Alcatel-Lucent widens loss as revenue falls

Dylan Bushell-Embling
02 Aug 2010

Alcatel-Lucent has maintained its full-year earnings expectations despite recording a wider-than-expected loss in the second quarter.

The European-US vendor reported a net loss of €184 million ($240m), versus a profit of €14 million the year before.

While analysts had already predicted a loss, they had it pegged at just €146.2 million, according to the averages from a Bloombergpoll.

The company reported revenue of €3.81 billion, a 2.4% fall on 2Q09, with sales of fixed access, switching and optical gear only “partially offset” by growth in IP and W-CDMA sales.

The services business – a key growth area for vendors facing a long-term decline in equipment sales – contracted at a “mid single digit rate,” while Asia Pacific revenue fell in double digits because of a slowdown in China buildouts.

Gross profit at €1.38 billion was around 36% of revenues, compared to 33.1% a year and 32.6% in Q1.

Related content

No Comments Yet! Be the first to share what you think!
This website uses cookies
This provides customers with a personalized experience and increases the efficiency of visiting the site, allowing us to provide the most efficient service. By using the website and accepting the terms of the policy, you consent to the use of cookies in accordance with the terms of this policy.