Alcatel-Lucent CEO to step down amid losses and declining revenue

The company reported a €1.37 billion loss in the fourth quarter, on revenue of €4.1 billion.

Alcatel-Lucent reported a fourth-quarter net loss of ¬1.37 billion (US$1.81 billion), and at the same time announced it is hunting for a new CEO.

Current CEO Ben Verwaayen will step down as soon as a replacement is found, and will not seek re-election as a director, the company announced Thursday.

Chairman Philippe Camus said Verwaayen had "created one company out of two" following Alcatel's merger with Lucent Technologies, He "has recently seen through the completion of the stabilization of the company's balance sheet, enabling us to move forward with confidence," Camus added in a statement.

But in the fourth quarter, Alcatel-Lucent made a net loss of ¬1.37 billion on revenue of ¬4.1 billion, which was down 1.3 percent on a year earlier, it reported Thursday.

Things are perhaps not as bad as those figures suggest: The loss for the quarter included a goodwill impairment charge of ¬894 million following the company's annual review of its assets, and a deferred tax charge of ¬514 million.

Fourth-quarter sales in North America rose 13.7 percent year on year, to ¬1.6 billion, but in Europe fell 13 percent to ¬1.11 billion.

The fastest-growing business line was network applications software, up 52.9 percent year-on-year to ¬240 million, followed by IP networking equipment, up 26.4 percent to ¬574 million. Optical networking equipment sales, however, fell 22 percent to ¬565 million, while enterprise networking continued its slow decline, down 3.7 percent to ¬207 million.

Full-year revenue totalled ¬14.45 billion, down 5.7 percent year on year, with a net loss of ¬1.37 billion, compared to a ¬1.1 billion net profit in 2011.

Tags business issuespersonnelalcatel-lucenttelecommunicationNetworkingfinancial results

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Peter Sayer

IDG News Service

Comments

Comments are now closed.

Most Popular Reviews

Follow Us

Best Deals on GoodGearGuide

Shopping.com

Latest News Articles

Resources

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Latest Jobs

Shopping.com

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?