Alcatel-Lucent posts 35 percent drop in profit

Telecommunications vendor Alcatel-Lucent posted a 35 percent drop in profit during the first quarter of 2007, but indicated next quarter should see revenue grow 10 percent sequentially. Adjusted net income fell to $268 million. Late last month the company warned that it would post a loss for the quarter because of a drop in sales from its wireless and traditional network division.

As part of its recent merger, Alcatel-Lucent is currently in the process of shedding 12,500 jobs over three years, instead of an originally announced 9,000. The company previously said the merger would yield annual cost savings of €400 million in 2007, but it increased that total to €600 million, even though it did not indicate how it would achieve these savings.

For more on Alcatel-Lucent's drop:
- see this WSJ article (sub. req.)