The vendor also noted that it expects to report a "significant sequential increase" in fourth-quarter revenues that, coupled with tight cost controls, should result in much improved operating profits.
Why it matters
Signs of recovery at AlcaLu, which reported improved performance at all three divisions (Networks, Applications, and Services) spells good news for the rest of the vendor community, as it signals a growing willingness on the part of operators to spend on new technologies.
But it still has some work to do to improve its operating profitability. In a "first take" research note Thursday morning, Soleil Securities Group Inc. analyst Mike Genovese described AlcaLu's third-quarter results as "positive but mixed." Genovese noted that the company's gross margin (33.8 percent) was lower than expected because of fewer software upgrades and strong revenue growth in China and India, where margins tend to be lower than average. This, in turn, led to the lower-than expected operating profits. For more
For more on AlcaLu's ongoing recovery, and to check out some of the interesting new business the company has won lately, see these stories:
- KPN Kicks Apps With AlcaLu
- 360Networks Deploys AlcaLu
- Turk Telecom Checks Out AlcaLu's Phantom DSL
- AlcaLu Pumps Up Backhaul Portfolio
- AlcaLu Opens Ops Hub in India
- AlcaLu OpenPlugs Away at Apps Enablement
- AlcaLu in Recovery Mode