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Alcatel-Lucent cuts 2007 forecast

Mega-vendor Alcatel-Lucent downwardly revised its full year forecast on Thursday, saying that it now expects revenue growth for 2007 to be flat to slightly up.

The company had previously estimated that its revenue would grow in the mid single digits at a constant rate.

Alcatel-Lucent said the change in revenue mix is expected to negatively impact the profitability of the company, especially in the current quarter. For the third quarter, operating income is expected to be around breakeven.

The company said the forecast revision is down to a change in capital spending with wireless customers in North America. Alcatel-Lucent is not seeing the projected volume changes that would have mitigated the ongoing pricing pressures it is experiencing.

Patricia Russo, Alcatel-Lucent’s CEO said, “Given ongoing dynamics in the rapidly changing telecom industry, the company is taking steps to accelerate the execution of its current restructuring program and to implement additional focused cost reduction plans in markets which require further actions to be taken.”


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