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 Ciena Corporation (NASDAQ: CIEN) and Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC).
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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.
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Ciena is a provider of communications networking equipment, software and services that support the transport, switching, aggregation and management of voice, video and data traffic. For the fiscal second quarter 2012, Ciena reported revenue of $477.6 million. On the basis of GAAP, the company's net loss for the fiscal second quarter 2012 was $27.8 million.
Ericsson is the world's leading provider of communications technology and services. Their offering comprises services, software and infrastructure within Information and communications technology for telecom operators and other industries. Today more than 40 percent of the world's mobile traffic goes through Ericsson networks. Shares of the company are down 18 percent year-to-date.
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