Struggling vendor Alcatel-Lucent reported another loss-making quarter despite seeing a second successive uptick in revenues.

For the second quarter of the year, the France-based company made a loss of €885 million despite making fixed cost savings of €120 million.

Net debt more than doubled from the end of the first quarter to €794 million, meanwhile.

A-L said “successful action” has been taken to re-profile the debt but it remains “open to take advantage of further debt market opportunities”.

The company is undergoing its latest turnaround plan, announced last month and dubbed the Shift Plan, which includes cutting €1 billion in costs and switching its focus to its IP networking and mobile broadband units.

New CEO Michel Combes commented: “We are at the beginning of our journey towards 2015 and cash remains a challenge. Looking ahead, our clear focus will be maintaining a strict and disciplined approach to implementing The Shift Plan across all of its industrial, operational and financial dimensions.”

At least A-L was able to report a revenue rise of 1.9 percent year-on-year to €3.6 billion.

Much of this was due to a 21 percent increase in IP revenues, which helped push its principal networks and platforms business unit up by 5.9 percent overall.

A-L said growth here was being driven by sales of edge routers and carrier ethernet switches in particular.

Sales of its Advanced Communications (IMS), Subscriber Data Management, Motive Customer Experience and Payment & Charging solutions were also doing well thanks to the introduction of services such as VoLTE.

However, sales from its combined enterprise and submarine businesses were down 18.7 percent, while managed services revenues fell by 14.7 percent.

From a geographical perspective, revenues in North America rose by over 17 percent as sales in Europe fell by seven percent.

The vendor also announced a tie-up with Qualcomm, which sees a joint collaboration around small cells plus the US-based company taking a small stake – understood to be less than five percent – in A-L.

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