Alcatel-Lucent (ALU: Quote) reported first-quarter net profit attributable to equity owners of 398 million euros or 0.14 euros per share versus loss of 10 million euros or breakeven per share last year.
Earnings per ADS were $0.19 versus loss per ADS of $0.01 in the same quarter a year earlier.
Adjusted net income was 440 million euros or 0.16 euros per share, higher than 32 million euros or 0.01 euros per share last year.
Adjusted earnings per ADS rose to $0.21 from $0.02 last year. On average, seven analysts polled by Thomson Reuters expected the company to report breakeven per share. Analysts' estimates typically exclude special items.
Revenues declined 12.3% to 3.21 billion euros from 3.66 billion euros in the prior-year quarter. Revenues were down 14.8% year-over-year at constant currency.
Commenting on the results, Ben Verwaayen, CEO Alcatel-Lucent, said, "Today's results reflect a slow start to the year while demonstrating good control on both cash and costs and a strong momentum in our next generation products portfolio."
"But gross margin is not at the level we would have liked. Since the last quarter of 2011, we have been negatively impacted by lower volume and by an unfavourable revenue mix, particularly in Services".
Ben Verwaayen added, "However, market uncertainties remain high in Europe and the transition from CDMA to LTE is accelerating in North America."
"We leave our 2012 full year guidance unchanged, and we expect to have better visibility on our profitability at the end of the current quarter."
The company still aims to achieve in 2012 an adjusted operating margin higher than the 3.9 percent reported in 2011, while reaching a strong positive net cash position at the end of 2012.
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by RTT Staff Writer
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