Tomahawk, WI 02/10/2014 (BasicsMedia) – Investors would have been hoping that Alcatel Lucent SA (ADR) (NYSE:ALU) is firmly on the road to revival. At least, this is what ALU has been talking about for quite some time now. It has been issuing statements indicating the things that it was doing right, and reassuring investors that it is not long before they can start enjoying their investments in this global brand. However, a look at its latest financial results indicates that the company is not doing as well as it wants investors to believe. It has just posted losses, yet again, during its latest quarterly financial results.

Alcatel Lucent SA (ADR) (NYSE:ALU) remains one of the world’s premier providers of telecommunications equipment. The company says that its losses are in part due to the restructuring process that is still ongoing in many of its global operations. The company also says that its current losses are the result of flat sales, and in some cases falling sales, in much of the world. This latest development, has forced Alcatel to rethink its business operations. The result of this process of rethinking is that the company intends to sell its division that deals with corporate clients to a major Chinese firm.

Alcatel Lucent SA (ADR) (NYSE:ALU) is looking at ways in which it will dispose off its corporate clients’ division to China Huaxin. It hopes to conclude this deal upon receiving not less than $362 million from China Huaxin. The business that deals with corporate clients is the employer of close to 3,000 individuals, and depending on what it agrees with China Huaxin, the new employer could opt to retain or relieve them of their duties. The latest losses as reported by Alcatel are simply a continuation of what the company has reported every year since 2006, when it was created.

Although Alcatel Lucent SA (ADR) (NYSE:ALU)’s current loss of €1.3 billion is much lower than the net loss of €2 billion it reported for the 2012 financial year, this does not make it any easier to take. Alcatel will have to find ways of reducing the losses, and becoming a company known for profits more than anything else. Without profits it becomes more difficult to assure investors that they will receive dividends or goo0d return on investments. If the company continues along the same path, it will soon reach a point where no investor will be ready to throw money into a loss-making entity such as Alcatel.

According to the company’s CEO, Michel Combes, Alcatel Lucent SA (ADR) (NYSE:ALU) is on course to achieving its goals regarding revenue and cash flow by 2015. As for the not-so-little matter of profits, the company’s CEO has not issued any statement regarding when it expects to achieve this goal. An increase in revenue and cash flow would be good for the short-term, but the fact that the company has never reported profits since 2006, means that equal emphasis should be laid on the issue turning Alcatel into a profit-making entity, thus increasing its attractiveness to investors.

If Alcatel Lucent SA (ADR) (NYSE:ALU) decides to go on an asset-selling spree, it may soon run out of business and lose its market share as a telecommunications equipment company of international repute.

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