Alcatel-Lucent said its first quarterly report would show "soft revenues" because sales fell to about $5.26 billion, down 8 percent year-on-year. Alcatel-Lucent's unexpected announcement amounts to a $352 million loss, according to a report from the AP. The company blamed the low sales volumes on second generation wireless activity in emerging markets and core legacy products. Carriers worldwide are also upgrading their networks much slower than Alcatel-Lucent had expected two years ago. The company has already announced 12,500 job cuts, and restructuring plans should decrease Alcatel-Lucent's employees by 1,900 by the end of the first quarter. The company will not reveal first-quarter net income until the official report comes out on May 11, but it did mention that it would post a capital gain of some $1.05 billion.
For more on Alcatel-Lucent:
- check out this AP article