CIEN) and Acme Packet ( APKT) are going to suddenly let off the gas pedal. Management has not addressed the reality that ALU's margins are likely to remain under pressure for the foreseeable future. Equally important and perhaps more so, ALU has decided to cut costs as soon as the long-awaited carrier spending recovery is finally emerging. Essentially, the company is likely to lose incremental market share when the likes of AT&T ( T) and Verizon ( VZ) are about to loosen their purse strings to invest capital back into their businesses. It's poor timing. CSCO) and Juniper ( JNPR). So there's cause for some optimism. So why, then, does it now seem appropriate for management to cut spending in areas like research and development? Given Alcatel-Lucent's strong patent portfolio, why not leverage these assets to produce competing products to fight off the likes of Ciena, which has begun to dominate ALU's core optical networking business?