Alcatel-Lucent CEO Steers Firm To A Lower Loss - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Mobile // Mobile Business

Alcatel-Lucent CEO Steers Firm To A Lower Loss

New chief Ben Verwaayen's firm reported a loss of $51.8 million for its third quarter on a 6.6% drop in sales of $5.15 billion.

It isn't often that a chief executive will be hailed when his company loses $52 million, but that's exactly what happened when Alcatel-Lucent's new chief Ben Verwaayen announced a $52 million loss this week.

The combo U.S.-French company reported a loss of $51.8 million for its third quarter on a 6.6% drop in sales of $5.15 billion and, because the loss was so much less than last year's $437 million, Verwaayen was praised by investment banking analysts and Alcatel-Lucent stock jumped in early trading.

Verwaayen, a former BT Group chief, took over the reins at Alcatel-Lucent in September and immediately seemed to calm employees and investors. The veteran telecommunications executive gave out his e-mail address to employees and indicated he has read the "truckloads of e-mail" he has received.

The company cited strong performance in its W-CDMA infrastructure as well as in its submarine networks. However, its CDMA business has been declining along with reduced customer spending in fixed access and terrestrial optics technology.

"We met our revenue guidance in a more challenging macroeconomic environment," Verwaayen said in a statement Thursday. "Having said that, our profitability remains unsatisfactory. The gross margin came in at the lower end of our expectations in the third quarter, reflecting an adverse shift in both our product and geographic mixes."

Verwaayen was named to head the company last September after Alcatel-Lucent lost its previous top executives, CEO Patricia Russo and Chairman Serge Tchuruk.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Commentary
Study Proposes 5 Primary Traits of Innovation Leaders
Joao-Pierre S. Ruth, Senior Writer,  11/8/2019
Slideshows
Top-Paying U.S. Cities for Data Scientists and Data Analysts
Cynthia Harvey, Freelance Journalist, InformationWeek,  11/5/2019
Slideshows
10 Strategic Technology Trends for 2020
Jessica Davis, Senior Editor, Enterprise Apps,  11/1/2019
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
Getting Started With Emerging Technologies
Looking to help your enterprise IT team ease the stress of putting new/emerging technologies such as AI, machine learning and IoT to work for their organizations? There are a few ways to get off on the right foot. In this report we share some expert advice on how to approach some of these seemingly daunting tech challenges.
Slideshows
Flash Poll