French telecommunication company Alcatel-Lucent reported a profit of $63.2 million or € 46 million during the fourth quarter compared to a loss of € 3.91 million for the last year comparable period, helped by lower expenses along with the strong cost control measures and one-time items, despite 19.9% fall in the revenue on the Year-on- Year basis.

Company reported an increase in the free cash flow during the quarter to €173 million from € 157 million which demonstrate its ability to generate cash through a more disciplined management of its working capital.

According to the Mr. Verwaayen, CEO of Alcatel-Lucent, the company is on the path of recovery for the past three years. The restructing would be completed by 2011 as company has trimmed its outlook and is making plans for improving the profitability. He also stated that company is well positioned to take the advantage of the stable economic environment and the rapid growth of the mobile internet market because of its trusted position among customers migrating towards IP and LTE.

For 2010, Alcatel-Lucent expect nominal growth, defined as between 0% and 5%, for the telecommunications equipment and related services markets and company expects to reach from low to mid operating margin.