ALCATEL-LUCENT, ACER, AFFILIATED CS, SYMANTEC THIRD QUARTER 2009 REPORT - TBR HIGHLIGHT - Sponsored Whitepaper

The following is information compiled from recently published Technology Business Research reports. Excerpts included in this release are: Alcatel-Lucent – Network Business Quarterly, Acer Inc. – Computer Business Quarterly, Affiliated Computer Services – Professional Services Business Quarterly, Symantec Corp. – Software Business Quarterly.

TBR believes Alcatel-Lucent’s 3Q09 results were better than indicated by investor reaction. Though investors pushed Alcatel-Lucent shares down 12% in response to the release of its financials, the company actually reported a number of positives. In IP & optical, one of Alcatel-Lucent’s core focus areas, the good news is clear despite year-to-year revenue declines of 5% and 12%, respectively: The company now has data networking relationships with 22 of the top-30 network operators, including growing strength among fast-growing operators in Asia. Other core growth segments also fared well for Alcatel-Lucent in 3Q09: The services segment posted its fifth consecutive quarter of 20% year-to-year revenue growth, with particularly strong growth coming from managed services and complex network integration projects; and carrier applications reported strong results, including 30%+ year-to-year revenue growth and positive results in digital media & advertising and remote customer management software.

Continued double-digit unit shipment growth leads to record revenue and profit. Acer shipped nearly 12 million PCs in 3Q09, driving revenue and profits to record levels. The company grew PC shipments 19.6% and although ASPs continue to decline (15.7% in 3Q09), the decline was less drastic than in recent quarters and helped to drive 6.5% revenue growth. Gross, operating and net income all grew versus the year-ago quarter, leading to record profit levels for Acer; however, margins remain low relative to competitors.

Adjustments to the economy leave Symantec positioned for growth. Even while integrating the MessageLabs acquisition, Symantec decreased total headcount slightly to control operational expenses. Operating expenses declined for the fourth consecutive quarter in 3Q09, as Symantec brought spending in line with declining revenue growth. Symantec's 3Q09 financial performance reflects its early reaction to the recession, as revenue declines slowed to 2.9% and operating income increased year-to-year.