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Alcatel-Lucent (ALU) Tightens Q2 Loss; Will Explore IPO of ASN Subsidiary

July 31, 2014 6:55 AM EDT

Alcatel-Lucent (NYSE: ALU) reported Q2 EPS of (€0.11), versus (€0.37) reported last year. Revenue for the quarter came in at €3.28 billion, versus €3.44 billion reported last year.

Analysts were looking for revs of €3.3 billion, according to Bloomberg.

Alcatel-Lucent also also announced today our intent to explore the capital opening of our subsidiary Alcatel-Lucent Submarine Networks (ASN) through an IPO, in order to finance the reinforcement of its leadership in telecom submarine systems and its diversification into the Oil & Gas market, to increase its visibility and to optimize capital allocation. Alcatel-Lucent will retain the majority of the ownership. Subject to market conditions, this capital opening is targeted to take place in the first half of 2015.

Commenting on the second quarter results, Michel Combes, CEO of Alcatel-Lucent, said: “I am proud of the very significant improvement achieved in the second quarter which demonstrates the fourth consecutive quarter of consistent delivery under the Shift Plan. With the upcoming reimbursement of the secured loan and the subsequent recovery of the full ownership of its patents, Alcatel-Lucent recaptures the full control of its destiny and can close the first step of its transformation. The Group can now embark on the second chapter of its turnaround story: innovate, transform and grow while keeping intact the commitment of returning to positive free cash flow in 2015.”

For earnings history and earnings-related data on Alcatel-Lucent (ALU) click here.



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