Alcatel-Lucent warned of its second profit slump in as many quarters, as a weak performance in its wireless unit continued to affect the recently combined business, an Associated Press report said.
The report said in an unexpected announcement, the company said it would record an adjusted first-quarter operating loss of about 260 million euros ($352 million), half of which is linked to 'unusual significant' items.
The Associated Press report also said Alcatel-Lucent warned that it would report first-quarter revenue down 12% at current exchange rates to 3.9 billion euros ($5.28 billion).
The results, the company's second set since Alcatel acquired Lucent in November, compare with an adjusted pro-forma operating income of 246 million euros ($333 million) in the first quarter of 2006, the report said.
Analysts expressed concern, and Alcatel-Lucent shares fell 2.4% to 9.07 euros ($12.32) in a broadly lower Paris market, the report added.
The company is scheduled to issue full quarterly results May 11.Alcatel-Lucent added that the operating loss resulted from lower revenues, investments in W-CDMA and investment in the converged core portfolio, the report further said.