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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