Telecoms equipment giant Lucent has run up its eleventh consecutive quarterly loss.

The struggling technology giant reported a loss of $264m (�164m; 246 euros)), significantly lower than the $423m lost in the same three months a year earlier.

Despite failing to return to profitability, the company insists that the worst of the slump is over.

And it has stuck by its forecast of a 20% rise in sales for the first three months of 2003.

Spending cutbacks

Lucent's fortunes have waned in line with those of the telecoms companies that are its clients.

Over the past couple of years, previously free-spending telecoms operators have postponed or cancelled investment in new technology.

Lucent's stock has fallen more than 90% since it launched a restructuring in January 2001.

But it has more than doubled since the end of last September, and was rising in early trade on Wednesday.

The firm is aiming to make a profit during the financial year that ends in September.