French-based telecoms infrastructure group Alcatel-Lucent announced a fresh net loss for the second quarter of 2008 and warned that soft spending seen among U.S. operators could spread to Europe.

Chief Executive Patricia Russo, who today announced her departure, alongside that of Chairman and former CEO Serge Tchuruk, said: 'Over the past three months, the global macroeconomic environment has further deteriorated and the economic slowdown has begun to spread to Europe. Although not evident yet, we believe this could impact somewhat the capital expenditure decisions of certain European customers, especially in fixed access.'

The company is seeing stronger-than-expected demand for GSM/W-CDMA mobile access in emerging markets, especially in Asia and feels 'positive' about prospects in China, in both GSM and 3G for the fourth quarter and next year.

Given 'stronger-than-initially-expected' demand in services products, especially network operations and network integration, Alcatel-Lucent maintained

its outlook for a flat overall equipment and services market in 2008 at constant currency.

The group maintained guidance for full-year 2008 sales to fall in a low-to-mid single-digit range and an adjusted gross margin 'in the mid thirties' and an adjusted operating margin in the low-to-mid single-digit range in percentage of revenue in full-year 2008.

For the third-quarter 2008, Alcatel-Lucent expects its revenue to be flat-to-slightly-down sequentially, followed by a strong ramp up in the fourth quarter.

Alcatel-Lucent posted second-quarter sales of 4.101 billion euros, down 5.2 percent from 4.326 billion a year earlier, and said its adjusted net loss narrowed to 222 million in the period from 336 million a year earlier.

Adjusted gross profit was 1.433 billion euros, down 1.0 percent from 1.447 billion, but the decline in sales meant that the gross margin climbed to 34.9 percent from 33.4 percent.

On a reported basis, the group had a net loss 1.102 billion euros hit by a faster-than-expected decline in CDMA activity after a 'strong reduction' in spending by a 'key customer' in North America.

This led the group to book a 810-million-euro impairment charge.

Analysts polled by Thomson Financial had expected Alcatel-Lucent to deliver a net profit of 26.51 million euros after posting a net loss of 58.00 million a year earlier.

Sales were seen at 4.097 billion euros after 3.864 billion a year ago.

Source:Thomson Financial