Alcatel-Lucent CEO to Resign As Company Posts Continuing Losses

Published on: 7th Feb 2013

­Alcatel-Lucent's CEO, Ben Verwaayen has announced that he will resign from the struggling company once a replacement has been named.

The announcement came as the company announced that its fourth quarter revenues fell by 1.3% to EUR4.1 billion -- and would have fallen further without currency gains -- while the net loss deepened to EUR1.37 billion.

In the quarter, Networks witnessed a mid single-digit decline year-over-year, a substantially lower rate than in the first three quarters of the year. The IP business continued its growth trajectory, posting a double-digit increase and its highest revenues level ever, while Wireless stabilized after four quarters of double digit declines, driven by US service providers stronger spending.

Optics business declined at a double digit rate, driven by muted spending in terrestrial and low point in submarine. Resulting from a high comparison basis, Wireline business declined at a low double digit rate in the fourth quarter. The Software, Services & Solutions (S3) segment shifted to positive territory, benefitting from Network Applications' strong performance. Finally, the Enterprise segment posted a mid single-digit decline.

From a geographic standpoint, also adjusted for constant currency and compared to the year ago period, North America posted a 10% growth rate. Mixed trends in Asia Pacific resulted in a low double-digit decline, traction in Japan being offset by continued low activity in China. Cautious spending persisted in Europe, which also declined at a low double-digit rate. Rest of world was resilient, driven by continuous traction in Brazil and by Middle East and Africa, which returned back to growth after several quarters of decline.

The Board has recommended not to pay a dividend for fiscal year 2012.

 

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