Alcatel-Lucent made a loss of €1.3 billion last year but pointed to an improved Q4 performance as a sign that its turnaround is on track.
The France-based vendor made a profit of €134 million between October and December compared to a loss of €1.6 billion in Q4 2012. Revenues were flat at €4 billion.
2013 revenues rose 2.9 percent to €14.4 billion, while fixed cost savings totaled €363 million, significantly above the €250-300 million the company had targeted.
In particular, revenues from IP routing and wireless access products stood out last year, rising over 10 percent and 11 percent respectively, thanks to increased demand for 4G LTE.
Sales in North America rose by 13.8 percent, but those in Europe continued to fall – they were down 2.9 percent.
Meanwhile, A-L said it has entered into exclusive discussions with technology investment firm China Huaxin for the acquisition of its enterprise division. The deal values A-L Enterprise at €268 million and A-L said it will retain a minority stake of 15 percent.
“We have repositioned our company as a specialist in IP and Cloud Networking, as well as in Ultra-Broadband Access, and we are seeing strong commercial traction in these segments,” commented CEO Michel Combes. “We have strengthened our balance sheet through the success of financing actions taken to reduce and reprofile our debt.”
Last November, A-L announced a new capital increase of €955 million.
At the end of 2013, the company’s net cash position was €147 million. However, the Board has recommended not to pay a dividend for the year.