With the help of an uptick in the revenue, the network and equipment company Alcatel Lucent SA (ADR) (NYSE:ALU) managed to narrow the loss which they were about to experience in their quarterly report. This has been done with the help of slashing various jobs and also considering sale of assets.
In the quarterly report, it was stated that the company experienced a net loss of 200 million Euros or 9 cents per share. This was compared with the last year’s report in which the company experienced a loss of 316 million Euros or 14 cents per share.
Boost in the sales with the help of IP routing and wireless divisions helped the company to get an adjusted operating profit of around 116 million Euros which is compared with a loss of 126 million Euros during the last year. Moreover, the free cash flow also decreased to 218 million Euros which was compared to 366 million Euros loss in the last year.
The Chief Executive Officer of Alcatel Lucent SA (ADR) Michel Combes , is trying to push the company back into the field of successful business by slashing jobs and also refocusing the former activity of one stop shop for the telecom equipment to a specialist or expert in some of the profitable areas.
The company is facing huge losses since the year 2006, after the collaboration of France’s Alcatel and former AT & T equipment arm called Lucent Technologies.
The Chief Executive Officer of the company is planning to cut 15% of the company’s headcount or around 10,000 jobs and closing down of the office. Moreover, they are planning to move the head quarters near to the Eiffel Tower. Also Alcatel Lucent SA (ADR) are pursuing and planning to sell off their assets which are around 1 billion Euros in order to repay the emergency loans.
