Alcatel Optronics Posts Record 3rd Quarter with Sales up 173%
Source: Alcatel
Paris. Alcatel Optronics (Paris: CGO.PA; NASDAQ: ALAO) today reported 3rd quarter sales of Euro 124.9 million, up 173% over Euro 45.7 million in 3rd quarter 99. Income from operations more than tripled to Euro 26.6 million compared with Euro 7.5 million in 1999.
"We have registered an outstanding performance", said Jean-Christophe Giroux, CEO of Alcatel Optronics. "Revenue growth has been very strong and we are seeing solid demand in all product lines, especially with our innovative subsystem solutions now representing 50% of our product mix. In addition, new orders from existing external customers during the third quarter demonstrated their growing demand for the full line of the Alcatel Optronics product family."
"Since its closing on August 1, Innovative Fibers has been successfully integrated and production of their leading Fiber Bragg Grating technology is quickly ramping up. We have aggressively launched our capacity expansion plans across the board. Our goal of diversifying our client base is well under way and we are clearly in line to meet our full year target of external sales representing 30% of turnover, compared with 18% in 1999."
"We are very confident about our business and customer demand across all product lines. Our financial targets for 2000 are firmly on track. We expect sales to more than double and income from operations to more than triple over 1999. Going forward, we believe we can continue to grow sales faster than the market, and that margins will continue to improve."
Third Quarter 2000 results (Unaudited)
Third quarter sales increased by 173% over third quarter 99 to Euro 124.9 million. Income from operations increased 255% to Euro 26.6 million and included R&D expenses of Euro 9.3 million, representing 7.4% of sales. Net income was registered at minus Euro 4.8 million and included a charge of Euro 22.1 million related to amortization of goodwill and R&D in process resulting from the acquisition of Innovative Fibers, which was consolidated as of August 1, 2000.
About Alcatel Alcatel builds next generation networks, delivering integrated end-to-end voice and data networking solutions to established and new carriers, as well as enterprises and consumers worldwide. With 120,000 employees and sales of EURO 23 billion in 1999, Alcatel operates in more than 130 countries. For more information, visit Alcatel on the Internet: http://www.alcatel.com
About Alcatel Optronics Alcatel s Optronics Division designs, manufactures and sells high performance optical components, modules and integrated sub-systems for use in terrestrial and submarine optical telecommunications networks. Operating state-of-the-art manufacturing plants in North America and Europe, Alcatel s Optronics Division is a leading supplier of DWDM lasers, photodetectors, optical amplifiers, high-speed interface modules and key passive devices such as arrayed waveguide multiplexers and Fiber Bragg Grating filters. It also has experience in integrating active and passive components and modules into sub-systems. The Optronics Division is part of Alcatel s Optics Group which comprises Alcatel s world-leading activities in optical networking, including submarine and terrestrial transmission systems, fiber optics and optical components.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements relating to the Company s expectations for sales and profitability for 2000 and 2001. Such expectations assume that (i) current market trends in sales will not change and operating profits will continue to improve, (ii) the Company will benefit from growth in the telecommunications market, (iii) the Company s sales volume will increase in several product markets, and (iv) customer spending patterns will not change. Unfavorable changes in the above or other factors listed under "Risk Factors" from time to time in Alcatel s SEC reports, including the Prospectus relating to the offering of Alcatel s Class O shares dated October 20, 2000 could materially affect Alcatel Optronics.
Alcatel Press Contact and Investor relations :
Charlotte Laurent-Ottomane Tel : +33 (0)1 40 76 13 30 charlotte.laurent.ottomane@alcatel.fr
E-mail: charlotte.laurent.ottomane@alcatel.fr
Web site: http://www.alcatel.com
