Alcatel-Lucent (NYSE: ALU-message board) reported a second-quarter net loss of €586 million ($803 million) this morning as merger pressures and weaknesses in mobile and voice products hit the giant vendor's revenues and margins, sending its stock down more than 8 percent. (See Alcatel-Lucent Reports 2Q07.)

    Revenues were €4.33 billion, a marked increase from the first quarter but down by 4 percent from the pro forma €4.49 billion a merged Alcatel and Lucent would have reported in the second quarter of 2006, as the table below shows. (See Alcatel-Lucent Reports Q1.)

    The net loss of €586 million includes €250 million in non-cash charges (referred to as purchase price allocation entries) related to the merger of Alcatel and Lucent, which was completed at the end of November last year. (See Farewell, Lucent and Alcatel, Lucent Merge.)

    Discounting those non-cash charges, the adjusted net loss was €336 million ($460 million), compared with an adjusted pro forma net profit of €302 million ($414 million) in the same period a year ago.

    That adjusted loss includes a number of one-off items ¨C- including an "impairment charge related to W-CDMA assets" of €298 million ($408 million) -- that, together, accounted for €176 million ($241 million) of the second quarter's adjusted losses.

    The numbers were also affected by a low gross margin rate of 33.4 percent. The vendor says that number was hit by "significant investments in key markets," an "unfavorable" mix of product and geographic sales, and "product related transition costs" as customers deploy new networks, and that "the gross margin level this quarter is not indicative of the business going forward."

    Investors, although braced for another challenging set of financials, didn't like what they saw, and AlcaLu's share price dropped by €0.79, more than 8 percent, to €8.80 on the Paris stock exchange. (See Merger Tears Into AlcaLu's Sales, AlcaLu Details Q1 Woes, and Alcatel-Lucent Suffers Stock Shock .)