Vendor results 1 - 27/8/05

Alcatel confirmed good 2Q results.  Sales were up 8.5% to € 3.15bn, with mobile business up 30% to €958m, enterprise business up 6.5% to €981m while fixed business was down 6% to €1.2bn. Profit rose to €196m, up 104%. The operating margin reached 8.4% on the way to reach 10% for the fiscal year.

Siemens announced revenues of € 18.7bn, up 6.8%, operating income is down 26% to €980m and net income of €389m, down 52%. The telecom division posted a €70m loss (impact of the loss-making mobile phone unit). 

LG Telecom achieved a turnover of $863m and a net profit of $50m (up 132%).

Dassault Systems (France) posted an operational income of €55m (up4%) on sales of € 217m, up 13%. Net income rose 4% to € 38m.

Broadcom reported net revenue of $605m, down 6% yoy, and earnings of $122m.

Microsoft achieved strong quarter with revenues of $10.2bn, up 9%, and net income of $3.7bn, up 37%.

Nokia reported mixed results, below expectations. Revenues grew 25% to €8bn, but net earnings were down almost 10%. Mobile phone sales reached  €4.8bn, but the operating margin plunged more than 3.5 point to 16.2%. During the quarter, Nokia shipped 60.8 million mobile devices.

Ericsson posted strong results. Profit was € 900m (up 18%) and revenues were € 4.1bn, up 18%. Gross margin is decreasing to 46%. Mobile networks sales increased 19% to € 3bn, and professional services sales grew 25% to e650m.

Juniper Networks achieved sales f $493m, up 61%, and profit of $89m.

Motorola exceeded expectations with sales of $ 8.8bn (+17%) and reversed a year-ago loss. The mobile handset division reported sales of $4.9bn, up 24%, and shipping 34m units in the quarter.

IBM achieved a profit of $ 1.8bn (+5.4%) on revenues of $22.3bn (down 3.6% due to the sale of PC business). Outside PC business, sales grew 6%. The gross margin grew to 40.6% (+1 point). Services account for $ 12bn in sales (+6%), while hardware sales were down 25% to $5.6bn. Software sales jumped 10% to $3.8bn.