Great earnings!
Alcatel Press release / Print
Alcatel Optronics posts record results for First Quarter 2001 and targets 50% growth for Full Year
Paris, April 26, 2001 - 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%."
First Quarter
Sales for first quarter 2001 increased by 105.3 % to Euro 155.8 million compared with Euro 75.9 million in first quarter 2000. Gross profit amounted to Euro 53.9 million, representing a gross margin of 34.6% compared with 37.8% in first quarter 2000. This decrease is due in part to a higher depreciation charge related to capex spending for capacity expansion. SG&A amounted to Euro 9.7 million or 6.2% of sales. R&D amounted to Euro 13.8 million or 8.9% of sales. Income from operations was registered at Euro 30.4 million representing an operating margin of 19.5%. Net income increased to Euro 18.4 million compared with Euro 10.3 million in first quarter 2000. Net income (pre-goodwill) amounted to Euro 20.1 million.
First Quarter 2001 Key Figures
First Quarter
(in Euro millions) 2001 2000
Net Sales 155.8 75.9
Gross Profit 53.9 28.7
Income from Operations 30.4 16.8
Net Income 18.4 10.3
Net Income (pre-goodwill) 20.1 10.3
EPS for Class O shares under GAAP is presented in Alcatel's Financial Statements. Notional EPS calculated below is disclosed for convenience purpose.
2001
Notional EPS* € 0.21
Notional EPS (ADS)* $0.18
Number of Notional Class O Shares Outstanding 94.9
This Notional EPS is calculated as earnings before amortization of goodwill of the Alcatel Optronics Division divided by the notional number of Alcatel Class O shares. (94,875,000). E/ADS has been calculated using the New York noon Euro/dollar buying rate of March 30, 2001, of $0.8794.
About Alcatel Optronics
Alcatel Optronics 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 Optronics 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. |
