It has been a long, tough road for Alcatel-Lucent toward profitability. The company recorded its first yearly profit last quarter, though for its first quarter of 2012, the picture is not quite as rosy.
For the quarter, Alcatel-Lucent reported revenue of 3.2 billion Euro, for a 12.3 percent year-over-year decline. Net Income was reported at 398 million Euro, though there is a catch. During the quarter, Alcatel-Lucent completed the sale of its Genesys call center division.
“We received almost 1.1 billion Euro of cash proceeds from the Genesys sale, and the capital gain on that was in excess of 600 million Euro,” Alcatel-Lucent CFO Paul Tufano said during the company’s earnings call. “When you eliminate that and you look at adjusted operating profit, the quarter was a loss of 221 million Euro.”
Though Alcatel-Lucent is facing its fair share of market challenges, due to market conditions and competitive pressures, CEO Ben Verwaayen is taking a somewhat stoic perspective on the situation.
“If we look to the market, if you look to the fundamentals of the market, nothing has changed,” Verwaayen said during the earnings call. “People still build out networks. People are making plans for fiber networks around the world and governments are looking to building a digital infrastructure.”
Read the full story at EnterpriseNetworkingPlanet:
Alcatel-Lucent Still Struggling to Turn a Profit
Sean Michael Kerner is a senior editor at InternetNews.com, the news service of the IT Business Edge Network, the network for technology professionals Follow him on Twitter @TechJournalist.