Alcatel-Lucent: Back to Revenue Growth and Positive net Profit

By Alcatel-lucent, PRNE
Wednesday, November 3, 2010

Rising Demand for New Technologies in all Geographies

PARIS, November 4, 2010 - Year

Key Numbers for the Third Quarter 2010

    - Revenues of Euro 4.074 billion, up 10.5% year-over-year, up 6.8%
    - Adjusted2 gross profit of Euro 1.377 billion or 33.8% of revenues
    - Adjusted2 operating income1 of Euro 61 million or 1.5% of revenues
    - Operating cash flow3 of Euro 193 million
    - Net (debt)/cash of Euro (190) million as of September 30, 2010

Executive Commentary

Ben Verwaayen, CEO, commented:

"I am pleased with the good progress made in our
transformation journey, highlighted with healthy sales and improved
profitability this quarter. Our solutions are recording strong traction with
our customers as evidenced by a book to bill ratio up from the year ago
period, and a growing share of our next generation product sales. From a
geographic standpoint, on top of the established strong dynamic in North
, we experienced good growth in India, China and Russia fuelled by our
recent contracts wins and better market conditions. We improved our overall
profitability sequentially and year over year even though our product and
geographic mix was less favourable than in the second quarter of 2010."

He added:

"Operational excellence and reduced organizational complexity
remain our key focus in order to better convert top line momentum into profit
and cash-flow.

Driven by the strong momentum of our product portfolio, we
anticipate a significant sequential increase in our top line in the fourth
quarter. This, combined with our actions on costs, will lead to a strong
leverage effect at the operating profit level. We maintain our full year

To read the full press release please visit

Alcatel-Lucent will host a press and analyst conference at its
headquarters at 1:00 p.m. CET which can be followed through audio webcast at

Peter Benedict Tel: +33-(0)1-40-76-50-84 peter.benedict at

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