Alcatel-Lucent Continues Company Transformation
Revenues fall and European uncertainty hits telecom vendor.
Alcatel-Lucent (NYSE:ALU) reported third quarter fiscal 2011 earnings today showing progress in the company's mission to become profitable, though many challenges remain
For the quarter Alcatel-Lucent reported revenues of 3.8 billion Euro which is a 6.8 percent decline on a year-over-year basis. Net Income was reported at 194 million Euro a dramatic increase from the 25 million Euro the company reported for the third quarter of 2011.
"It's important to note that today I can tell you that all our segments are profitable," Ben Verwaayen, Chief Executive Officer of Alcatel-Lucent said on the company's earnings call.
Alcatel-Lucent's enterprise business was one of the growing segments during the quarter. Enterprise business revenues grew to 319 million Euro for an 8.9 percent year-over-year gain.
While Verwaayen noted that progress has been made by Alcatel-Lucent, economic uncertainty in Europe is a concern. As such the company is now warning the fourth quarter will come in weaker than initially expected.
"So if you look to Europe, what's going on? I think first of all, it's very customer-specific. That's one of the things in a hesitant market," Verwaayen said. "Some people are more hesitant than others. Some people make different choices than others."