Losses Continue, Bright Spots Ahead At Alcatel-Lucent

Though impacted negatively by weakness in the dollar versus the euro, the company said it will continue to pursue 3G, 4G, and WiMax.

The unbroken string of disappointing financial results at Alcatel-Lucent continued Wednesday as the company reported another net loss in its first-quarter report.

The company said revenue dropped 0.5% from the year-earlier quarter to 3.864 billion euros ($5.97 billion), while the net loss was 181 million euros ($280 million). The company noted that its financials were impacted negatively by weakness in the dollar versus the euro.

CEO Patricia Russo sought to highlight brighter spots in the company's business. "Our carrier business grew year-over-year at constant exchange rate, reflecting the solid performance of our wireline business, essentially driven by optics," she said in a statement. "Our wireless access business showed good resilience, as the expected decline in CDMA was more than offset by the strong year-over-year double-digit growth of our revenue in GSM, WCDMA, and RFS.

"Our strategic initiatives to enhance growth in the Enterprise and Services businesses are paying off as we report a strong year-over-year growth in each of these segments at constant exchange rate. And our business in North America showed good year-over-year growth in U.S. dollar terms."

The report was the first following a full year of operating as a merged company after Alcatel acquired Lucent Technologies, formerly a key manufacturing and research facility of the old AT&T.

Like most other companies in the telecommunications equipment business, Alcatel-Lucent has been struggling to regain traction as telecom service providers order new gear.

The company is betting heavily on 3G and 4G as well as on WiMax equipment. In the report, Alcatel-Lucent said WCDMA revenue more than doubled during the quarter as several key carriers ordered new equipment. Business in emerging markets such as China, India, the Middle East, and Africa offset much of the decline in mature markets, Alcatel-Lucent said.

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