Light Reading
Quarterly revenues rise 13.8% sequentially but full-year revenues are down 5.7% year-on-year

AlcaLu Reports Q4 Loss of €1.37B

Light Reading
News Wire Feed
Light Reading
2/7/2013
50%
50%

PARIS -- Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced 2012 full year results in line with its guidance and costs savings close to Euro 650 million, which is ahead of plan, and, in the fourth quarter of 2012, a free cash-flow of Euro 355 million with an adjusted operating margin of 2.9%. Ben Verwaayen, CEO Alcatel-Lucent, commented: “Our fourth quarter reflects the early progress of The Performance Program announced last July. We announced clear choices on where we would operate, how we would operate and where we would differentiate.” “We have seen progress on all these choices, and close 2012 ahead on our cost reduction plans. We have addressed half of the previously margin-diluting Managed Services contracts, and show continued and strong growth in IP and Next Generation Wireless. We can see a clear statement of customer confidence through growth in both our order book and backlog.” “In addition, we completed a Euro 2 billion financing which enables us to extend our near-term maturities, stabilizes our balance sheet and provides us with the flexibility to finalize The Performance Program.” “Using assumptions consistent with those disclosed in the documentation of our secured loan, we performed our annual impairment test and booked a non cash charge of Euro 1.4 billion related to the depreciation of goodwill and fixed assets, and the corresponding impact on deferred tax.” Mr Verwaayen added: “Through 2013 we will remain focused on completing The Performance Program. We will deploy our resources to customer relationships where we are a true partner and in product areas where we can drive an economic return for our shareholders.” MAIN POINTS
Fourth quarter revenue increased 13.8% sequentially and decreased -1.3% year-over-year to Euro4,096 million. At constant currency exchange rates and perimeter, revenues increased 16.2% sequentially and decreased 3.9% year-over-year. 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. Our 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, our 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, our 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. Adjusted operating income of Euro 117 million or 2.9% of revenue. Gross margin came in at 30.4% of revenue for the quarter, compared to 34.4% in the year ago quarter and 27.9% in the third quarter 2012. The year-over-year decline in gross margin mainly results from unfavorable product and business mix. The sequential increase in gross margin mainly results from higher volumes and product and customer mix, especially in our S3 segment. Operating expenses decreased 1.7% year-over-year on a reported basis and adjusted for constant currency decreased 3.7% year-over-year, reflecting results of our actions to streamline our cost structure, strongly focusing on SG&A expenses (decreasing 7.8% year-over-year on a reported basis and adjusted for constant currency decreased 10.1%). On a sequential basis, operating expenses were flat as reported and slightly increased 1.5% at constant currency, driven by an increase in R&D (+2.3% quarter-over-quarter when adjusted for constant currency). Fourth quarter reported net loss (group share) of Euro (1,372) million or Euro (0.60) per share. This includes restructuring charges of Euro (247) million, a post-retirement benefit plan amendment gain of Euro 169 million, a net financial gain of Euro 97 million, an impairment charge of Euro (894) million resulting from the impairment test review of our assets carried out at the end of the fourth quarter 2012, using assumptions consistent with those disclosed in the documentation of our credit facilities. It also includes a decrease of Euro (514) million of recognized deferred tax based on assumptions consistent with those used for the annual goodwill impairment test. The reported net loss (group share) also includes Purchase Price Adjustments (PPA entries in relation to the Lucent business combination) of Euro (255) million pre-tax or Euro (163) million after tax. Net (debt)/cash of Euro 126 million, versus Euro (84) million of net cash as of September 30, 2012. The sequential increase in net cash of Euro 210 million primarily reflects a positive operating cash-flow of Euro 702 million, interest paid of Euro (6) million, taxes paid of Euro (8) million, restructuring cash outlays of Euro (85) million, contribution to pensions and OPEB of Euro (62) million and capital expenditures of Euro (186) million. The positive operating cash-flow of Euro 702 million results from an adjusted operating income of Euro 117 million and from a strong positive contribution from the operating working capital requirements of Euro 259 million. The level of receivables sold without recourse amounted to Euro 1,111 million, compared to Euro 958 million as of September 30, 2012. Alcatel-Lucent

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Documentaries
EE: The Road to 5G

