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Technology Sector Continues to Slump as Alcatel-Lucent Reports It Will Miss Their Profit Targets for the Year

NEW YORK, NY -- (Marketwire) -- 07/19/12 -- The technology sector has been in a slump recently after numerous companies have lowered outlooks due to macroeconomic uncertainties. Shares of communications equipment companies were dragged down Tuesday after telecom equipment maker Alcatel-Lucent reported it would miss its profit target for the year. The Paragon Report examines investing opportunities in the Communications Equipment Industry and provides equity research on Alcatel-Lucent SA (NYSE: ALU) and Juniper Networks, Inc. (NYSE: JNPR).

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Alcatel-Lucent reported it will post a second quarter operation loss due to slowing demand. The company expects the second half of the year to improve but cited "year-to-date performance and the difficult macro-economic environment" as reasons they will not make their operating margin for the year.

"Alcatel-Lucent's comment about the revenue mix, the more concerning part of the announcement, is likely to weigh most" on Ericsson, Ciena and Juniper, said Stuart Jeffrey, an analyst at Nomura, in a recent note.

Paragon Report releases regular market updates on the Communications Equipment Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at and get exclusive access to our numerous stock reports and industry newsletters.

Based on analysis of second quarter preliminary financial results, Alcatel-Lucent expects Q2 2012 adjusted operating income to be a loss of around Euro 40 million with revenues above Euro 3.5 billion. Alcatel-Lucent will provide further details on its business performance and full-year guidance during its second quarter earnings presentation on July 26, 2012. Shares of the company dropped almost 20 percent Tuesday.

Juniper Networks designs, develops, and sells products and services that together provide its customers with network infrastructure. The company is scheduled to release preliminary financial results for the quarter ended June 30, 2012, on July 24, 2012 after the close of the market and will host a conference call at 2:00 p.m. PDT. Shares of the company are down over 30 percent year-to-date.

The Paragon Report has not been compensated by any of the above-mentioned publicly traded companies. Paragon Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at:

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