The optimistic beat goes on for wireless infrastructure vendors as Alcatel Corp. and L.M. Ericsson both reported profits and significant drops in losses for the third quarter respectively.
Alcatel said it slashed its net loss to $332 million from $1.57 billion in the year-ago period. In its operating results, the vendor said it improved from $24.5 million in the second quarter to $160 million, which contrasts to a loss of $227 million in the third quarter of last year.
The company said it expects to break even in the fourth quarter.
“With year-to-date operating income already in the black, we will exceed our full-year target of a break-even operating income; similarly, we are comfortable with our objectives of a break-even fourth quarter net income (before goodwill and non-recurring charges),” said Alcatel Chairman Serge Tchuruk.
In its mobile business, Alcatel’s revenue decreased 2.3 percent to $952 million and its income on sales was $92 million compared with $111.6 in the second quarter.
“Overall mobile networks’ profitability was strong and increased sequentially while losses remained in mobile phones,” said the company in the report.
Ericsson’s results snapped its quarterly trend in which it has been described as a loss-making vendor.
It reported a net income of $129 million, adjusted after financial items. Before the items, it had $505 million in income.
“Ericsson is back to profit, which is an important milestone, but a lot still remains to be done before we reach good profitability,” said Carl-Henric Svanverg, president and chief executive officer of Ericsson.
In its mobile systems, sales increased sequentially to $3.2 billion, a 3-percent improvement. Sales of professional services business increased 8 percent sequentially to $570 million, representing 17 percent of total systems sales.
Net sales were $3.6 billion.
“We have gained a number of key contracts within the rapidly expanding markets for 3G/EDGE and MMS,” said the company.
