French telecom-equipment maker Alcatel-Lucent SA (ALU) Friday reported a loss for the first quarter, compared to a profit last year, amid a marginal rise in revenues. The newly appointed chief executive Michel Combes said the company's businesses and operating model are being reviewed.
Michel Combes, the new CEO, said, "Alcatel-Lucent's first quarter results reflect both encouraging trends in the marketplace and good progress with The Performance Program, for which discipline on execution remains the priority in 2013.''
Combes became CEO, effective April 1, succeeding Ben Verwaayen, who announced his stepping down in February. He said the firm is actively reviewing its businesses and operating model to design the conditions for value creation. ''I am looking forward to sharing the outcome in early Summer," Combes said.
First-quarter reported net loss group share was 353 million euros ($459.62 million), compared to profit of 259 million euros last year.
The latest results included restructuring charges of 122 million euros and 152 million euros of financial loss, as well as Purchase Price Adjustments of 14 million euros after tax.
Adjusted loss totaled 339 million euros, while in the prior year the company had earned 301 million euros.
Revenues grew 0.6 percent to 3.226 billion euros from last year's 3.207 billion euros. At constant currency exchange rates and perimeter, revenues advanced 1.8 percent year-over-year.
Revenue from Networks & Platforms grew 4.2 percent to 2.71 billion euros, with high single digit growth in IP and Fixed networks. However, the Optics business saw nearly 16 percent drop in revenue.
Focused Businesses revenue declined 22 percent, with declines in both Enterprise and Submarine businesses. The slowdown continued in the Managed Services segment, amid restructuring.
Geographically, revenues increased over 15 percent in North America to 1.55 billion euros.
While Japan showed good traction and China stabilized, revenue dropped nearly 6 percent in the Asia Pacific region. Cautious spending continued in Europe, which reported a 10 percent revenue decline.
Revenue from Rest of world dropped 13.3 percent, amid weakness in Central and Latin America, except Brazil, and Middle East and Africa.
The stock rose 3.3 percent on Thursday to settle at 1.09 euros.
For comments and feedback: editorial@rttnews.com