France-based vendor Alcatel-Lucent is to reduce its costs after a tough last quarter.
The company saw revenues fall to €3.8 billion in Q3 – a drop of 6.8 percent year-on-year and 2.7 percent on the previous quarter.
Gross profit saw a year-on-on year rise of 0.2 percent to €1.4 billion, although it fell 1.3 percent on Q2.
“We are reducing our costs and increasing our profitability,” said CEO Ben Verwaayen, who added that the transition from voice to video was well and truly under way.
The company’s network division was hardest hit, with revenue falling 7.7 percent to €2.3 billion. Only the IP network segment registered a gain as revenue from wireless, wireline and optics all decreased.
The new Software, Services & Solutions business unit was up on the previous quarter but down year-on-year.
However, the company’s enterprise division did register a rise and will bring in a further €1.1 billion from the recent announcement that its Genesys business is being sold to private equity house Permira.
“We are not at a level we are satisfied with,” said Verwaayen. “And given economic uncertainties, we will take more radical actions to accelerate our transformation and reduce quickly our costs structure, especially in Europe.”
Revenues in Europe fell 5.8 percent compared to Q2 while those in North America fell 5.1 percent. By contrast, revenues in Asia Pacific rose 5.4 percent.