Alcatel-Lucent announced their fourth quarter financials on Friday. Revenue declined, but net income rose as the company reported fixed cost savings of $34 million for the quarter.
Q4 revenue was $4.1 billion, and net income was $307 million, more than double the year-ago amount. Full-year revenue was $14.8 billion, and the company lost $134 million last year.
The company’s gross margin grew from 33.4% in the fourth quarter of 2013 to 34.7% at the end of 2014. The higher margins can be attributed to removing €675 million (about $773 million) out of its fixed costs in the first two years of its turnaround.
Alcatel-Lucent CEO Michael Combes initiated his Shift Plan to cut costs and to transform the company into an IP networking focus. Positive results of their Shift can be seen through the networking division raising its revenues by 15% at constant exchange rates.
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