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Sun 13 May 2007 04:00 AM

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Alcatel-Lucent posts 1Q07 figures

Newly merged telecommunications vendor Alcatel-Lucent posted an operational loss of US$330 million during the opening quarter of 2007.

Newly merged telecommunications vendor Alcatel-Lucent posted an operational loss of US$330 million during the opening quarter of 2007.

However, the company reported that a net income for the period was US$269 million after tax and one-off items. Alcatel-Lucent attributes the figures to the costs associated with its company’s US$11.6 billion merger in late 2006 and further forecast 10% sequential growth in sales revenues for the second quarter of this year.

“As we had anticipated, our first quarter revenues declined as a result of lower volumes in wireless and core and this of course occurred at a time when we continue to make considerable investments in the next generation of these technologies,” commented Patricia Russo, Alcatel-Lucent’s CEO.

“We’ve made good progress in positioning the company for what is a highly competitive market and at the same time starting to build some good business momentum,” she added.

The company also highlighted its future operations, including a US$6 billion tie-up with premiums brands such as US-based operator Verizon Wireless. Additionally, Russo confirmed Alcatel-Lucent was on track to meet its cost savings projections of US$812 million for the year. The company hopes to achieve a cost-reduction of US$2.6 billion over the next three years.

“We continue to see the market as providing good opportunities for us and aligned with our portfolio,” reported Russo. “We continue to see emphasis and investment in fixed and mobile broadband expansion,” she added.

“We maintain our view for the carrier market to grow in the mid single digits and we expect that we will sequentially increase our revenue through the year and grow at that rate,” concluded Russo.

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