Alcatel-Lucent records €72 million loss in Q115, flat year-on-year

Alcatel-Lucent today reported a net loss for Q1 2015 amounting to €72 million (US$82 million), flat from a loss of €73 million in the year-ago period.

Group revenues, excluding Managed Services, increased 12 per cent year-on year, with strong growth coming from next-generation products, which were up 25 per cent. At constant exchange rates, group revenues, excluding Managed Services and, were down two per cent while next-generation revenues were up nine per cent.

Gross margin for the period reached 34.6 per cent, expanding 230 bps year-on-year, driven notably by improved profitability across several business lines and a higher-than-usual proportion of software sales in the Access segment.

Adjusted operating income totalled €82 million for the quarter, or 2.5 per cent of revenues, compared to €33 million, or 1.1% of revenues a year earlier. Core Networking operating income was €41 million or 2.8 per cent of revenues, compared to €96 million or 7.1 per cent in the year-ago quarter, primarily reflecting reinvestments to promote future growth, a temporary softer spending environment in North America, and Japan, and variations in product mix. Access operating income was €67 million or 3.8 per cent of revenues, compared to an operating loss of €37 million, or -2.4 per cent of revenues in the year-ago quarter