Alcatel Lucent CEO: 'Quarterly Results Of Nokia And Alcatel Lucent Won't Affect The Terms Of Our Deal'

Alcatel Lucent SA (ADR) ALU reported its first-quarter earnings earlier on Thursday. Although adjusted operating profit for the company doubled to EUR82 million, it’s quarterly EPS loss remained nearly same year-over-year at EUR0.03.

Michel Combes, CEO of Alcatel-Lucent, was on CNBC post the results to weigh in on the earnings.

U.S. Slowdown

“In terms of spending pattern there is a clearly slowdown in the U.S., which we see more as a [conjectural] rather than structural,” Combes said. “Which means we expect sales to regain traction in the U.S. second-half and when you look at the other regions in the world, mainly [EA] and APAC, we see quite nice strong growth profile in those two regions.”

Skills Matter

“So, I would certainly say [….sales at….global…] are picking up. Of course in the industry in which we are facing the transition to 5G, which is the next big generation in terms of technology, skills matter in order to [support the level] of investment, which will have to be done.”

He continued, “Just to remind you with the fact that combined Alcatel-Lucent and Nokia will represent more than around 5 billion Euros spend in R&D, which will allow the new group to really cope with this technology acceleration.”

Terms Of The Nokia Deal

On Nokia’s share price and quarterly results of the companies affecting the terms of the deal, Combes said, “We have reiterated all our commitments as far as chief plan is concerned. So, free cash-flow positive by the end of the year and Nokia has reiterated its guidance in terms of operating profit for its network division and based on that, let’s say we have agreed on this combination, which is very strong and [intentional] move."

“So, I would say the quarter doesn’t make a [trend] and so let’s say that quarterly results of Nokia and Alcatel Lucent don’t change towards the rational of this transaction and the terms of this transaction,” Combes concluded.