PARIS--Network-equipment company Alcatel-Lucent SA on Thursday
reported another first-quarter net loss but said profit margins
rose, highlighting the promise and the peril Nokia Corp. faces as
part of is EUR15.6 billion ($17.7 billion) takeover bid of the
Franco-American firm.
The Paris-based maker of wireless network gear and
Internet-routing equipment posted a net loss of EUR72 million, or 3
cents a share, for the first three months of the year, compared
with a loss of EUR73 million, or 3 cents a share, in the same
period last year.
Alcatel-Lucent's adjusted operating income more than doubled to
EUR88 million, compared with EUR33 million a year ago, roughly in
line with analysts" expectations, as the company improved its gross
margin to 34.6% from 32.3% a year earlier.
Revenue rose 9.2% to EUR3.24 billion for the quarter, but fell
4% after accounting for the impact of the strengthening
dollar--dragged down by slowing sales in the U.S. market, home to
two of its biggest clients, Verizon Communications Inc. and
AT&T Inc.
Alcatel-Lucent continued to burn cash, reporting a EUR332
million free cash flow loss in the first quarter, compared to a
free cash flow loss of EUR398 million a year earlier. But Chief
Executive Michel Combes reiterated his commitment that
Alcatel-Lucent will to show its first-ever full year of positive
free cash flow in 2015.
"In a challenging environment and in particular a slow spending
environment in North America, Alcatel-Lucent was able to increase
its margin," Mr. Combes said on a conference call with
journalists.
Write to Sam Schechner at sam.schechner@wsj.com
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