Alcatel-Lucent Revenue Declines, CEO and Chairman Leave
Currency fluctuations dragged Alcatel-Lucent's second-quarter revenue down 5.2 percent year on year, while its net loss doubled due to exceptional charges, it reported Tuesday. The company also announced the resignation of its CEO and Chairman.
Alcatel-Lucent reported revenue of
The company's net loss almost doubled to
Performance was not the reason for the resignation of Chairman Serge Tchuruk and CEO Patricia Russo, the company said. Rather, with the merger now complete, the company needs new management with a new strategy for growth, Tchuruk said in a statement.
He will quit on Oct. 1, while Russo will leave at the end of the year, or sooner if the board finds a replacement.
Looking ahead, Alcatel-Lucent expects third-quarter revenue to decline compared to the second quarter, followed by a strong rise towards the end of the year, as the telecommunications infrastructure market remains broadly flat.
The company is keeping a wary eye on the capital expenditure plans of European fixed-line carriers, which it fears could be hurt by the global economic slowdown.
Revenue from carrier networking equipment, the bulk of Alcatel-Lucent's business, dropped 9.4 percent year on year to
There were brighter areas, with double-digit revenue growth from other network infrastructure, including GSM (Global System for Mobile Communications), W-CDMA (wideband CDMA) and WiMax.
Services revenue rose faster than expected, up 9.1 percent to
Alcatel-Lucent's smallest business segment, enterprise networks, saw revenue grow 2.7 percent to