Alcatel-Lucent delivers full-year 2011 results in line with guidance, strong Q4 2011 cash-flow generation and well positioned for a better year in 2012.

Free cash-flow of € 541 million in Q4 2011
Significant sequential improvement to cash and costs position
Higher margin and strong positive net cash position targeted for 2012
Strategic decision to leverage the strength of Alcatel-Lucent’s patent portfolio

Key numbers for the fourth quarter 2011
Revenues of Euro 4,256 million, up 9.5% sequentially and down 11.2% year-over-year at constant currency
Adjusted gross profit of Euro 1,514 million or 35.6% of revenues
Adjusted operating income of Euro 316 million or 7.4% of revenues
Published net profit of Euro 868 million or Euro 0.29 per share

Key numbers for the year 2011
Revenues of Euro 15,696 million, up 1.9% year-over-year at constant currency
Adjusted gross profit of Euro 5,646 million or 36.0% of revenues
Adjusted operating income of Euro 610 million or 3.9% of revenues
Published net profit of Euro 1,095 million or Euro 0.42 per share

All figures in this document include the Genesys business in order to provide meaningful comparable information, except the mentioned Published figures; all Published figures report Genesys in discontinued operations. In addition to the Published results and consistent with previous publications, Alcatel-Lucent is providing adjusted results which exclude the main non-cash impacts from PPA entries in relation to the Lucent business combination and report Genesys as continued operations. Operating cash-flow is defined as cash-flow after changes in working capital and before interest/tax paid, restructuring and pension & OPEB cash outlay.

Alcatel-Lucent (NYSE: ALU)