Alcatel Sees Q2 Net Income Fall On Higher Sales

French telecommunications equipment manufacturer Alcatel reported on Thursday a dip in second-quarter earnings despite strong sales for its Internet systems.

Net income dropped to 180 million euros (US$226 million as of June 30, the last day of the period reported) from 196 million euros in the same period a year earlier.

Net revenue rose to 3.4 billion euros from 3.1 billion a year earlier.

Second-quarter sales were boosted in part by strong demand for the French company’s fixed-line telecommunications products, up 11.4 percent to 1.4 billion euros, compared with 1.2 billion a year earlier. Strong performers were the group’s DSL access systems and IP network systems, including its new “triple-play” integrated telephony, high-speed Internet access and TV technology.

Revenue from mobile communications systems was up slightly at 1 billion euros, from 958 million a year ago.

Second-quarter revenue from private communication systems was up 5.4 percent to 1 billion euros, compared with 981 million in the same period last year.

The company announced plans in April to acquire U.S. rival Lucent Technologies, and expects to complete the deal by the end of the year. On July 24, the European Commission approved the merger, and the U.S. Federal Trade Commission gave its stamp of approval in June. The agreement is still subject to approval by shareholders of both companies, who will vote during meetings scheduled for early September. The combined companies would have pulled in US$25 billion in revenue last year.

-John Blau, IDG News Service (Dusseldorf Bureau)

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