Alcatel-Lucent makes loss on static first-quarter revenue

The company will present a plan to turn it around in early summer, it said

Alcatel-Lucent's first-quarter revenue inched up 0.6 percent year on year, but it reported a net loss after making a profit a year earlier.

Sales for the quarter ended March 31 totalled €3.2 billion, up 0.6 percent, but the net loss of €353 million (US$459.6 million) compared poorly with the €259 million profit during the same period last year.

CEO Michel Combes, who joined Alcatel-Lucent from Vodafone in February, said he plans to publish the results of his review of the company's business activities by "early Summer." The company hopes to make between €1 billion and €1.5 billion over the next 18 to 24 months by selling off some of those activities, it said earlier this year.

Alcatel-Lucent attributed the net loss to restructuring charges of €122 million and €152 million of financial loss, among other factors.

The company's operating income improved overall, as did the operating income for all major business units. Only what the company calls 'focused businesses', which include enterprise networks and submarine cables, did worse, together making an operating loss of €9 million for the quarter, down from an operating profit of €14 million a year earlier.

While revenue from the focused businesses, and from managed services, also dropped, things were brighter in the networks and platforms sector, which at €2.7 billion accounted for the bulk of the company's revenue, up from €2.6 billion a year earlier.

Within that sector, services, wireless and fixed networks performed best. The latter was helped by fiber and copper network sales. Last week Alcatel-Lucent announced it had shipped one million VDSL2 vectoring lines to 11 different service providers, including Belgacom and Telekom Austria. Vectoring is a technology used to boost the bandwidth possible over telephony networks.

The wireless division was the biggest part of Alcatel-Lucent with sales totalling €966 million, a 4.9 percent increase year-on-year. The LTE business saw record revenues, as network deployments in the U.S. continued to drive growth.

The black sheep of the networking family during the first quarter was the optics division. Its revenue dropped by 15.6 percent.

Send news tips and comments to mikael_ricknas@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issuestelecommunicationfinancial resultsalcatel-lucent

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

Mikael Ricknäs

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?