Infrastructure vendor Alcatel-Lucent announced another loss-making quarter, with Michel Combes (pictured), its new CEO, stating that “we are actively reviewing the Group’s businesses and operating model to design the conditions for value in the future”.
The outcome of this review will be revealed “in early Summer”, the executive said.
The company announced a loss for the quarter of €353 million, compared with a prior-year profit of €259 million, on revenue of €3.23 billion, up 0.6 per cent from €3.21 billion. It benefited in the first quarter of last year from the sale of its Genesys call centre unit.
Alcatel-Lucent said that sales in its Networks & Platforms unit grew 6 per cent year-on-year, with “high single-digit growth in IP and good traction in Wireless, Fixed Networks, Platforms and Services, all partially offset by a double digit decline in Optics”.
Q1 sales in the Wireless unit reached €966 million, up 4.9 per cent year-on-year, from €921 million. This was down from €1.1 billion in the prior sequential quarter.
The company said it witnessed growth in LTE and cable, antenna and tower systems, which was partially offset by an overall decline in 2G and 3G.
The LTE business “reached its highest level of revenue ever”, as network deployments in the US continued to drive growth. Elsewhere, it signed LTE contracts including with Etisalat in Sri Lanka and unveiled its lightRadio Metro Radio product with China Mobile, which will “help accelerate deployment of 4G TD-LTE technology across China”.
The company ended the period with a net debt of €358 million, compared with €147 million of net cash at 31 December 2012, due to negative operating cash flow, interest charges, taxes, restructuring fees, pension contributions and capital expenditure.