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Alcatel-Lucent Surges on Q4 Results (ALU)

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Alcatel Lucent SAAlcatel-Lucent (ADR) (NYSE: ALU) shares are surging in trading today after the France-based company announced its fourth-quarter financial results.

Alcatel rose to an intra-day high of $2.26 in trading today, and at last check, it was up 12.89% to $2.19 on above average volume of 115.38 million.


Alcatel-Lucent, which is engaged in mobile, fixed, Internet Protocol (IP) and optics technologies, applications and services, today, reported fourth-quarter revenue of 4.25 billion euros, up 12% on a sequential basis. On a constant currency basis, the company’s revenue for the quarter rose 9.5% sequentially.

Alcatel-Lucent’s adjusted operating income for the quarter was 316 million euros. The company’s gross margin for the quarter was 35.6%, compared with 36.3% reported in the third quarter of 2011. The sequential decline in gross margin was mainly due to geographical and product mix.

The company’s net income for the quarter was 868 million euros.

For full year 2011, Alcatel-Lucent reported revenue of 15.69 billion euros, up 1.9% from 2010. The company’s adjusted gross profit for the full year was 5.64 billion euros, while adjusted operating income was 610 million euros.

Net income for 2011 was 1.095 billion euros.

Ben Verwaayen, CEO of Alcatel-Lucent, said that he is pleased by the responsiveness of the company to adapt to a changing business environment, which resulted in a significant improvement in free-cash-flow and an acceleration of cost-reduction actions.

Verwaayen said that overall, 2011 was a second year of improvements in the company’s results, and leads to the first positive full-year net results for the company since the merger. He added that the company has strengthened its financial flexibility with the Genesys divestment, while taking the strategic decision to realize the full value of its existing and future patent portfolio.

Verwaayen said that the company’s aim in 2012 is to achieve an adjusted operating margin higher than the level reached in 2011.

 

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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