Telecom equipment maker Alcatel-Lucent on Thursday reported a net loss of 1.3 billion euros ($1.76 billion) for 2013 largely impacted by a writedown on its mobile business and restructuring costs.

Revenue in the fourth quarter was flat at 3.93 billion euros, but the gross margin improved amid aggressive cost cutting to reach 34 percent, leading to net income of 134 million euros.

The company also announced on Thursday that it was in talks to sell 75 percent of its enterprise business, which sells communications products and services to corporations, to investment fund China Huaxin.

The potential transaction prices Alcatel-Lucent Enterprise at 268 million euros on an enterprise value basis.

Alcatel Chief Executive Michel Combes, who took over in April 2013, has pledged 1 billion euros in asset sales through 2015. He has lifted investor hopes and led the stock to quadruple last year.

Revenue in the fourth quarter was flat at 3.93 billion euros, but the gross margin improved amid aggressive cost cutting to reach 34 percent, leading to net income of 134 million euros.

Analysts had on average forecast fourth-quarter sales of 4.16 billion euros, a gross margin of 32 percent, and an adjusted net loss of 31.5 million, according to Thomson One data.

The network-equipment maker said that it is in exclusive talks to sell its enterprise phone unit to investment company China Huaxin.

It said that China Huaxin made a binding offer to buy a majority stake in the unit for an enterprise value of €268 million ($362 million).

Under the proposed deal , Alcatel would retain a 15% stake in the unit, which makes phone systems and other equipment for businesses.

Alcatel said it expects to sign the deal by the second quarter and aims to close it in the third quarter, pending regulatory approval. China Huaxin is Alcatel's minority partner for Alcatel-Lucent Shanghai Bell, its unit in China, the company said.