Alcatel-Lucent recorded revenue up 15 percent and up 4 percent at constant exchange rates to EUR 4.16 billion in Q4 2015, versus EUR 3.68 billion in Q4 2014. Gross profit rose to EUR 1.64 billion from EUR 1.28 billion. The company saw a 36 percent rise in next-generation technology revenue in Q4 2015, accounting for 79 percent of total revenue, versus 67 percent in Q4 2014.
Alcatel-Lucent increased its operating margin to 13.5 percent, compared to 7.7 percent in Q4 2014, a result it attributes to its 2013 strategic plan Shift. The company nearly doubled its adjusted operating profit to EUR 560 million, reflecting the improvement in gross margin and lower operating expenses. Q4 2015 net profit came in at EUR 589 million, but over the full year the company made a lower net profit, EUR 257 million, compared with a EUR 118 million net loss in 2014.
It was Alcatel-Lucent’s first full year profit since 2011, giving it healthy finances for its new parent company, Nokia. Excluding managed services, full-year revenue rose by 8 percent (4% at constant exchange rates) to EUR 14.28 billion, versus EUR 13.18 billion. The business also stopped burning cash, ending the year with EUR 660 million of cash flow. Over EUR 1 billion of cost cuts were made and nearly 10,000 employees lost their jobs under the Shift plan.
