Alcatel-Lucent Q1: Revenue Down, Sees Break-Even in '09

Life remains a struggle for telecom equipment supplier Alcatel-Lucent (ALU).

The company Tuesday morning posted Q1 revenues of 3.6 billion Euros, down 6.9% year over year and 24.7% sequentially; on a constant currency basis the numbers look even worse, down 11.2% year over year and 28.3% sequentially. Alcatel-Lucent posted an adjusted operating loss of 254 million Euros. The company said adjusted gross margin fell to 31.5%, from 33.4% in Q4, and 36.2% a year ago.

Alcatel-Lucent said it continues to expect full year 2009 adjusted operating income to be break even. The company sees communications equipment industry demand down 8%-12% for the year.

The company said that so far it has cut 290 of a planned 1,000 management job reductions, and 770 of a planned 5,000 reduction in contract positions.

ALU Tuesday morning is down 4 cents, at $2.57.

Original post