Alcatel-Lucent said that revenues in the first quarter of 2015 rose to EUR 3.235 billion from EUR 2.963 billion a year earlier. Adjusted operating income totalled EUR 82 million in the quarter, or 2.5 percent of revenues, up from EUR 33 million a year earlier, or 1.1 percent of revenues. The net loss was little changed at EUR 72 million, or a EUR 0.03 loss per share, compared with a net loss of EUR 73 million in the year-ago period. CEO Michel Combes said the results pave the way for the successful execution of its goals as it prepares for its combination with Nokia.
Execution of its Shift Plan to save EUR 950 million in fixed cost savings will continue to be its priority, and it maintains its positive free cash flow target in 2015. Free cash flow was a negative EUR 332 million in the first quarter but this was an improvement of EUR 66 million year-over-year.
It said that despite a softer spending environment in North America, first quarter revenues excluding Managed Services, where it has been exiting unprofitable contracts, and at constant perimeter, increased 12 percent year-on year. There was strong growth coming from next-generation products, which were up 25 percent. At constant exchange rates, group revenues excluding Managed Services and at constant perimeter are down 2 percent, while next-generation revenues are up 9 percent.
Core Networking revenues rose 7 percent to EUR 1.450 billion in the first quarter, but down 3 percent at constant rates. Core Networking operating income was EUR 41 million, down from EUR 96 million a year earlier, primarily reflecting reinvestments to promote future growth and variations in product mix.
Access revenues were EUR 1.782 million in the first quarter, up 13 percent year-over-year at actual rates but down 2 percent at constant rates. Excluding Managed Services, Access segment revenues increased 16 percent year-over-year at actual rates and were flat at constant rates. Access operating income was EUR 67 million, compared with an operating loss of EUR 37 million a year ago, reflecting continuing strong contribution from Fixed Access and progress in Wireless and Managed Services.
