News Article
Alcatel-Lucent and Powerwave benefit from smartphone revolution
Although Alcatel-Lucent is still posting net losses, it has attributed improved results to a 40 % jump in North American Sales. Powerwaves' total Americas revenue was $54.3 million or approximately 40 % of revenue.
The communications equipment industry has shown significant growth this year. As corporations become more mobile, connection solutions allowing employees to connect directly with the corporate server are growing in appeal.
Businesses are looking for faster options and equipment makers that offer these options have the opportunity to bolster their top lines. With such growth potential throughout the industry, companies are fighting harder than ever to secure their respective niches. The Bedford Report examines investing opportunities in the Communications Equipment Industry and provides research reports on Alcatel-Lucent and Powerwave Technologies.
Despite high unemployment and mediocre consumer confidence, North American smartphone and tablet sales continue to skyrocket. At the moment there is massive demand for mobile internet and telecom customers are typically looking for smooth transitions to 3G or 4G networks.
When telecom equipment-maker Alcatel-Lucent reported first quarter operating results, Chief Executive Ben Verwaaye said he is "optimistic that 3G and 4G will be a driving force for a long time to come." In the most recent quarter, Alcatel posted a net loss of €10 million ($14.6 million) compared to a loss of €515 million recorded in the year-earlier quarter. The company attributed the improved results to a 40 % jump in North American Sales.
In the first quarter of 2011, Powerwaves' total Americas revenue was $54.3 million or approximately 40 % of revenue, compared with $34.2 million, or approximately 30 % of revenue in the first quarter of 2010. Powerwave, a global supplier of end-to-end solutions for wireless communications networks, said last week that 3G standards accounted for approximately 36 % of total revenue and 4G standards accounted for approximately 24 % of total revenue during the first quarter of 2011.
