Alcatel-Lucent fourth-quarter results disappoint
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(InfoWorld) - Alcatel-Lucent's revenue fell for the fourth quarter and the company plunged into loss. The performance was disappointing, but theÂ long-term prospects of the mergerÂ of Alcatel and Lucent Technologies remain positive, the company said. Fourth-quarter revenue dropped 16 percent year-on-year on a comparable basis, to â¬4.42 billion ($5.83 billion as of Dec. 31, the last day of the period reported) from â¬5.25 billion, while revenue for the full year fell to â¬18.25 billion from â¬18.57 billion. Although the merger was onlyÂ completed at the end of November, the company provided pro-forma figures as if the merger had taken place on Jan. 1, and restated earlier figures on a comparable basis. On that basis, the company made a net loss of â¬618 million in the fourth quarter, compared to a net profit of â¬381 million a year earlier. For the full year, net profit fell to â¬522 million, down from â¬1.67 billion on a comparable basis the previous year. The disappointing performance was due to uncertainty among customers and staff about the outcome of the merger, and to a highly competitive market in North America during the fourth quarter, the company said. As it proceeds with the integration of Alcatel and Lucent, the company expects to realize cost savings of â¬600 million this year, and a total of â¬1.7 billion in cost savings within three years of the merger. The savings will come from optimization of its supply chain, and the elimination of duplicate resources and products, and around 12,500 jobs. Post-merger, the company makes around three-quarters of its revenue from carrier products. Revenue of â¬1.47 billion came from fixed-line telecommunications equipment in the fourth quarter, â¬1.24 billion from wireless equipment, and â¬510 million from converged products. Enterprise networking equipment accounted for â¬410 million, and services for â¬740 million. Demand was particularly strong for enterprise IP telephony equipment in Europe, the company said.
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Franco-American telecommunications equipment maker Alcatel-Lucent on Friday posted a loss of about $3.8 billion for the fourth quarter, said it would scrap its 2007 dividend and predicted a rocky 2008.
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Alltel Corp. reported Tuesday that profits from its wireless business rose as it built sales and added customers in its fourth quarter, but overall earnings slid 12 percent, showing the effect of Alltel's spinoff of its traditional phone business.
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Motorola&#39;s mobile-phone business continued to lose its signal in the fourth quarter, dragging the company&#39;s revenue and profit down.The Schaumburg, Illinois, company has had trouble coming up with a phone to match the success of its original Razr, which is now several years old and does little for the company&#39;s bottom line. Motorola&#39;s Mobile Devices unit had sales of $4.8 billion in the fourth quarter, down from $7.8 billion a year earlier, and the division lost $388 million compared with profit of $341 million in last year&#39;s fourth quarter.Stronger results with enterprise and home-network products eased Motorola&#39;s pain, but the company still reported a steep fall in profit for the quarter and a loss for the full year 2007. In the fourth quarter, Motorola had net income of $100 million and earnings per share of $0.04, down from $529 million or $0.25 a year earlier. The company lost $49 million or $0.02 per share for the year. Companywide, revenue in the quarter fell to $9.6 billion from $11.8 billion a year earlier.The outlook for the current quarter is no better. Along with Wednesday&#39;s earnings report, Motorola forecast a loss of between $0.05 per share and $0.07 per share, excluding charges associated with its cost-reduction initiatives and other items.&quot;The recovery in Mobile Devices will take longer than expected and there is a lot more work to be done,&quot; CEO Greg Brown said in a prepared statement. The company&#39;s &quot;primary focus&quot; is to improve profits and enhance its mobile products, he added. Motorola is also focused on reducing costs and took several steps to make the Mobile Devices business more efficient, he said.Once locked in a struggle with Nokia for cell-phone sales leadership,&#160;Motorola had fallen to third place&#160;behind Samsung by last year&#39;s third quarter. Last May, when it introduced the Razr&#39;s successor, called the Razr2, the company said it hoped the new device would cut losses. But tough times have continued in the face of Apple&#39;s iPhone and other high-profile competitors, and in late November,&#160;CEO Ed Zander was replaced by Brown.Fourth-quarter sales were up in both the Home and Networks Mobility group, which makes set-top boxes and wireless infrastructure, and in Enterprise Mobility, which benefitted from Motorola&#39;s acquisition of Symbol Technologies early last year. The home business saw sales rise 11 percent to $2.7 billion, though its profit fell to $192 million. Profit in the home business soared to $451 million from $323 million in the fourth quarter of 2006, while sales were up 35 percent to $2.1 billion.In midday trading Wednesday, Motorola&#39;s shares on the New York Stock Exchange were down $2.32 to $10.00 amid a generally weak day on Wall Street.
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Alcatel-Lucent reported higher sales but a net loss for the fourth quarter due to a big writedown in its CDMA (code division multiple access) and IP (Internet protocol) multimedia services businesses.
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Alcatel-Lucent  on Friday said it would cut about 12,500 jobs over three years, more than previously announced, as it reported a fourth-quarter net loss and forecast a drop in first-quarter revenues.
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PARIS, February 27  /PRNewswire-FirstCall/ -- Alcatel-Lucent (Euronext Paris and NYSE: ALU) and E-Plus announced today that the world's leading network integrator will be managing several network business divisions of Germany's third-largest mobile communications provider, E-Plus Mobilfunk.
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By LAURENCE FROST  PARIS - Alcatel's purchase of U.S. rival Lucent Technologies Inc.
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Profit fell 94 percent in the third quarter as sales fell in the companyâs cell phone business, but it forecast better-than-expected fourth-quarter results.
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Newly merged telecommunications equipment maker  Alcatel-Lucent has reported a slump in underlying profits last year and ramped up planned job cuts to 12,500 or 15.6 percent of the workforce.
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The Internet giant disappoints investors with the smallest gain in its history as a public company.
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By Victoria Shannon  A cloud of uncertainty among the world's phone companies left Alcatel-Lucent with a heavy net loss Friday in its first quarterly report as the world's largest telecommunications equipment maker, and the company moved to eliminate thousands more jobs.
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Costly woes continue Alcatel-Lucent has admitted its outlook is dire after it disclosed it would be writing down $4.3bn of assets.â¦
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Fourth-quarter earnings dropped 30 percent to $128.9 million on restructuring and other charges, but the results still beat analystsâ estimates.
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Earnings from hot new issue Jamdat Mobile don't live up to analysts' expectations.
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Lucent Technologies has averted a potentially embarrassing delay of its shareholder vote on a merger with Alcatel,Â settling two suits by shareholdersÂ who said the deal doesn't maximize shareholder value.
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Verizon Communications announced earnings of $1.07 billion in the fourth quarter, but said its traditional telephone business remained a drag on the bottom line.