Alcatel-Lucent has reported a drop in its first-quarter revenues.

The firm saw a 12.3 percent annual fall in revenues during the opening quarter of 2012, on a reported basis, and a 14.8 percent year-over-year decline at constant currency.

During the first three months of the year, the firm's revenues reached €3.2 billion, while its adjusted gross profit stood at €971 million, or 30.3 percent of revenues.

Overall, the firm saw an adjusted operating loss of €221 million.

The company reported a net profit of €398 million, or 14 cents per share, and operating cashflow stood at €168 million.

Commenting on the financial results, Ben Verwaayen, chief executive officer of Alcatel-Lucent, said: "Today's results reflect a slow start to the year while demonstrating good control on both cash and costs and a strong momentum in our next generation products portfolio.

"But gross margin is not at the level we would have liked. Since the last quarter of 2011, we have been negatively impacted by lower volume and by an unfavourable revenue mix, particularly in services.