Facing a spending slowdown by U.S. carriers, Paris-based telco supplier Alcatel-Lucent on Friday reiterated its plan to cut costs and boost profitability by the end of 2015.
Commenting on the early morning release of Alcatel-Lucent’s fourth-quarter and full year 2014 financial results, CEO Michel Combes expressed confidence that the company would achieve positive free cash flow this year, a central goal of the turnaround plan launched in mid-2013.
Fourth quarter revenues dropped 6 percent to €3.68 billion, in line with expectations. But cost-of-sale reductions brought AlcaLu’s gross profits to €1.28 billion for the the quarter ending in December, up from €1.26 billion same period year prior.
AlcaLu’s losses totaled €83 million for the full year of 2014, a marked improvement from losses of €1.29 billion year prior.
“Our fourth quarter and full year 2014 results underline the success of our turnaround,” Combes said in a statement.
Formed by a merger in 2006, AlcaLu faces a marked slowdown in U.S. carrier spending, with the transition to LTE complete and major carriers turning their investment focus toward software solutions.
Alcatel-Lucent shares were up slightly in midday trading Friday.