Alcatel-Lucent reported Q4 2007 revenue of Euro 5.23 billion, up 20% sequentially and 18% year-over-year. Adjusted operating income was Euro 303 million or 5.8 % of revenues. There was a reported net loss (group share) of Euro (2.58) billion or Euro (1.14) per diluted share, including an impairment charge of Euro (2.52) billion.
For the full year 2007, Alcatel-Lucent recorded revenues of Euro 17.79 billion, down 2.5% at current rate, up 2.1% at constant rate.
Patricia Russo, CEO commented: "As we have said, 2007 was a transition year for the company as we executed our integration plans in a difficult market environment. Notwithstanding these challenges, the performance of our wireline, enterprise and services business has been solid. On the other hand, the slower-than-expected ramp up of revenues in WCDMA and NGN/IMS, two areas in which we have been investing, has severely impacted profitability...
"While the long term prospects of our industry remain good, the macroeconomic environment has created uncertainty in our markets in the last few months. Our initial projections for 2008 indicate that the global Telecommunications equipment and related services market should be flat to slightly up at constant EUR/USD rate and slightly down at current rate."
Some highlights:
- The Carrier business segment recorded a strong double-digit growth, up 16.2% year-over-year at current exchange rate, driven by wireline and wireless. Wireline revenues wereEuro 1,691million compared to a pro-forma3 Euro 1,470 million a year-ago, an increase of 15%.
Broadband access revenues were down year-over-year in the fourth quarter, as the decline in DSL lines (-5% to 8.3 million) was not yet fully compensated by the ramp-up in G-PON. For 2007, 33.3 million DSL lines were delivered, up 8%.
Revenues for the wireless business segment were Euro 1,570million compared to a pro-forma Euro 1,249 million in the year-ago quarter, an increase of 26%, driven primarily by higher sales in GSM and WCDMA. - The Services business segment also registered a strong 27.0% growth.
- The Enterprise business segment was up 3.8%.
