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Alcatel rebounds in strong growth, beats estimates

July 30
9:33 AM 2013

Alcatel-Lucent rode in strong growth and beat analysts' estimates. The struggling telecom equipment maker posted this strong growth for its key US market.

In the first quarter, the company posted an increase in sales equivalent to 1.9% to Eur3.61 billion (US$4.78 billion). This quarter was also significant as this was the first full quarter where Chief Executive Michel Combes took the helm of the company.

The strong growth was driven by demand for IP products. These IP products helped direct traffic within telecom networks. This supported Combe's decision to place them at the center of the company's strategy.

Alcatel-Lucent, which is a smaller competitor to Huawei of China and Ericsson of Sweden, lost more than US$10 billion since it was created via a merger in 2006. However, the strategy implemented by Combe delivered a rebound. However, its recovery will be dependent on whether telecom operators will be increasing their overall spending in the years to come. 

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