12|16|14   |   16:02   |   (1) comment


Andy Sutton, the principal network architect at UK mobile operator EE, explains how his company is using Wembley stadium as a wireless test bed and how that's helping EE to plan the evolution to 5G.
LRTV Huawei Video Resource Center
Highlights of Huawei's NFV Open Cloud Forum 2014

12|16|14   |     |   (0) comments


Huawei hosted its inaugural NFV Open Cloud Forum during the SDN & OpenFlow World Congress 2014 in Düsseldorf, Germany. The Forum brought together technology thought leaders, senior executives and telecom professionals from global carriers, industry associations, as well as other partner companies in the ecosystem, to exchange views on and collectively explore how ...
LRTV Custom TV
Realizing Operators' Digital Vision

12|16|14   |   5:23   |   (0) comments


Leveraging technology is fundamental to digital transformation but understanding customers and serving them really well is at the heart of digital businesses. TM Forum lists the following as the strategic pillars of the digital business: business agility and rapid innovation, operational agility and effectiveness, IT and data centricity, plus customer centricity. ...
LRTV Documentaries
US Cellular Injects Analytics Into LTE

12|16|14   |   2:57   |   (1) comment


US Cellular's Mario Vela explains how the operator uses analytics for network planning and what comes next as the carrier looks to eke more value out of its metrics.
LRTV Interviews
How Cox Biz Plans to Keep Growing

12|15|14   |     |   (1) comment


Steve Rowley, SVP of Cox Business, details how the third-biggest US MSO intends to boost its revenues to $2 billion and beyond over the rest of the decade
LRTV Huawei Video Resource Center
Interview With Bill Zhang, Director of SoftCOM Product Management, Huawei

12|15|14   |   2:50   |   (0) comments


Bill Zhang elaborated on Huawei's open philosophy in NFV solution development and network architecture design at the SDN & OpenFlow World Congress 2014.
LRTV Huawei Video Resource Center
Event Highlights: Huawei at SDN & OpenFlow World Congress 2014

12|15|14   |   3:43   |   (0) comments


Huawei joined the 2014 SDN & OpenFlow Congress as one of the key sponsors and contributors. At the event, Huawei reinforced the openness and flexibility of its network infrastructure strategies, and provided updates on its SDN and NVF innovations. Through participations at the exhibitions, forums and speeches, Huawei encouraged the industry to "think bigger and ...
LRTV Interviews
How Cable Biz Services Hit $10B Mark

12|12|14   |     |   (1) comment


Cable operators reached $10 billion in annual business services revenues by delving deeper into their vertical markets and expanding beyond the smallest firms.
LRTV Documentaries
Mediacom Aims to Test Connected Tractors

12|11|14   |   05:07   |   (3) comments


Cable business service provider is taking its services to the 'agribusiness' sector in partnership with farm equipment specialist John Deere and is getting involved in Gigabit Cities developments.
LRTV Interviews
TWC Business Looks Beyond $3B

12|10|14   |     |   (0) comments


TWC Business Services chief Phil Meeks explains how his unit has reached $3 billion in annual revenues and what its plans are for next year.
LRTV Documentaries
AT&T's New Security Strategy

12|10|14   |   02:36   |   (1) comment


AT&T's Chief Security Officer Ed Amoroso explains how his company is wrapping virtual security layers around micro network domains.
LRTV Documentaries
2020 Vision: A First View

12|9|14   |   02:25   |   (3) comments


At the 2020 Vision Executive Summit in Iceland, unique Heavy Reading research shows that comms service providers are optimistic about the next five or so years.
Upcoming Live Events
February 10, 2015, Atlanta, GA
April 14, 2015, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Hot Topics
Vodafone to Ride T-Mobile Back Into US
Dan Jones, Mobile Editor, 12/12/2014
1-Gig: Coming to a Small Town Near You
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 12/17/2014
Cisco Makes Big Analytics Push
Mitch Wagner, West Coast Bureau Chief, Light Reading, 12/11/2014
Gardner's Departure a Cautionary Tale
Carol Wilson, Editor-at-large, 12/12/2014
T-Mobile Lights Up 27 Wideband LTE Cities
Sarah Reedy, Senior Editor, 12/15/2014
Like Us on Facebook
Twitter Feed
Upcoming Webinars
Webinar Archive