Alcatel-Lucent reports $10.8m in losses in Q1

Alcatel-Lucent posted a loss of 8 million euros ($10.8 million) for the first quarter due to effects from the merger that formed the company but promised a strong second half. Its shares rose 2.7%, an Associated Press report said.

The Associated Press report said since the trans-Altantic merger that created the company, it has posted two profit warnings while some rivals, including Ericsson, say they are winning market share.

The report said Alcatel-Lucent did not have comparative net figures for the year-ago quarter, since the company was formed late last year.

It reported an adjusted first-quarter profit of 199 million euros ($269.2 million) compared with last year's 306 million euros, helped by a 677 million euros ($915.8 million) gain on the sale of assets to French electronics group Thales, the report said.

Revenue fell 12.4% to 3.88 billion euros ($5.25 billion) from 4.43 billion euros in the first quarter of 2006, the report said.

But CEO Patricia Russo said she expected full-year revenue growth of between 4% to 6%.

Russo admitted the target 'implies we'll have a very strong second half 'but said that it would be made possible by progress in the merger and restructuring, the report added.

Russo also said that second-quarter revenue was expected to grow about 10% from the first quarter at a constant currency rate, propelled by an improving order flow, the report further said.

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