We've already seen a parade of downcast pre-announcements from telecommunications vendors, but this morning's addition to the list is a bit bigger. Alcatel-Lucent (NYSE:ALU, news, filings) said this morning that the poor economy is slowing down their progress more than they had projected.
Alcatel-Lucent now expects an operating loss of about €40M for the quarter with total revenue checking in somewhere above €3.5B, or US$4.3B. As you can imagine, that's not making traders happy, as the stock is down 15% in the premarket.
Alcatel-Lucent said it was seeing "good sequential growth with all geographies and divisions, but slower than expected business mix improvement." They also expect a better second half, but the first six months have been weak enough that they no longer expect ot make their full year adjusted operating margin guidance.
We need a bit of good news now to balance things out. Surely there is some other segment of the market other than magicJack that had a good quarter?