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Lucent Reports Dramatic Decline in Quarterly Earnings

6:15 am on July 27, 2006 | Category: Business, Cellular, Corporate, Wireless Technology

American telecom equipment vendor, Lucent Technologies, has reported a 79% decline in its fiscal third-quarter profit, largely as a result of lower-than-expected sales of wireless equipment in North America.

Lucent, which is set to merge with Alcatel by the end of 2006, earned a total of $79 million in the quarter that ended on June 30, compared to $372 million in the same period last year. As expected, the companyâ€™s revenue also fell to $2.05 billion, from $2.34 billion a year ago.

This decline in revenue and profits is said to be caused by a lull in demand for CDMA wireless networks, as customers prepare to switch to more advanced, next-generation products.

“While these results were clearly disappointing, we do not believe these results are indicative of the longer-term opportunities we see in the global mobility market,” commented Lucent Chairman and CEO, Patricia Russo, noting that spending should pick up again as carriers adopt new wireless applications.

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