Alcatel-Lucent Posts Loss
Alcatel-Lucent posted a loss yet again, the reported net loss for the third quarter was reported at
Revenues came in at
At the same time, Alcatel-Lucent reiterated that its full year 2008 revenue should be down in the low to mid single-digit range.
Newly appointed CEO Ben Verwaayen is happy to be onboard, but company profitability "remains unsatisfactory," especially in the carrier space, where revenues declined 9.4 percent, at a constant exchange rate and on a year-over-year basis.
The macroeconomic environment has become even more challenging, and in addition to the ongoing CDMA (Code Division Multiple Access) decline, Alcatel-Lucent saw a reduction in spending on fixed access and terrestrial optics, in developed markets, according to Verwaayen.
The drop could have been bigger but was partly offset by other better performing segments, including strong performance of certain carrier activities, including WCDMA (Wideband Code Division Multiple Access), NGN (Next Generation Networks) and submarine networks, according to Verwaayen.
But there are also divisions that are performing better, the company continued to grow its enterprise business at a healthy rate and saw accelerated growth in services, Verwaayen said.
Enterprise revenues grew 6.3 percent and Services revenues grew 16.6 percent, at a constant exchange rate and on a year-over-year basis.
What the future holds for its 20.8 percent stake in Thales is uncertain. The company is currently reviewing all options regarding its, including a potential sale including a potential sale.