Alcatel Optronics Reports Record Q1

PARIS -- Alcatel Optronics (Paris: CGO.PA and NASDAQ: ALAO), a leading supplier of optoelectronic components, today reported first quarter results, with sales at Euro 155.8 million, up 105% over first quarter last year and up 6.6% sequentially over fourth quarter 2000. "First quarter top line growth came in slightly better than expected and substantially better than the market," said Jean-Christophe Giroux, CEO.

"We benefited from the sustained demand for terrestrial and submarine D-WDM systems and a rapidly growing market for Metro applications. At the same time, we continued to expand our capacity and to recruit talent. Looking ahead, we continue to feel confident about the growth of our business. We believe we will continue to outperform the market, which is quite an accomplishment in today's environment. Based on the strength of our order book today, for the second quarter we expect high single digit sequential sales growth with an operating margin improving by 0.5 to 1 point over the first quarter. Nevertheless, we recognize a change in the landscape and a reduced visibility for the end of this year, especially on the submarine market and with certain U.S. customers. We are also anticipating increasing price pressures during the second half of the year and have implemented a cost containment program to counteract this effect. Given the current market conditions we now anticipate that our sales growth will be around 50% with an operating margin around 20%."

Alcatel Optronics
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