LUCENT Technologies, which employs 750 people at six sites in Swindon, has posted quarterly results down 16 per cent from £3.52 billion for the second quarter ending in April, to £2.95 billion.

"The market continues to be very challenging," said Lucent's chief executive officer, Patricia Russo.

"Capital spending con-straints have intensified and remained in place much longer than anyone would have predicted.

"Despite this, we are pleased to have generated an improvement in our gross margin and positive operat-ing cash flow.

"And while our bottom line was negatively impacted by a non-cash tax charge we recorded this quarter, we continue to see improve-ments in the operating fun-damentals of our business.

"This speaks to the effec-tiveness of our restructuring efforts.

"During this prolonged market downturn, we've concentrated on working closely with our customers to position the full breadth of our products and services; significantly reducing our cost structure; driving to reduce our EPS breakeven revenue figure and improv-ing our balance sheet so that Lucent will be well-positi-oned to capitalise.