Alcatel-Lucent sees green shoots of recovery

CEO Ben Verwaayen accentuated the positive as he delivered his first set of quarterly results in charge of Alcatel-Lucent this morning, with evidence of a recovery in the firm’s fortunes at long last on the horizon.

CEO Ben Verwaayen accentuated the positive as he delivered his first set of quarterly results in charge of Alcatel-Lucent this morning, with evidence of a recovery in the firm’s fortunes at long last on the horizon.

As was widely expected, the company posted another three month loss, but this time Alcatel-Lucent was out by just €41m, compared to €345m last year.

Year-on-year, sales declined 6.6% to €4.06bn but even here the picture was more optimistic; enterprise and services revenues grew by 6.3% and 16.6% respectively, while carrier revenues fell again by just under 10%.

Verwaayen said: “We are in good shape from a cash standpoint. We achieved a positive cash flow from operating activities this quarter through the reduction of our operating working capital requirements. We [also] met our revenue guidance in a more challenging macroeconomic environment.”

He admitted profitability was less than satisfactory and revealed he would be releasing details of an action plan during the coming months to address this. Alcatel-Lucent is also looking into a potential sale of its 20% stake in defence electronics specialist Thales.

The vendor predicted the comms sector would remain relatively flat over the coming three months thanks to the impact of the recession.

In other news, Alcatel-Lucent has been appointed to Secerno’s database security consultants programme. Alcatel-Lucent will use Secerno’s SQL Agile product set for application security consulting within its security services division and will also resell Secerno.SQL products to its customer base worldwide.

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