Alcatel-Lucent returned to profit and revenue growth in the third quarter of 2010, while also announcing four high-profile contracts with a combined value of more than EUR4 billion. For the three months to 30 September 2010, it reported a net profit of EUR25 million, compared with a prior-year loss of EUR182 million, on revenue of EUR4.07 billion, up 10.5 percent from EUR3.69 billion.  The net income figure was flattered by a one-off gain related to its retirement provisions, or around EUR18 million after tax. MarketWatch noted that the company’s operating profit failed to meet expectations, and the company’s cash position also caused some concern: its net debt was EUR190 million, compared with a credit of EUR107 million at 30 June 2010, as restructuring costs, pensions contributions, and capital expenditure more than offset positive cash-flow. The company also has a EUR1.41 billion deficit in its pension pot.

Alcatel-Lucent saw a single-digit year-on-year increase in sales in its networks business, with strong growth in IP and wireless partially offset by a decline in wireline networks. Revenue from the wireless business increased by 24.2 percent, to EUR1.07 billion. Bloomberg notes analyst comments that concerns from the company are primarily financial, rather than operational. Alcatel-Lucent says that “traction remained strong” in North America, with strong sales also noted for Asia Pacific and Eastern European markets – specifically China, India and Russia. It today announced a US$4 billion, four-year deal to support Verizon Wireless’ 3G network expansion and its LTE network build-out, including the provision of supporting professional and network integration services. Tomorrow, it is set to sign framework agreements for the supply of equipment to China Mobile, China Telecom and China Unicom, valued at EUR530 million, EUR343 million, and EUR305 million respectively.