Alcatel-Lucent reports rising profit on falling revenue
The company has signed a patent deal to help increase revenue
IDG News Service - Telecommunication equipment maker Alcatel-Lucent reported a profit for the fourth quarter, but revenue fell 12.9 percent year-on-year as the company continues to face a challenging market, it said on Friday.
The company reported sales of a 4.15 billion euros (US$5.37 billion), and a net profit of a 868 million euros, compared to a net profit of a 340 million euros a year earlier.
Revenue was down across Alcatel-Lucent's different divisions; the wireless division fared the worst with a 22.8 percent drop. The only exception was the enterprise division, which grew its revenue 0.3 percent.
The company also reported a full-year net profit for the first time since the merger of Alcatel and Lucent Technologies in 2006. Cost-cutting has played a big role in helping Alcatel-Lucent return to profit, and next year the company plans to cut an additional a!500 million in costs.
Like many vendors, Alcatel-Lucent hopes patent licensing will help increase its revenues. On Friday, the company announced a patent syndication deal with patent licensing company RPX, which also counts technology companies Avaya, Ericsson and Nikon among its clients. Alcatel-Lucent will still retain the ownership of its 29,000 patents -- which cover areas such as wireless, semiconductors, optical, cloud computing and network security.
But just because Alcatel-Lucent is making a profit doesn't mean the company is out of the woods. Overall, the fourth quarter last year was a tough one for the telecommunication equipment makers.
In November, Nokia Siemens Networks said it is planning to cut 17,000 jobs worldwide as it aims to cut a!1 billion from its annual costs by the end of 2013, while Ericsson's profits dropped by 66 percent year-on-year.
Alcatel-Lucent's goal for 2012 is to achieve a higher operating margin that in 2011.
Send news tips and comments to firstname.lastname@example.org
- Aberdeen Group: Marketing Analytics for Manufacturing: Forging Customer Insights There are no recalls for poor marketing. Manufacturers need to get their customer intelligence and messaging right the first time. Learn how.
- The Brave New World of Customer-Centric Manufacturing The Unique Opportunity for Manufacturers to Better Understand their Consumers
- See the Possibilities Utilizing Data Visualization Do you simply want to collect data, or do you want to derive business insights from it? What if you could quickly and...
Changing the Way Government Works: Four Technology Trends that Drive Down Costs and Increase Productivity
This paper discusses four technology-based approaches to improving processes and increasing
productivity while driving down department and agency costs.
- Cloud Knowledge Vault Learn how your organization can benefit from the scalability, flexibility, and performance that the cloud offers through the short videos and other resources...
- LIVE EVENT: 5/7, The End of Data Protection As We Know It. Introducing a Next Generation Data Protection Architecture. Traditional backup is going away, but where does this leave end-users? All IT Industry White Papers | Webcasts