French telecom manufacturer Alcatel posted an 11% increase in third-quarter sales, buoyed by strong demand for its mobile communications equipment.
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Third-quarter sales rose to €3.04bn (£1.7bn) from its restated figure of €2.8bn for the same period in 2003. The Paris-based company said that all of its historical results have been restated to reflect the disposal of Alcatel's optronics, mobile handset and battery divisions.
Sales of mobile communications equipment rose 28.3% to €894m, from €697m a year earlier, as operators increased spending to upgrade their networks, particularly to 3G high-speed mobile internet technology.
Net income in the third quarter increased to €84m from a loss of €284m a year earlier.
In the enterprise market, Alcatel said demand continues to grow for VoIP telephone equipment as well as conferencing and collaboration systems. Third-quarter sales from the company's private communications division increased 11.4% to €935m, from €839m the year before.
Alcatel's fixed-line communications business saw a slight decline in sales, down 3.76% from a year earlier to €1.25bn.
The division's loss was reduced somewhat by growing demand for its integrated broadband telephony, high-speed internet and TV technology systems and IP edge routers. But sales of ADSL (asymmetric digital subscriber line) equipment, while growing strongly in China, grew only moderately in Europe and declined in North America.
A break-out of the ADSL results was not available. However, Alcatel, which is one of the world's largest suppliers of ADSL technology, said it delivered 4.5 million lines in the third quarter, bringing cumulative deliveries for the year to 14.8 million.
John Blau writes for IDG News Service