Alcatel-Lucent reported higher sales but a net loss for the fourth quarter due to a big writedown in its CDMA and IP multimedia services businesses.

The company said revenue rose 18% to €5.2 billion on the back of strong performance at several of its major business units. But despite the stronger sales the company saw its net profit plunge into the red to the tune of €2.6 billion. This was largely due to the €2.5 billion writedown.

Its wireline and wireless carrier business was strong and revenues were €3.7 billion in the quarter against €3.2 billion during the same period a year earlier. The company benefited from strong growth in carrier-type optical networking, and the GSM and WCDMA (Wideband CDMA) sectors. Broadband access revenue fell on the back of a decline in the number of DSL lines delivered.

Revenues were up 27% in the services business to €1 billion after the company won large network operations contracts and worked on IPTV and IP network integration projects. Its enterprise business segment saw revenues of €435 million, up about 4%, thanks to strong momentum in Europe and Asia.

The report came with bad news for investors. The company suspended its dividend payment for 2007 "in the light of these results and or a more uncertain market outlook," it said.

The IDG News Service is a Network World affiliate.