Lucent reported $79m in net profit, down 79%, on revenues falling 12% to $2.1bn. It is in line with analysts forecasts, but a little more accentuated. The decline in sales is attributed to the weakness in the U.S. Market, where revenue declined 15%. Europe, the Multimedia Network Solutions and Services segments were growth areas. Gross margin was 41%. Lucent expects the fourth quarter (3Q06) to be the "highest quarterly revenue period for fiscal year 2006 by a significant margin."