PARIS-Alcatel Corp. posted surging results in its wireless infrastructure business, news that helped send the company’s stock up slightly to $12.23 per share.
“Second-quarter results came in above expectations. Sales were higher than anticipated in all three business segments. In particular, the mobile communication business grew around 30 percent year-over-year for the second quarter in a row, with a return to double-digit profitability, confirming the strength of our product offering and regional strategy,” said Serge Tchuruk, the company’s chairman and chief executive officer. “While the fixed communication business continued to shrink as expected during the quarter, our market dynamics clearly point towards the forecasted rebound in the second half. We are also pleased by the return to growth of our private communication business, despite the weakness associated with the low cycle in space activities.”
Alcatel’s revenues jumped to $3.8 billion, and its net income improved to $237 million in the second quarter from $116 million in the same quarter a year ago.
In its mobile business, Alcatel recorded an operating margin of 12 percent on growth across all product lines. The company said it continues to see revenues in emerging markets and momentum on its Next-Generation Network-Internet Protocol Multimedia Subsystem core products.
