Tomahawk, WI 11/07/2013 (BasicsMedia) – Alcatel Lucent SA (ADR) (NYSE:ALU) has posted increased losses of 11 cents per ADS for the third quarter ending September 30 as compared to Zacks Consensus estimates of 8 cents. This was a slight decline considering the company for the same quarter in F2012 posted earnings of ADS 6 cents. Restructuring charges has been seen as the main cause of increased losses in the third quarter as the charges reached a high of $155 million accompanied with financial charges of $289 million. Alcatel overall results were a bit encouraging despite posting increased losses. Favorable product mix accompanied with higher trading volumes saw the company gross margin increase.

Alcatel posted revenues in the third quarter totaling $4.9 billion which is a growth of 7% on a year-over-year basis. The increased revenues in this quarter were heavily impacted by the growth in IP revenues, Wireless and Fixed Networks. North America region contributed a substantial amount into the quarter’s earnings by posting an improvement of 13.6%. Asia Pacific regions posted not so good results as earnings in this regions stumbled by 10.6%. Europe on its part posted an increase of 3% in revenue collection.

 Alcatel’s Core networking segment saw growth of 0.9% on a year on year basis but declined sequentially by 4.8% to $2.8 billion. IP routing segments reported revenues totaling $768 million an increase of 7% compared to the same quarter a year ago. The experienced growth in this sector can be attributed to the growth in the APAC and EMEA regions. The demand for LTE technologies is currently at high thus greatly influencing opportunities in the IP routing. Alcatel IP transport segment which features terrestrial and submarine optics posted revenues totaling $720 million. This was a decline of 1.8% on a year over year basis. Revenues in the IP segment declined by 3.6% to clock at $493 million despite the company reporting favorable traction across a number of platforms in the segment

 Alcatel Access division posted year over year increase in revenues of $2.6 billion with three of its sub segments reporting revenue growth. Revenues in the Wireless segment were up by 12.6% at $1.5 billion driven by the growth of investments in the US. Fixed network segment posted revenue of $717 million which was a slight increase of 0.7% compared to the same quarter a year ago. The Company Copper and Fiber based ultra-band solutions grew strongly in the third quarter. The licensing division revenues grew by 21.7% mostly driven by the company’s move to use a more offensive approach in the monetization of its patent portfolio.

Alcatel Lucent SA (ADR) (NYSE:ALU) net debt for the third quarter stood at $1.3 billion compared to a net debt of € 794 million as of June 30 2013. The increase in debt has been attributed to higher working capital expenses and the restructuring of the cash outflows. Free cash flow for the third quarter stood at -€218 million compared to -€248 the same quarter a year ago. Alcatel is planning to raise $2 billion by issuing new capital and offering high yield bonds.

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