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Alcatel-Lucent Q1 loss drops by almost 80%

  • Alcatel-Lucent's (ALU) Q1 net loss narrowed to €73M ($101M) from €353M a year earlier, helped by lower costs and an 11% increase in revenue at the telecom-equipment company's Internet-routing division.
  • Losses per share dropped to $0.03 from $0.16.
  • Revenue fell 3.3% to €2.96B, mainly because of the increase in the euro vs the dollar and a 50% fall to €99M at the firm's managed-services business. Internet-routing sales +11% to €549M, wireless-network fell slightly to €999M.
  • Alcatel-Lucent swung to an adjusted operating profit of €33M from a loss of €179M and beat expectations for break-even.
  • Free-cash flow loss €398M vs €544M, adjusted for discontinued operations.
  • Alcatel-Lucent remains on track to sell €1B in assets.
  • Shares are +3.4% in Paris. (PR)
Comments (24)
  • Andreas Hopf
    , contributor
    Comments (7882) | Send Message
     
    Michel Combes (ex Vodafone CEO). Jean Raby (ex Goldman Sachs partner). All you need to know.

     

    "...an 11% increase in revenue at the telecom-equipment company's Internet-routing division…"

     

    Clearly, ALU is profiting from CSCO and JNPR weaknesses. 2014 will be interesting in that particular market segment.
    9 May, 03:49 AM Reply Like
  • dwdallam
    , contributor
    Comments (6644) | Send Message
     
    NOw go read the same thing on Nokia, and it reads much differently. If this we're Noia,for example, it would start out

     

    ALU LOSSES ALL ACROSS THE BOARD!
    9 May, 12:06 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (7882) | Send Message
     
    It's actually a good chance to accumulate. ALU, ERIC and NOK are in limbo, with ALU making the best contracts for a 12 month time period now. Three are one too many in Europe. Something will have to happen this year, in view of Huawei et al. So, with ALU progressing very well and exactly as put forward a year ago, you will profit from either ALU's break up value or from it being a JV or takeover candidate.

     

    Apart from that, all turnaround stocks are down once again, while old war horses like A, HPQ and IBM are standing their ground in recent days. After all, it is good to see that the MOMO stock driven technology stock sphere is punctured and ruptures so that we can buy at proper valuations.
    9 May, 12:51 PM Reply Like
  • dwdallam
    , contributor
    Comments (6644) | Send Message
     
    AH

     

    Pretty good argument. Just comes at a bad time for me.
    9 May, 03:10 PM Reply Like
  • manfredthree
    , contributor
    Comments (1427) | Send Message
     
    Huge increase in gross margin, and profitable excluding one time termination/restructuring costs... now just watch the next half dozen quarters as longer term contract revenues get traction.
    9 May, 06:13 AM Reply Like
  • djkidm
    , contributor
    Comments (364) | Send Message
     
    Note to SA editors,

     

    This headline "loss drops" feels like a double negative, and is confusing. Please explain your diction....

     

    Best
    9 May, 07:21 AM Reply Like
  • Strike
    , contributor
    Comments (1070) | Send Message
     
    djkidm, I understood the headline immediately as meaning that ALU's losses declined by 80 % compared with the year earlier quarter. What is so confusing about that? It simply means that they're still not in profit but have dramatically reduced their losses. The title beautifully summarized the turnaround potential of the company. Where is the 'double negative'?

     

    What do you consider would have been a better title, one that would have accurately reflected the improvement in ALU's fortunes?
    9 May, 10:42 AM Reply Like
  • wiredless
    , contributor
    Comments (54) | Send Message
     
    ALU beats by .05, reduces loss by 80% and swings to operating profit.
    9 May, 11:46 AM Reply Like
  • markatbbs
    , contributor
    Comments (5) | Send Message
     
    No good deed goes unpunished? Better forecast... Lower numbers? What gives?
    9 May, 11:06 AM Reply Like
  • User 22532261
    , contributor
    Comments (2) | Send Message
     
    So AlU is down 11 cents on this news. Is it another case of though beating expectations, the expectations were that the expectations would be beaten even more? Got that?
    9 May, 11:50 AM Reply Like
  • dwdallam
    , contributor
    Comments (6644) | Send Message
     
