Alcatel-Lucent published Q4 results which it said show “significant improvement in operating profitability and segment operating cash flow”, as it continues its restructure to focus on markets such as IP and cloud networking, ultra broadband fixed and mobile access.

“We have demonstrated today that we are well on track to meet The Shift Plan’s objectives. We have repositioned our company as a specialist in IP and Cloud Networking, as well as in Ultra-Broadband Access, and we are seeing strong commercial traction in these segments,” said Michel Combes (pictured), CEO of the company.

The company also confirmed a long-anticipated deal to sell-off its Enterprise unit, with a binding offer made by China Huaxin. The transaction gives the business an enterprise value (cash-free/debt-free) of €268 million, and Alcatel-Lucent will retain a 15 per cent stake.

Combes has promised at least €1 billion of non-core asset disposals over the 2013-2015 period. The company has already inked a deal to sell its LGS Innovations unit.

In Q4, its Wireless Access unit saw revenue of €1.24 billion, up 10.4 per cent year-on-year. It noted that LTE revenue had more than doubled, driven by deployments in China and the US.

But this was partially offset by weakness in 2G and 3G sales, particularly for CDMA infrastructure, which represented less than 15 per cent of wireless revenue in Q4.

It also talked-up momentum in its small cells business, including a recent TD-LTE deal win with China Mobile.

The company reported a fourth quarter net income of €124 million, compared with a prior-year loss of €1.56 billion, on revenue of €3.93 billion, down 4.1 per cent from €4.1 billion. The prior-year period included a €894 million charge related to the impairment of assets and a €611 million income tax charge.

On an operating level, the company saw a Q4 profit of €287 million, compared with a prior-year profit of €64 million.

For the full year, net loss was €1.3 billion, compared with a 2012 loss of €2 billion, on revenue of €14.44 billion, down 0.1 per cent year-on-year from €14.45 billion. On an operating level, profit was €204 million for the twelve months, compared with a prior-year loss of €493 million.

Fixed-cost savings for the year were €363 million, “significantly above” the target range of €250 million to €300 million.

For the full year, free cash flow was negative €636 million, although the company noted an improvement excluding restructure charges and interest paid.

Alcatel-Lucent said that its balance sheet was significantly reinforced during the quarter, through a capital increase of €1 billion. It has also restructured its debt.

The board has opted not to pay a dividend for 2013.