Alcatel-Lucent reported EUR 3.81 billion of revenue in the second quarter, up 17.4 percent sequentially but down 2.4 percent compared to the year-earlier period. The group's adjusted gross margin came in a 36.1 percent for the quarter, versus 32.6 percent in the first quarter and 33.1 percent in the second quarter of 2009, driven by the product and geographic mix and the impact of fixed operations cost-cutting initiatives. Alcatel-Lucent said it expected a stronger second half. The continued improvement in sales trends combined with its action on costs are likely to deliver a significant leverage effect on the operating profit level, the company said. The group has maintained its full-year outlook of up to 5 percent growth in telecommunications equipment and related services revenues and an adjusted operating margin of 1-5 percent. In the second quarter, Alcatel-Lucent's revenue in its networks segment was down by 3.4 percent year-on-year to EUR 2.3 billion, but up 19.5 percent on the first quarter. The segment posted an adjusted operating profit of EUR 55 million for a 2.4 percent operating margin, compared to a EUR 136 million adjusted operating loss in the year-earlier period. Within this segement, the IP division posted revenues down 11.2 percent year-on-year to EUR 318 million, optics down 14.6 percent to EUR 622 million, wireless up 5 percent to EUR 1.02 billion, and wireline down 13.7 percent from EUR 366 million. The applications segment increased its revenue by 5.8 percent to EUR 489 million over the same period. Finally, the services segment's sales reached EUR 833 million, up 1.1 percent on the second-quarter of last year.
