Alcatel-Lucent managed revenues of euro 3.247 billion for the quarter ended March 31, 2010 at a yearly fall rate of 9.8% and sequential decline by 18.1%. The net loss widened to euro 515 million or $ 661 million from euro 402 million posted last year.

The company blamed the slowed down financial performance to shortages in components inspite of growing demand for its wireless access and optical networking equipment.

“We are witnessing a recovery in the telecommunications equipment and related services market in some geographical areas especially North America. This recovery is driven by key technologies such as IP, terrestrial optics and WCDMA/LTE. With a solid position in all of these areas, Alcatel-Lucent is experiencing a strong increase in demand,” said Ben Verwaayen, CEO, Alcatel-Lucent.

“However, we were not able to fully satisfy customer demand for our products due to tightening components availability. This resulted in a weak financial performance this quarter, which does not reflect the overall underlying momentum within the company,” added the CEO.

Revenues from Asia Pacific region dropped from euro 649 million in Q1 2009 to euro 531 million in Q1 2010. The drop is more severe when compared to Q4 2009 revenues of euro 740 million.

Revenues from Networks business unit dropped by 13.1% to euro 2.2 billion while those from the Applications business unit dropped by 6.3% to euro 416 million.

The company however is confident of a much improved performance in Q2 2010.