AlcaLu Tops $1B in IP Gear Sales

Alcatel-Lucent (NYSE: ALU) may be having a tough time of it overall, but the company has some bright spots amongst the gloom, with its IP division one of the stars. (See AlcaLu Reports Q4 Loss of €2.6B.)

In 2003, Alcatel wasn’t a player in IP. Then, it acquired TiMetra. Now, it has just reported annual IP router sales of more than $1 billion -- according to CEO Pat Russo on today’s earnings conference call -- and is the market’s No. 2 player (with market share around the low-to-mid 20s), behind Cisco Systems Inc. (Nasdaq: CSCO) and ahead of Juniper Networks Inc. (NYSE: JNPR). (See AlcaLu No. 2 in IP Edge.)

And then, of course, there's Redback Networks Inc. lurking in the wings. (See Redback Goes on the Offensive and ERIC’s IP Ambitions.) While much attention is being paid to AlcaLu’s woes with its wireless infrastructure and Convergence (voice and applications) units, the vendor’s wireline business lines -- access, optical, and IP -- have been doing well. Wireline equipment sales totaled €6 billion ($8.7 billion) in 2007, up from €5.74 billion ($8.33 billion) in 2006.

Russo said sales of IP equipment, lead by the 7750 and 7450 edge routers, were up 33 percent year on year in 2007 (excluding reseller sales), and broke through the $1 billion revenues barrier for the first time. “We are the fastest growing service provider routing supplier,” boasted the CEO. (See AlcaLu's Router Run Continues, Neos Uses AlcaLu's 7750, Wind Launches IPTV, AlcaLu Racks Up Contract Wins, AlcaLu Wins in China, and AlcaLu Touts IP Upgrades.) And now, of course, AlcaLu is targeting the growing mobile IP infrastructure market with variations on its fixed line gear, and is planning more enhancements to its IP platform. (See AlcaLu Targets Wireless Backhaul and AlcaLu Identifies Deep Packet Potential.)

Russo also said optical equipment sales were up 14 percent in 2007, though she didn’t provide a revenue number, and that AlcaLu had retained its number one position in that market. (See Optical Shines in Q2.)

And in access gear, AlcaLu is the global leader in DSL port deployments, with more than 180 customers. Price pressures, from the likes of Huawei Technologies Co. Ltd. , mean, though, that while AlcaLu had its most successful year ever in DSL port shipments (up 8 percent) total revenues from DSL equipment fell in 2007 compared with the previous 12 months. (See AlcaLu Claims DSL Lead.)

In addition, the vendor is making strong early headway in the GPON market as fiber access rollouts ramp up, with wins at Verizon Communications Inc. (NYSE: VZ) and Orange (NYSE: FTE), among others. (See Hanaro Picks AlcaLu's GPON, Telenor Picks AlcaLu FTTH, AT&T Picks GPON Players, Bright Prospects for GPON, Verizon Deploys GPON, and Vendors Vie for FT GPON Deal.)

— Ray Le Maistre, International News Editor, Light Reading

NeuronHammer 12/5/2012 | 3:48:03 PM
re: AlcaLu Tops $1B in IP Gear Sales Has anyone noticed that none of the mentioned products were former Lucent products, or - god beware - former Riverstone products ?

Seems Riverstone is completely killed ($220 mlns down the drain, great buy close before the merger in end 06) and the UPM/Acuity products finally dead as well. (http://www.lightreading.com/do...

Can anyone name an optical product from the former Lucent part that actually saw the light of day in the past couple of years ? And if I missed one, can anyone name a SUCCESSFUL optical product from the former Lucent part ?
lightreceding 12/5/2012 | 3:48:02 PM
re: AlcaLu Tops $1B in IP Gear Sales and misleading statement.

LR wrote: "In 2003, Alcatel wasnGÇÖt a player in IP."

I guess this is true in a sense. But it gives the impression that Alcatel/Lucent only started in 2003 in IP and ignores everything that went on before. They were not a player in IP in 2003 because all of the former acquisitions were dead by then and they started over with Timetra.

Come on LR please do a little homework. Don't let the PR people that Alcatel fool you. What ever hapened to investigative journalism? Is 1999 so long ago? Both Lucent and Alcatel made many acquistions around that time. Did we forget Ascend? What about all the other startups that Lucent bought? What about all those little startups that Alcatel bought? All gone!

and talking about $1B in sales. Give me a break. That is the bottom number for Cisco to consider a product to be successful.
melao 12/5/2012 | 3:48:01 PM
re: AlcaLu Tops $1B in IP Gear Sales Does it mean that AlcaLu will stop with their Lay Offs ? :)
stuartb 12/5/2012 | 3:48:00 PM
re: AlcaLu Tops $1B in IP Gear Sales The DMX was/is very successful. They also did a fair amount of business with the LambdaUnite product but I hear that it will be killed.
light-headed 12/5/2012 | 3:47:55 PM
re: AlcaLu Tops $1B in IP Gear Sales "and talking about $1B in sales. Give me a break. That is the bottom number for Cisco to consider a product to be successful."

From less than 1M in sales in 4 years. Go back and see how long it took cisco to reach 1B in sales from their first 1M year. Besides, your logic says that all Juniper revenue is just a rounding error to Cisco. Does that make Juniper completely insignificant and meaningless?

We are talking about ALCATEL here! This is like the Italians winning a war... heck, even a battle in a war.

(Don't mean to slight Italians, great peaceful loving people that are too busy making great food, wine and art to want to fight. very civilized people. my kind of people.)
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