Alcatel-Lucent grew its Q1 revenue by 12% year-on-year to €3.23 billion ($3.65 billion), but still only managed to slightly narrow its losses for the period.
The company reported a net loss of €72 million, down from €73 million a year earlier. Adjusted operating income increased to €82 million, or 2.5% of revenues.
Core networking revenues increased 7% year-on-year to €1.45 million, but declined 3% in constant currencies. Next-generation products drove growth for the quarter, with revenue from the segment climbing 25%.
Access segment revenues meanwhile improved 13% year-on-year in actual rates to €1.78 billion, but would have fallen 2% at constant rates. Alcatel-Lucent's LTE contract win with China Telecom helped drive wireless access revenues up 19% to €1.18 billion.
“Our first quarter 2015 results reflect not only strong growth in our next-generation products, but also the diligent efforts we have made to turn Alcatel-Lucent around and build a more resilient organization,” Alcatel-Lucent CEO Michel Combes commented.
“Execution of the Shift Plan is and will continue to be our top priority, underlined by our commitment to reach our positive free cash flow target in 2015. These results help pave the way for successful execution of our goals as we prepare for our combination with Nokia.”
Alcatel-Lucent's board recently signed off on Nokia's proposal to acquire Alcatel-Lucent in a share swap deal worth €15.6 billion. The deal still requires shareholder and regulatory approval.