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Alcatel-Lucent shares soar on earnings, patent news

Shares of Alcatel-Lucent (NYSE: ALU) closed almost 13% higher on Wall Street after the company announced a profitable 2011 and a plan to monetize its patent portfolio. The French telecom equipment giant said profit for all of last year was 1.1 billion euros ($1.5 billion), its first annual profit in six years. The company also said operating margins will improve in the coming year.

ALcatel-Lucent said fourth quarter sales were off 13% from last year, to 4.15 billion euros ($5.5 billion). Meanwhile fourth quarter net income rose more than 100% to 868 million euros ($1.1 billion), but much of this gain came from non-recurring items.

Alcatel-Lucent has almost 30,000 patents related to wireless and wireline technology, and investors are applauding the company’s decision to license some of these assets. Chief Financial Officer Paul Tufano said patent licenses could generate several hundred million euros this year.

Alcatel-Lucent CEO Ben Verwaayen told analysts today that he wants to make it clear that his company is not selling patents. “We have a position in the telecom market for which it is very important that we have the strongest portfolio and patents in the industry,” he said. “29,000 patents that we have is not just an illustration of a strong past. It is, at the same token, a great basis for a great future.”

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ABOUT AUTHOR

Martha DeGrasse
Martha DeGrassehttp://www.nbreports.com
Martha DeGrasse is the publisher of Network Builder Reports (nbreports.com). At RCR, Martha authored more than 20 in-depth feature reports and more than 2,400 news articles. She also created the Mobile Minute and the 5 Things to Know Today series. Prior to joining RCR Wireless News, Martha produced business and technology news for CNN and Dow Jones in New York and managed the online editorial group at Hoover’s Online before taking a number of years off to be at home when her children were young. Martha is the board president of Austin's Trinity Center and is a member of the Women's Wireless Leadership Forum.