Alcatel reported Q4 revenue of EUR 3.812 billion, up 10.7% year over year (13.4% at constant exchange rate). Income from operations amounted to EUR 393 million, a 10.3% operating return on sales. Some highlights:
- Q4 gross margin was 34.4%.
- Q4 revenues for the Fixed communications division decreased by 1.6% to EUR 1.533 billion compated to the same period last year.
- Optical networks registered a significant increase due to growth in optical multi-service networks with good traction coming from new products such as metro core cross connects.
- The access business was down due to a continued softness in North America with the carriers' transition to new triple play technologies, and to some timing delays in Chinese operators' decision to deploy equipment.
- DSL volume shipments were registered at 4.8 million, bringing the cumulative total for the year to 19.6 million, a 24% increase over 2003.
- The data business registered a strong performance in the quarter with continued strength in MSWAN, driven by broadband aggregation, and with a good ramp-up in IP service routers.
- Fifteen new wins were registered during the quarter for the IP multi-service edge router solution, including significant wins in North America and China, bringing the full year cumulative total to 56 customers.
- The traditional voice switching business decline was somewhat offset by maintenance services and revenue recognition from NGN replacement business.
- Twenty new customers were added during the fourth quarter for the NGN product portfolio, bringing the cumulative total to 85 customers.
- Video solutions registered a strong quarter with revenue coming from Taiwan, Russia, and various countries in Western Europe.
- Q4 revenue for Mobile communications increased by 27.2% to EUR 1.076 billion compared to the same period last year. Continued strong growth was registered in emerging markets, with revenue coming from Russia, Brazil, Algeria, Nigeria, and Thailand.
- Q4 revenue for the Private communications division increased by 12.1% to EUR 1.236 billion compared the same period last year. The IP telephony business in Enterprise, representing one-third of the enterprise voice shipments, once again registered a strong performance in Europe. Business in Asia, in particular China, gained momentum due to high-end customer demand for a wide array of voice services. Genesys continued its strong performance, particularly in the US, moving more and more into large accounts as a result of strategic partnerships.
