Mobile // Mobile Business
News
10/31/2008
04:52 PM
Connect Directly
RSS
E-Mail
50%
50%

Alcatel-Lucent CEO Steers Firm To A Lower Loss

New chief Ben Verwaayen's firm reported a loss of $51.8 million for its third quarter on a 6.6% drop in sales of $5.15 billion.

It isn't often that a chief executive will be hailed when his company loses $52 million, but that's exactly what happened when Alcatel-Lucent's new chief Ben Verwaayen announced a $52 million loss this week.

The combo U.S.-French company reported a loss of $51.8 million for its third quarter on a 6.6% drop in sales of $5.15 billion and, because the loss was so much less than last year's $437 million, Verwaayen was praised by investment banking analysts and Alcatel-Lucent stock jumped in early trading.

Verwaayen, a former BT Group chief, took over the reins at Alcatel-Lucent in September and immediately seemed to calm employees and investors. The veteran telecommunications executive gave out his e-mail address to employees and indicated he has read the "truckloads of e-mail" he has received.

The company cited strong performance in its W-CDMA infrastructure as well as in its submarine networks. However, its CDMA business has been declining along with reduced customer spending in fixed access and terrestrial optics technology.

"We met our revenue guidance in a more challenging macroeconomic environment," Verwaayen said in a statement Thursday. "Having said that, our profitability remains unsatisfactory. The gross margin came in at the lower end of our expectations in the third quarter, reflecting an adverse shift in both our product and geographic mixes."

Verwaayen was named to head the company last September after Alcatel-Lucent lost its previous top executives, CEO Patricia Russo and Chairman Serge Tchuruk.

Comment  | 
Print  | 
More Insights
InformationWeek Elite 100
InformationWeek Elite 100
Our data shows these innovators using digital technology in two key areas: providing better products and cutting costs. Almost half of them expect to introduce a new IT-led product this year, and 46% are using technology to make business processes more efficient.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek - July 21, 2014
Our new survey shows fed agencies focusing more on security, as they should, but they're still behind the times with cloud and overall innovation.
Flash Poll
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
In this special, sponsored radio episode we’ll look at some terms around converged infrastructures and talk about how they’ve been applied in the past. Then we’ll turn to the present to see what’s changing.
Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.