Alcatel-Lucent (ALU -10.6%) tumbles back towards $1 following an underwhelming Q3 report (I,...

|By:, SA News Editor

Alcatel-Lucent (ALU -10.6%) tumbles back towards $1 following an underwhelming Q3 report (I, II). Free cash flow (a big concern) was -$360M vs. -$511M in Q2, and gross margin fell 380 bps Q/Q and 740 bps Y/Y to 27.9%.  Networks (telecom equipment) -4% Y/Y, as strong switch/router and broadband sales are offset by weak optical and mobile sales. Software/services +5% and enterprise -14%. Europe remains an albatross, -15% Y/Y.  Alcatel's pension shortfall stood at €1.96B at the end of September, down from €2.18B at the end of June. (PR - PDF) (transcript)