Alcatel-Lucent drastically cut its annual revenue growth outlook and said third quarter profit will be "break-even." The company now expects full year revenue growth to be flat or just slightly up, while the company previously expected growth in the mid-single digit range. CEO Patricia Russo said major customers simply spent less than the company had anticipated. This is not the first profit warning to come from the company, which was formed from a merger between Alcatel and Lucent last November. In late January, the company warned that fourth-quarter profit would be impacted by slow sales in North America. A few weeks later Alcatel-Lucent said first-quarter profits would also be impacted by slow sales in North America.
The company blamed the most recent revision on wireless customers in North America since Alcatel-Lucent is "not seeing the projected volume changes that would have mitigated the ongoing pricing pressures it is experiencing."
For more on the Alcatel-Lucent revision:
- check out FierceTelecom's coverage here
- read this article from the WSJ (sub. req.)