Alcatel posted a steeper net loss and weaker revenues in its Q3 results released Wednesday morning, but forecast stronger sales in the current quarter and a profit next year.
The French-based telecom equipment maker's net loss more than doubled from last year's Q3 on charges for its deep job cuts and writedowns on products it can't move. The loss totalled 1.35 billion euros, or 1.14 euros per share, compared to a net loss of 558 million, or 0.49 euros per share, in last year's Q3.
Revenues fell 37 per cent to 3.51 billion euros from 5.61 billion.
Excluding restructuring charges, the company posted an operating loss of 227 million euros, compared to 215 million last year.
However, looking ahead the company is calling for improvement, suggesting it has restructured faster than expected and has reached a bottom.
For the current fourth quarter the company is forecasting a 10 per cent rise in revenues from Q3. And after posting six consecutive quarterly losses, the company expects to post a profit sometime in 2003.
"In this particularly difficult market environment, we are well on our way to establishing a foundation which will allow Alcatel to come out of this crisis financially healthy and strongly competitive,?chairman and CEO Serge Tchuruk said in a statement.
Tchuruk said operating losses for the current fiscal year "should be confined to our Optics business, currently under intensive restructuring.?
By the end of 2003, the company expects its break-even target to be reduced to 3 billion euros in quarterly revenues.
Demand for Broadband access products, especially in Europe and Asia, as well as wireless infrastructure products, are the company's strongest areas. Alcatel's business in non-carrier telecom equipment and software, one third of company sales, have also offset the weak market for telecom carrier equipment.
The French-based telecom equipment maker's net loss more than doubled from last year's Q3 on charges for its deep job cuts and writedowns on products it can't move. The loss totalled 1.35 billion euros, or 1.14 euros per share, compared to a net loss of 558 million, or 0.49 euros per share, in last year's Q3.
Revenues fell 37 per cent to 3.51 billion euros from 5.61 billion.
Excluding restructuring charges, the company posted an operating loss of 227 million euros, compared to 215 million last year.
However, looking ahead the company is calling for improvement, suggesting it has restructured faster than expected and has reached a bottom.
For the current fourth quarter the company is forecasting a 10 per cent rise in revenues from Q3. And after posting six consecutive quarterly losses, the company expects to post a profit sometime in 2003.
"In this particularly difficult market environment, we are well on our way to establishing a foundation which will allow Alcatel to come out of this crisis financially healthy and strongly competitive,?chairman and CEO Serge Tchuruk said in a statement.
Tchuruk said operating losses for the current fiscal year "should be confined to our Optics business, currently under intensive restructuring.?
By the end of 2003, the company expects its break-even target to be reduced to 3 billion euros in quarterly revenues.
Demand for Broadband access products, especially in Europe and Asia, as well as wireless infrastructure products, are the company's strongest areas. Alcatel's business in non-carrier telecom equipment and software, one third of company sales, have also offset the weak market for telecom carrier equipment.
