ($46.1 million), compared to a loss of 473 million euros ($681.1 million) in the year ago quarter.

In terms of market segmentation, Alcatel-Lucent's networking division put in a strong performance. Sales here grew 25.4% to 2.42 billion euros ($3.48 billion), which CEO Verwaayen attributed to robust global demand for IP, optics and wireless. "So what you see is a very strong demand in IP. Very strong demand in optical. Wireless is booming," he said.

Alcatel-Lucent's applications business benefited from an 8.4% increase in revenues to 451 million euros ($649.47 million), while services rose 4.8% to 809 million euros ($1.17 billion).

 

REGISTER NOW | Webinar Event | Security you can bank on – Safeguarding the Middle East’s financial sector

Presented in partnership with security and network specialist Cybereason, the second in the three part webinar series will bring together a panel of experts to discuss how banks and financial institutions are evolving their service offering while simultaneously staying one step ahead of the cyber criminals who seek to bring their operations crashing to the ground.

Editor's Choice

Emerson expands analytics platform for industrial enterprise-level wireless infrastructure management
Plantweb Insight platform adds two new Pervasive Sensing applications that manage wireless networks more efficiently with a singular interface to the enterprise
Digitalisation seen as a competitive advantage by Middle East private businesses
Nearly 80 per cent of private business leaders acknowledge that digitalisation can impact business sustainability
Etisalat introduces Multi-Access Edge Computing architecture delivering best-in-class video streaming performance for 5G networks
MEC architecture achieves performance gains of as much as 90% in video streaming, validating how ultra-low-latency applications will be delivered over 4G and 5G networks

Most popular

Don't Miss a Story