Alcatel's Results Display Optical Strength

If investors needed another reason to believe that Lucent's (LU Quote) problems are of its own making and Nortel's (NT Quote) confidence in the optical-equipment market isn't misplaced, then Alcatel's (ALA Quote) third-quarter results Tuesday gave it to them.

The French telecom equipment manufacturer said third-quarter revenue grew 50% from the year before to 7.9 billion euros ($6.6 billion U.S.), compared with expectations of around 7 billion euros. Operating profit for the period grew 109% to 619 million euros, which was higher than the expected 550 million. The company earned 22 cents per American depositary share, up from 8 cents per ADS a year earlier.

Alcatel also forecast that 2001 revenue growth will come in above market expectations

On the New York Stock Exchange, the stock was up $5.25, or 9.2%, to $62.38. ...