Alcatel-Lucent CEO Michel Combes said that the vendor is "back in the game" in terms of competing with its top rivals and that the company is looking, like other gear makers, for non-carriers customers. After skirting with financial disaster and undergoing a massive restructuring, Combes seemed to be brimming with confidence about Alcatel-Lucent's prospects.
Alcatel-Lucent has finalized the sale of its cybersecurity and security services business to Thales for an undisclosed amount, another move in its effort to shed non-core assets.
Alcatel-Lucent reported a narrower net loss for the third quarter and an improved margin as cost cuts and a slower cash burn offset falling sales. However, in the company's crucial U.S. market, sales continued to fall in the period.
Alcatel-Lucent appeared to address investors' concerns that its U.S. operation is too heavily reliant on large operators, with a deal to deploy an LTE overlay network for second-tier operator Pioneer Cellular.
Alcatel-Lucent's CEO said the company remains on track to reach its goal of becoming free cash flow positive by next year. And he said the company will be able to persist against its larger rivals like Ericsson and Huawei.
Alcatel-Lucent capped off the second quarter of 2014 with a narrower loss. Yet sales in the United States fell and investors have grown worried that the company's reliance on large contracts from U.S. carriers could hurt it if network activity drops.
Alcatel-Lucent has launched a $1.4 billion offer in convertible bonds, which will be used to pay off the $1.75 billion on the company's senior secured credit facility in the U.S. as part of its Shift Plan.
The CEOs of Orange and Alcatel-Lucent continue to call for greater consolidation on the French market--a move they say would provide a more level playing field for the market's mobile operators.
Alcatel-Lucent is in talks to sell its cybersecurity unit to Thales as part of what it says is a broader partnership to address network security opportunities.
Alcatel-Lucent sharply cut its losses in the first quarter and its adjusted operating income beat analyst expectations, but sales dipped year-over-year in the United States, its largest market by far.