Alcatel-Lucent's revenue slides 12.5% in Q4

French vendor sees business contract as telcos cut wireless spend
Alcatel-Lucent saw its revenues decline in 2011.
Alcatel-Lucent saw its revenues decline in 2011.


France-based telecom vendor Alcatel-Lucent saw its revenue decrease 12.5% year-over-year in Q4 2011 to EUR4.2 billion ($5.6bn). Adjusted operating income decreased by 19.8% in the fourth quarter to EUR316 million.

The vendor said that its wireless business experienced a “double digit decline” as a result of lower spending after several quarters of strong activity. Meanwhile, its software, services and solutions business decreased at a mid-single digit rate, but with high single digit growth in managed services.

Alcatel-Lucent said that the “slight growth” in submarine activity was more than offset by the decline in terrestrial optics. The vendor saw some growth in its wireline business on quarterly sequential basis, driven by all the product lines.

Alcatel-Lucent reduced its operating expenses, which decreased 12.3% year-over-year. The vendor said that the decrease was a result of its actions to improve operational efficiency.


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