Alcatel-Lucent CEO Steps Down as Revenues Fall
Troubled telecom giant now looking for new leadership
Alcatel-Lucent CEO Ben Verwaayen had a tough year in 2012. It's an experience he won't be replicating in 2013, as he is now stepping down as CEO.
Verwaayen's resignation comes as Alcatel-Lucent reports its full-year 2012 results. For the year, revenue declined by 5.7 percent to 14.45 Billion EUR. The company also reported a net loss for the year of 1.37 Billion EUR. The 2012 results stand in contrast to the company's 2011 fiscal year, which was a positive year for revenue and income.
Alcatel-Lucent reported that its Network Applications revenues had full year growth of 6.4 percent. The company also noted that 2012 was the first full year of growth for its Wireline business since the merger of Alcatel and Lucent. Wireline growth was driven by national broadband initiatives that require fiber deployments.
Verwaayen will remain CEO until his successor has been chosen by the Alcatel-Lucent board.
"Alcatel-Lucent has been an enormous part of my life," Verwaayen said in a statement. " It was therefore a difficult decision to not seek a further term, but it was clear to me that now is an appropriate moment for the Board to seek fresh leadership to take the company forward."
Verwaayen has been the Chairman and CEO of Alcatel-Lucent since September of 2008. When Verwaayen took over at Alcatel-Lucent he replaced then CEO Pat Russo who had led the company since it was formed as a merger of Alcatel and Lucentback in 2006.
The merger left the joint company bleeding cash for years.
Alcatel-Lucent did not turn its first yearly profit, post-merger, until fiscal 2011 while under Verwaayen's leadership.