Alcatel-Lucent announced changes to its governance structure that will see CEO Michel Combes leave his position on 1 September, as the company delivered a mixed set of Q2 results.
Combes’ departure date was finally confirmed after news first broke that he would leave the company following Nokia’s planned €15.6 billion takeover of the French vendor.
He will be replaced in the interim by chairman of the board Philippe Camus, while Jean Raby, chief finance and legal officer, will be responsible for completing the proposed Nokia deal.
In a statement released today, Alcatel-Lucent confirmed the “Nokia deal is well on track”, as Q2 revenue increased by 6 per cent year on year to €3.45 billion, “excluding managed services and at constant perimeter”, following growth in its IP product division. At constant exchange rates, group revenue was down 8 per cent.
Net loss stood at €54 million, which narrowed significantly from €298 million year-on-year, with the improvement mainly “reflecting lower financial expenses and restructuring costs”.
The company added that revenues from non-telco customers also “grew at double digit pace year on year”, and “next-generation activities” continued to progress, representing 76 per cent of revenue compared to 70 per cent in Q2 2014.
Alcatel-Lucent also trumpeted positive free cash flow of €65 million for Q2, improving by €270 million from Q2 2014, “representing the first Q2 of free cash flow generation since the merger of Alcatel and Lucent in 2006”, said Combes.
“Alcatel-Lucent’s financial results for the first half of 2015 clearly show that the company has delivered on the key objectives of the Shift Plan, launched two years ago,” said the outgoing CEO. “The company is now well on track to complete its turnaround by the end of the year.”
Other changes to its governance structure will see Jean Cyril Spinetta appointed as lead director of the board and the company’s COO Philippe Guillemot will be in charge of leading operational management.
The Nokia deal is set to close in the first half of 2016, and Raby confirmed it could close on the early side of that time frame.