Although Alcatel-Lucent maintains it's on track to break even in 2009, weak sales steepened its third-quarter net loss. During the third quarter, Alcatel-Lucent reported a $268 million loss, which was much deeper than the $59 million loss it suffered in the third quarter of 2008. In addition, the vendor reported an adjusted operating loss of $16.2 million.
Still, Alcatel-Lucent's CEO Ben Verwaayen maintains the company is making progress. "Against what remains a challenging market environment, we reiterate our view that our addressable market should be down between 8 percent and 12 percent at constant currency and that we will achieve an adjusted operating income around break-even this year," Verwaayen said in a statement.
Contributing to Alcatel-Lucent's ongoing troubles is the emergence of low-cost aggressive Chinese telecom vendors, including ZTE and Huawei. Alcatel-Lucent is not alone, however, as its European counterparts Nokia Siemens Networks and Ericsson also suffered third-quarter 2009 losses.
- see the earnings release here
- Wall Street Journal has this article
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