    Good. At least the Market wasn't fooled by SA posting the "great news" on ALU. It's not great news. They are still hemorrhaging cash like a throated cow.
    9 May, 03:12 PM Reply Like
  • jamesingram32
    , contributor
    Comments (544) | Send Message
     
    20 cents lower, arrgh.
    9 May, 11:56 AM Reply Like
  • tsb10530
    , contributor
    Comments (199) | Send Message
     
    It's nice that the loss has dropped, but the share price has also dropped $0.20 immediately after the "good news" was published...so around and around we go!
    9 May, 11:59 AM Reply Like
  • Enersavr
    , contributor
    Comments (122) | Send Message
     
    The main reason is that Revenue dropped and that one bad news will trump 10 other good news in the report. That is the forward looking part of any stock. It will slowly come back, but it needs patience. It sound like they should not have a loss next reporting period and that will be big, but if revenue drops again it will not matter.
    9 May, 12:15 PM Reply Like
  • dwdallam
    , contributor
    Comments (6644) | Send Message
     
    Sharks are starting to circle.
    9 May, 03:12 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (7882) | Send Message
     
    Read the transcript http://bit.ly/QnvqiK and relax with some good Bordeaux and Gitanes.

     

    Pay particularly attention to the core networking and then think about why CSCO and JNPR are no longer racking up contracts as they used to.
    9 May, 03:17 PM Reply Like
  • dwdallam
    , contributor
    Comments (6644) | Send Message
     
    AH

     

    What Blue Cheese do you recommend?
    10 May, 06:19 PM Reply Like
  • jamesingram32
    , contributor
    Comments (544) | Send Message
     
    well, AH I am going to try a little relaxing tonight with the second wine of Clinet. An excellent value wine, bought on a whim as ther CEO has the same name as me, and named the wine after himself. Turns out it is excellent. http://bit.ly/QnLlxq

     

    I'll skip the gitanes though....
    However, I'll have it with the hare that ran under my Land Rover on Tue evening. It was either I ate it, or leave it for the crows.
    9 May, 04:33 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (7882) | Send Message
     
    That looks like a good value Bordeaux. I applaud you for hunting hare with a proper car instead of letting hounds do the job. Only in Britain : )
    9 May, 04:42 PM Reply Like
  • jamesingram32
    , contributor
    Comments (544) | Send Message
     
    cheers AH at £10 it's well worth getting a case in.

     

    I wonder was the 'NOK thinking about ALU' just premature. Perhaps we'll see some upwards action again...one day.

     

    good luck to all, next week.
    9 May, 07:59 PM Reply Like
  • dwdallam
    , contributor
    Comments (6644) | Send Message
     
    Just to let you all know--THERE IS GOING TO BE NO NOKIA MERGER/BUYOUT of ERIC, JNPR, or ALU--just not happening. Combs has his fists up, and so does Nokia's CEO. They want to slug it out. ALU is pretty out of shape, while Nokia is now a lean fighting machine generating operating cash, while ALU is still fat and losing. And ALU is a ground based networking comapny, while Nokia R&Ds the heck out of Wireless. And, wireless is where the future of revenue is going.

     

    Once Combs figures that out--he's going to whiz and poo himself looking up at how muscular, in shape, and well fed his opponent is. He'll probably start hemorrhaging diarrhea, like ALU is hemorrhaging cash.
    10 May, 06:22 PM Reply Like
  • tsb10530
    , contributor
    Comments (199) | Send Message
     
    Why would anyone say ALU at $4.50 or even $6.00 to $8.40 by 2015? It seems reality would dictate the opposite direction! It’s a sluggish, out of shape French corporation that carries far too much debt, is being run with a French union whose employee count burns cash, and is headquartered in a French country whose marginalized economy blocks out the horizon...the PERFECT STORM!
    11 May, 10:28 AM Reply Like
  • dwdallam
    , contributor
    Comments (6644) | Send Message
     
    tsb

     

    Because they are stopping the hemorrhaging at a fast rate and getting huge contracts. Read the latest financials.
    13 May, 02:47 PM Reply Like
  • jamesingram32
    , contributor
    Comments (544) | Send Message
     
    Perfect turnaround. Happy to stay long.
    14 May, 03:25 AM Reply Like
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