Alcatel posts 42% fall in profit

Alcatel, which is acquiring Lucent, posted a less than impressive quarter with a 42 percent fall in net profit because of "intensifying competition, pricing pressure in the mobile-phone equipment market and year-earlier gains," according to The Wall Street Journal. Alcatel is currently acquiring Lucent in an $11 billion, all-stock deal announced in April. The combined company is expected to save $1.7 billion in the next three years, which will come from cutting 10 percent of its 88,000 jobs.

During the Q3 conference call, Alcatel highlighted a few wins it made during the quarter in the IPTV space:

  • "A significant win for us, during the quarter also was the win in GPON that we had with Verizon," said Mike Quigley, president and COO.
  • "IP service routing, the second area in fixed, once again the revenues almost doubled year-over-year. Just a reminder, it's not only on IPTV, in fact 60 percent of the revenue we have in IP routing comes from residential or consumer based services, and 40 percent from enterprise," Quigley said. 
  • On whether it would continue to support other middleware offerings, besides Microsoft's despite recently becoming more cozy with the big company: "We are not going to let customers down. We are going to continue to support what they want to do and that's the philosophy we will take as we also move forward," Quigley said.

For more on Alcatel's Q3:
- see this article from the WSJ (sub. req.)

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