Feeds

Alca-Lu posts loss, share price rises

Not as horrible as it might have been

The next step in data security

The combination of American growth, continuing staff cuts and an ongoing restructure last week delivered a narrowing quarterly loss for Alcatel-Lucent.

On sales of €3.67 billion ($US5 billion), the vendor turned in a not-catastrophic net loss of €200 million ($US275 million), weighed down by €335 million ($US461 million) in restructuring and financial charges.

What got the share-market bulls beaming was that third-time-lucky CEO Michael Combes seems to have made some progress in his strategy to turn around the vendor, which has accumulated losses of $US10 billion over the last seven years. From an operating loss of €126 million ($US173 million) for the same quarter last year, Alcatel-Lucent now put in an operating profit (prior to the afore-mentioned charges) of €116 million ($US160 million).

Its Core Networking business unit is approaching half of Alca-Lu's total business, reaching €1,496 ($US2,058) in the quarter, with IP routing rising 7 per cent to €580 million (nearly $US800 million). The company is also pleased to see growth in 100 Gbps backbone products, which now represent 30 per cent of its WDM line card shipments.

Its LTE business is piling on customers in the USA, APAC and EMEA regsgions and rose by 12.6 per cent, but in the intensely competitive access business, the company could only manage 3.7 per cent year-on-year growth.

Combes says Alcatel-Lucent will undertake €1 billion ($US1.4 billion) in asset sales by 2015. His plan for staff cuts of 10,000 worldwide is continuing, and Combes said the company expects to overdeliver on its turnaround strategy. ®

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.