Alcatel-Lucent prepares to complete Nokia merger, names interim management team as Combes departs

Alcatel-Lucent (NYSE: ALU) is moving ahead with its merger with Nokia, announcing that CEO Michel Combes will be leaving the company on Sept. 1.

Philippe Camus, who is currently chairman of Alcatel-Lucent's board, will become the interim CEO. The vendor said that COO Philippe Guillemot will be in charge of leading the operational management of the group, and CFO Jean Raby, who will be responsible for completing the proposed transaction with Nokia, said he will be "departing the group presumably" once the deal closes.

Meanwhile, the vendor reported that the Core Networking segment saw positive results in the second-quarter 2015.

Driven by gains in IP routing, IP transport and IP platforms, Alcatel-Lucent's Core Networking segment revenues were $1.82 billion, up 22 percent year-over-year. The unit's adjusted operating income totaled $167 million, or 9.1 percent of segment revenues in, compared to $134 million or 9 of revenues in the same period a year ago. Core Networking segment operating cash flow was $203 million in the quarter, an increase of $97 million compared to second-quarter 2014.

IP Routing revenues were $718 million in Q2 2015, up 17 percent over the second quarter 2014. Alcatel-Lucent said the business saw double-digit growth in EMEA (Europe, the Middle East and Asia) and CALA (Caribbean and Latin America), resilience in North America and declines in Asia--driven by a continued spending pause in Japan.

The company's IP transport revenues were $687 million in Q2 2015, up 30 percent compared to the year-ago quarter. In particular, terrestrial optics revenues showed strong double-digit growth at constant rates, as WDM witnessed strength in EMEA, CALA and Asia Pacific. What's more the vendor reported that they experienced a cyclical upswing continued in its submarine business, with revenues growing more than 40 percent at constant rates and its pipeline grew with new awards and contracts signed.

From an overall financial perspective, Alcatel-Lucent reported that revenue rose to $3.79 billion. Alcatel-Lucent's net loss narrowed to $59 million in the quarter from $325 million a year earlier.

Shares of Alcatel-Lucent were listed at $3.71, up 16 cents, or 4.51 percent in Thursday morning trading on the New York Stock Exchange.

For more:
- see this earnings release
- see this separate release
- see this Bloomberg article
- here's FierceWireless' take

Special report: Wireline telecom earnings in the second quarter of 2015

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