In its first earnings report since agreeing to merge with Lucent Technologies, Alcatel reported a drop in first-quarter net income on Thursday and warned that increasing competition will probably slow its revenue growth in the second quarter. Revenue for the first quarter grew 17.6 percent to 3.1 billion euros (US$3.8 billion as of March 31, the last date of the period being reported), from 2.6 billion euros in the first quarter last year. But net income fell to 104 million euros, from 124 million in the first quarter last year, Alcatel said. A drop in income in Alcatel’s mobile communications segment contributed to the slower growth. Alcatel’s mobile business brought in 57 million euros in income during the quarter, compared to 66 million a year earlier. Revenue for the mobile business, however, grew 15 percent over the same period, to 908 million euros. The Paris-based company reported solid income growth in its fixed-line business, which increased to 110 million euros from 50 million in the first quarter last year. Revenue for the fixed line operation grew 29 percent to 1.3 billion euros. Demand from operators for network equipment that can allow them to offer triple-play services as well as the transition from dial-up to DSL is driving sales for the group, Alcatel said. Alcatel also said that it grew its business in North America by 50 percent compared to the same time last year. Looking ahead, Alcatel expects revenue to increase by only a single-digit percentage for the second quarter. The company blamed intensifying competition for the expected slowdown. Alcatel also announced Thursday that it has appointed Christian Reinaudo, currently president of Alcatel’s Asia Pacific business, to lead the team that will be responsible for managing the integration with Lucent. Earlier this week, Lucent also reported a drop in first-quarter earnings, blaming lower sales and litigation charges. The two companies announced their intention to merge in April. The deal is expected to be completed in six to 12 months, Alcatel said.-Nancy Gohring, IDG News ServiceFor related news coverage, read Lucent Earnings Drop Ahead of Planned Merger and Alcatel Hands Satellites to Thales Ahead of Lucent Deal.Check out our CIO News Alerts and Tech Informer pages for more updated news coverage. Related content feature 13 essential skills for accelerating digital transformation IT leaders too often find themselves behind on business-critical transformation efforts due to gaps in the technical, leadership, and business skills necessary to execute and drive change. By Stephanie Overby Jun 05, 2023 12 mins Digital Transformation IT Skills tip 3 things CIOs must do now to accurately hit net-zero targets More than a third of the world’s largest companies are making their net-zero targets public, yet nearly all will fail to hit them if they don’t double the pace of emissions reduction by 2030. This puts leading executives, CIOs in particul By Diana Bersohn and Mauricio Bermudez-Neubauer Jun 05, 2023 5 mins CIO Accenture Emerging Technology case study Merck Life Sciences banks on RPA to streamline regulatory compliance Automated bots assisted in compliance, thereby enabling the company to increase revenue and save precious human hours, freeing up staff for higher-level tasks. By Yashvendra Singh Jun 05, 2023 5 mins Digital Transformation Robotic Process Automation feature Expedia poised to take flight with generative AI CTO Rathi Murthy sees the online travel service’s vast troves of data and AI expertise fueling a two-pronged transformation strategy aimed at growing the company by bringing more of the travel industry online. By Paula Rooney Jun 02, 2023 7 mins Travel and Hospitality Industry Digital Transformation Artificial Intelligence Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe