It’s another rebuilding year for Alcatel-Lucent (NYSE: ALU).
“Things are not off to a great start for Alcatel-Lucent,” RBC Capital Markets analyst Mark Sue wrote after the vendor’s first-quarter earnings report today. “Challenged segments remain carrier and enterprise, although there were some bright spots in IP and WCDMA. Application software grew in the mid-single-digit rate (at constant currency), while services continue to chug along, growing in the high teens. North America saw the biggest rate of revenue decline, down 28% year over year.”
A notable aspect of the company’s rebuilding is its reduction in research and development (R&D) spending, particularly in the back half of the year, as it looks to partners to help carry the load of innovation. Though Alcatel-Lucent’s R&D spending increased 3% sequentially in the first quarter, the vendor said it will decrease as the year goes on, particularly in the second half. more