The resurgence in fortunes for telecoms equipment vendors has been reinforced by positive second quarter reports from both Siemens and Alcatel. Siemens saw profit rise 29% to EUR815 million in the three months to the end of June, benefiting from a three-year cost cutting plan and general improvement in the macroeconomic environment. Sales were up for the first time in two years, by EUR840 million to EUR18.22 billion, leading the vendor to predict it would beat its full-year earnings forecast. Alcatel SA, the world’s biggest broadband equipment maker, posted its second straight quarterly profit as it didn’t repeat costs for slashing jobs. Net income was EUR23 million, compared with a loss of EUR675 million a year earlier when it took a EUR305 million charge on a reduction in staff. Sales were up 3.7% year-on-year to EUR3.08 billion, whilst gross margin rose to 38.3% of sales. Alcatel forecast sales to grow more than 10% in the third quarter, but stuck to full-year forecasts.