Alcatel-Lucent lowered its margin outlook after the reported net income of fourth quarter missed the expectations. The Paris based maker of telecommunications gear, Alcatel-Lucent reported a net profit of euro 46 million ($63 million) in the fourth quarter of 2009, compared to a euro3.9 billion net loss in the same period last year.
The company though did not forget to tell that it had a total fourth quarter had profit of 201 million euro as it also posted a gain of 99 million euro from the sale of the motors and drives activity business. The revenue in the fourth quarter fell by 19.9% and was reported euro3.97 billion missing the expectations. The company said that shortfalls in 2G wireless access, TDM switching, terrestrial optics and broadband access mainly caused the decreased revenue.
In the fiscal 2009 Alcatel posted a net loss of euro 524 million while the expectations were of a net loss of 472 million. The company posted a revenue of euro 15.16 billion ($20.91 billion) and an adjusted loss of euro 56 million. While Analysts expected revenues of 15.68 billion and an adjusted profit of 269.7 million for fiscal 2009.
“The visibility on the market is a little bit clouded,” said Paul Tufano, Chief Financial Officer of Alcatel. “We are being prudent on opening up the range.”
Alcatel-Lucent SA lowered the outlook for its 2010 adjusted operating margin. The new outlook sees the adjusted operating margin in the range of between 1% and 5% while earlier the company was seeing a margin of around 5% for 2010.