Alcatel-Lucent's Q3 IP revenues jump 7 percent to $789.2M

Alcatel-Lucent's (NYSE: ALU) IP routing division continues to be the shining star in the company's portfolio, rising 7 percent year-over-year to $789.2 million.

IP division growth is being driven by sales in both the Asia Pacific and EMEA regions. Asia Pacific, in particular, grew almost 50 percent year-over-year.

In addition to IP routing, Alcatel-Lucent saw some gains in both IP transport and fixed access.

While overall IP Transport division revenues declined 1.8 percent to $739 million, the WDM portfolio grew 10 percent due to deployments by carriers in both the Americas and Asia Pacific regions. One of the key drivers was the 1830 Photonic Service Switch, which it said "represented 38 percent of optical revenues in the third quarter, and is now deployed with more than 360 customers, including more than 150 100G customers."

It added that shipments of 100G now represent 30 percent of total WDM line cards shipments in Q3 2013 vs. 27 percent in Q2 20113.

Driven by growth in both copper and fiber-based broadband solutions in its North America and EMEA region, Alcatel-Lucent's Fixed Networks division revenues were $735 million, up 0.7 percent year-over-year. The vendor's VDSL2 vectoring products are now being used by 17 customers, including 4 new contracts in Q3 2013, while its vectoring products are are being trialed by 55 service providers. In addition, the vendor has 14 new FTTH contracts.

To appeal to cable operators expanding their business service footprint, Alcatel-Lucent introduced an Ethernet Passive Optical Networking (EPON) fiber solution. Already, the solution has already been selected by two U.S. cable MSOs, including Bright House Networks.

From an overall financial perspective, it narrowed its losses to $273 million in the quarter, down from a $431 million loss it had in the year-ago period. Net sales increased 1.9 percent to $5 billion and would have increased 7 percent year-over-year at constant currency exchange rates, the company said.

Shares of Alcatel-Lucent were listed at $3.78, up 48 cents, or 14.48 percent, in Thursday morning trading on the NYSE.

For more:
- see the earnings release

Earnings summary: Wireline telecom earnings in the third quarter of 2013

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