Alcatel-Lucent reported second-quarter revenue down 4.8 percent year on year, but still expects to break even for the full year, excluding costs related to the three-year-old merger between Lucent Technologies and Alcatel. Among the signs of hope are an 8.5 percent increase in revenue compared to the first quarter, the company reported Thursday.
Revenue for the quarter totalled
The company is evaluating plans to sell other noncore assets following its sale during the quarter of a 21 percent stake in aerospace and defense group Thales to Dassault Aviation for
Alcatel-Lucent reported net income of
Nevertheless, CEO Ben Verwaayen said he was pleased with the progress made in the year since he took charge of the company.
Alcatel-Lucent's potential market will shrink by between 8 percent and 12 percent this year, it said, but by cutting costs it hopes to break even, excluding ongoing charges associated with the Lucent acquisition.
The company has achieved 35 percent of its plan to cut annual running costs by
While overall sales are down, hit by a 10.3 percent decline in sales in the company's biggest market segment, carrier equipment, and a 15.7 percent drop in the company's enterprise networking division, there were some bright spots. Sales of application software for conference calling, rich media and online advertising rose 3.2 percent to