o Revenues of Euro 3,668million, up 7.0% year-on-year at constant exchange rates
o Adjusted 2 grossprofit of Euro 1,196 million, or 32.6% of revenues, up from 27.8% in Q32012
o Adjusted 2 operating income 1 of Euro 116 million, or 3.2% of revenues, up from-3.5% in Q3 2012
o Free cash-flow of Euro(218)million, up from Euro (366) million in Q3 2012
o Core networking segmentrevenues up 6% year-on-year at constant exchange rates and adjusted operatingincome of 6.1% of revenues compared to 0.2% in Q3 2012
o Access segment operatingcash-flow 4 of Euro 26 million, compared to Euro (64) million in Q32012
Progress in The Shift Plan
o Continuous successfulrepositioning of Alcatel-Lucent in IP Networking and Ultra-Broadband Access
o Strategic partnership withQualcomm in place; good traction with our Cloudband and Nuage solution
o Fixed costs savings ofEuro 84 million in Q3 2013; Euro 259 million year-to-date
o Reprofiling of Euro 1.0billion of 2014 -- 2016 debt maturities since the launch of The Shift Plan
o Decrease of restrictedcash subject to exchange control by USD 200 million
o Disposal of some non-coreassets to refocus our product portfolio
Paris-- Alcatel-Lucent (Euronext Paris and NYSE:ALU) today announced its third quarter 2013 results, reportingyear-on-year revenue increase of 7% at constant exchange rates toEuro 3,668 million, and a gross margin improvement of nearly fivepercentage points, driven mainly by a stronger contribution from IP Routing,Terrestrial optics and Ultra-Broadband Access solutions. Commercial performancewas strong, with new contracts announced in each main region, Europe, theUnited States and Asia, notably in Fixed and Mobile Access.
Alcatel-Lucent achieved Euro 84 million of fixed costs savings in theperiod, bringing year-to-date total fixed costs savings to Euro 259 million,with notably a continuous decrease in SG&A.
Both improvements contributed to a positive adjusted operating income ofEuro 116 million in the quarter. Over the first nine months of the year,adjusted operating income improved by more than Euro 360 million compared tolast year period.
Free cash flow was Euro (218) million, an improvement of Euro 148 millioncompared to the third quarter of 2012, with higher adjusted operating incomepartially offset by a negative change in working capital, reflecting mainly anincrease in inventories ahead of large network roll-outs.
Alcatel-Lucent actively managed its balance sheet in the quarter. Inaddition to continuing to reprofile its debt with the issuance of USD 500million senior notes, Alcatel-Lucent took actions to decrease the cash held inChina subject to exchange control restrictions by approximately USD 200million.