Network vendor Alcatel-Lucent announced solid results for the quarter to 30 September 2011, but Ben Verwaayen, its CEO, warned that “we are not at a level we are satisfied with.”

In a statement, Verwaayen (pictured) said that given continued economic uncertainty, it will “take more radical actions to accelerate our transformation and reduce quickly our cost structure, especially in Europe.”

Due to “market uncertainties,” as well as “selective spending from our customers, especially in Europe,” the company said it now expects weaker revenue in the fourth quarter than it had previously forecast.

For the period, Alcatel-Lucent announced a net income of EUR194 million, compared with EUR25 million in the prior-year period, on revenue of EUR3.8 billion, down 6.8 percent from EUR4.07 billion. Sales in its wireless business were EUR1.03 billion, down 3.4 percent from EUR1.07 billion.

It also saw its debt grow to EUR620 million, from EUR376 million at the end of June 2011, as a result of negative operating cash flow, interest expense, restructuring costs, pension contributions and capital expenditure.

Wireless was identified as one of the company’s key areas of strength, and revenue for this business increased by 2.8 percent if taken at constant currency exchange rates.

Alcatel-Lucent said that growth continued in the Americas, led by its CDMA EV-DO and LTE businesses (the latter in particular seeing continued success at AT&T and Verizon), both of which contributed to “strong double-digit growth in the region.”

It has also been selected by Telefonica to launch “pre-commercial” pilot LTE networks in Madrid and Barcelona, and inked a deal to deploy a mobile broadband network with Etisalat based on the vendor’s LightRadio product family.

China Telecom also picked the company to expand and upgrade its CDMA network, with China Unicom issuing a contract to update its GSM/W-CDMA network in ten provinces.

The company also trumpeted a femtocell deal with VimpelCom in Russia.