NEW YORK ( TheStreet) -- Alcatel Lucent (ALU - Get Report) shares rose following a better-than-expected earnings report and on news that Qualcomm (QCOM - Get Report) would be investing in a joint venture to enhance wireless connectivity in both residential and enterprise environments.
The Paris-based company on Tuesday said it lost €885 million during the quarter, as impairment and restructuring charges weighed on earnings. For the quarter, Alcatel-Lucent had sales of €3.61 billion, which were better than expected. "Alcatel-Lucent reported Q2 results that were better than expected on the back of very strong North American results," said Jefferies analyst George Notter in a research note following the results.
New CEO Michel Combes has announced a plan to return the company to cut costs, having announced a plan to save €1 billion in costs, and sell €1 billion or more in assets from 2013 to 2015, as part of "The Shift" plan unveiled last month.
Part of that plan is the announcement between Qualcomm and Alcatel, as the companies develop the next generation of Alcatel-Lucent's lightRadi Small Cell products, using Qualcomm chips."This initiative perfectly illustrates The Shift Plan we announced last month, which will see Alcatel-Lucent focus on growth technologies, including those facilitating ultra-broadband access," Combes said in the press release, discussing the deal. "We also said we would actively seek collaboration with key industry players. In working together with Qualcomm Technologies -- a world leader in advanced wireless platform solutions such as its small cell chipsets -- Alcatel-Lucent will continue to be positioned at the forefront of innovation in the small cells market." Shares of Alcatel-Lucent were higher in premarket trading Tuesday, up 8.2% to $2.38, while Qualcomm shares tacked on 0.6% to trade at $64.62. -- Written by Chris Ciaccia in New York >Contact by Email. Follow @Chris_Ciaccia George C. Notter We expect to have additional commentary following the formal EPS call later today.