Lucent Technologies reported Wednesday a small gain in revenue, but a 49 percent drop in profits in its first quarter report.
The telecommunications equipment manufacturer reported revenue for the quarter of $2.34 billion " up 3.4 percent from $2.26 billion in the year-earlier quarter. Net income of $174 million, or four cents a share, was reported for the quarter. Last year, Lucent earned $349 million in the first quarter.
"While the wireline market remains a challenge in the near term," said Chief Executive Patricia Russo in a statement. "we continue to execute on a long-term strategy of investing in areas that are critical to our vision of convergence such as next-gen optical, VoIP, broadband access, and mobile high-speed data, as well as services, government and emerging markets."
Russo also highlighted Lucent's $1.5 billion contract with Sprint to enhance its wireless network as a bright spot in its business.
Subsea cable alternatives can provide a level of comfort for those concerned about disruptions. Realistically, they will continue to play a small, but critical role in the short term.
Maintaining existing network infrastructures often incurs huge technical debt before newer technologies are adopted over time.
Amid ongoing regional uncertainties, telecom infrastructure in the Middle East has expand to include terrestrial low-latency network infrastructure, which offers resilience and agility in navigating political complexities without relying solely on undersea networks.
