Alcatel-Lucent's (ALU -3.2%) board will reportedly hammer out the details of the company's...


Alcatel-Lucent's (ALU -3.2%) board will reportedly hammer out the details of the company's restructuring plan at a meeting next week. Items for discussion include which businesses will be affected by the planned layoff of 5K workers, and how to monetize 29K patents, given a deal with RPX (RPXC) has fallen short of expectations. French unions are worried about the job cuts, which will trim the cash-burning and debt-laden telecom equipment vendor's workforce by less than 7%.
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Comments (13)
  • pear
    , contributor
    Comments (2) | Send Message
     
    To my opinion or Alcatel becomes bankrupt or it is dismanteled or both. The management have failed. Ben Verwaayen and Camus have to resign. It is a pure disaster.
    5 Sep 2012, 03:02 PM Reply Like
  • rgperrin
    , contributor
    Comments (1566) | Send Message
     
    Lucent, then Alcatel-Lucent, has been a study in a slow, lingering death by suicide.
    5 Sep 2012, 03:02 PM Reply Like
  • Gary Bushwacher
    , contributor
    Comments (543) | Send Message
     
    " Lucent, then Alcatel-Lucent, has been a study in a slow, lingering death by suicide "

     

    So was Nortel - death by suicide

     

    No vision (or lost the way, really; because they did have it at one time), no strong mgmt to make the difficult, quick and correct decisions.

     

    Difficult - close down or sell off not just non-profitable, but non-core businesses

     

    Quick - make the decision early enough to not only stem the bleeding but allow the company to move on and focus on the right things

     

    Correct - Get rid of the right businesses. Nortel sold it's UMTS division to ALU because it thought the future was LTE, but UMTS had many a year to go, and became a cash cow. But it was no longer a Norty asset

     

    I always felt Norty tried to be everything to everybody thus spreading them too thin and reducing their critical mass in their core competencies.

     

    It all comes back to "VISION" had either company had it, they'd have avoided the pitfalls I listed above.
    5 Sep 2012, 03:50 PM Reply Like
  • serge9
    , contributor
    Comments (497) | Send Message
     
    Gary, I agree with what you said, but ALU may still have a chance
    as Reuter puts it
    "Reuters reported that part of Alcatel-Lucent’s (ALU) upcoming restructuring plans include “how to make more money from 29,000 patents after an initial project with licensing specialist RPX Corporation fell short of expectations”.

     

    In February 2012, ALU signed a deal with RPX Corporation, whereby RPX would handle licensing activities of ALU’s patent portfolio to RPX’s clients, which at the time included Google and Intel.

     

    Envision IP analyzed ALU’s portfolio of approximately 29,000 worldwide patents to better under what these patents may be valued. ALU currently owns 9,979 United States patents, with 4,083 US patents having claims related to various wireless technologies.

     

    Within its US wireless patent portfolio, ALU owns 3,529 patents which relate to 4G (3GPP LTE) and its underlying and predecessor technologies, such as UMTS, GSM, and EDGE.

     

    In comparison, Nortel Networks’ sale of ~4,500 US patents to a consortium including Apple, EMC, Ericsson, Microsoft, RIM, and Sony in 2011 for $4.5 billion included 1,082 US patents which relate to 4G and its underlying technologies.

     

    Likewise, Google’s acquisition of Motorola Mobility and its ~17,000 US patents for $12.5 billion, shortly after the Nortel deal announcement, included 3,580 US patents related to 4G and its underlying technologies.

     

    Using strictly a comparable deal analysis, which may be applicable since the patented technologies of Alcatel-Lucent, Nortel, and Motorola Mobility overlap significantly, the two prior deals may provide a reasonable valuation range for ALU’s US patent portfolio.

     

    While ALU has a much smaller US patent portfolio than Motorola, its does have about the same number of 4G-related US patents. ALU also has about three times the number of 4G-related US patents than Nortel."

     

    ALU still have a chance
    if as Gary said "if management can make the difficult, quick and correct decisions
    5 Sep 2012, 11:05 PM Reply Like
  • tsb10530
    , contributor
    Comments (222) | Send Message
     
    Lucent started sliding downhill with the corruption of Rich McGinn back in the late 90's. Now the incompetence of Ben and Camus have placed the final nails in ALU's coffin. It's sad because some of ALU's newer products are excellent and a tribute to the creativity and innovation of their R&D teams. In the right hands these products could really move a company to great heights, but instead ALU is bogged down by inept management, high debt and operational overhead, not to mention the French government's involvement and the crisis in Europe's economy. These outweigh and negate even the best of products.
    5 Sep 2012, 04:54 PM Reply Like
  • Gary Bushwacher
    , contributor
    Comments (543) | Send Message
     
    Serge, j'espere que vous etes correct

     

    I hope you are correct, because I've done some bottom feeding on ALU and bought in two tranches. But I'm underwater and wondering if I did the right thing.
    6 Sep 2012, 09:53 AM Reply Like
  • serge9
    , contributor
    Comments (497) | Send Message
     
    Gary,
    PEUGEOT exclu du Cac 40,
    ALU Rest Dans Le Cac 40
    ALU was not excluded from the CAC 40, which may mean that there is still a hope that ALU will recover
    ALU premarket (sept, 07,2012) is 1.18 up 7 cent from yesterday day close
    7 Sep 2012, 07:36 AM Reply Like
  • Laurent1962
    , contributor
    Comments (99) | Send Message
     
    ALU will leave the CAC 40 Index soon ....
    17 Nov 2012, 11:16 AM Reply Like
  • TimothyF
    , contributor
    Comments (223) | Send Message
     
    I was suprised reading this:"Unions in France, where 9,500 or 12.5 percent of the 76,000-strong workforce is located, are alarmed and met a junior minister on Monday to seek help from newly elected Socialist President Francois Hollande."

     

    From that perspective the ALU's job-cut of 5K workers seems insufficient, compared to its rivals, such as NSN. Let's see what's gonna happen next week, ALU's stock is weak, days like today it should bounce a lot harder/convincing than it did.

     

    I read that Ericsson is looking into purchasing NSN. Perhaps that's a game changer....
    6 Sep 2012, 02:42 PM Reply Like
  • Gary Bushwacher
    , contributor
    Comments (543) | Send Message
     
    I believe's Ericsson is only looking at NSN's services business
    7 Sep 2012, 08:47 AM Reply Like
  • TimothyF
    , contributor
    Comments (223) | Send Message
     
    No details were revealed, so don't know which part(s) they are looking at.
    7 Sep 2012, 08:57 AM Reply Like
  • serge9
    , contributor
    Comments (497) | Send Message
     
    the french ministre Arnaud Montebourg and Philippe Camus the president of ALU met yesterday.
    discussion will continue "said the minister"

     

    we will know more next week when Alu management decide on the restructuring plan

     

    = we may get some good news next week
    7 Sep 2012, 10:17 AM Reply Like
  • Gary Bushwacher
    , contributor
    Comments (543) | Send Message
     
    I think if you read any of the media (whether official or not) it clearly says services

     

    . . . at least the one I read did

     

    And if it weren't only services, you'd see a hell of lot more articles disecting the issue to death

     

    IMHO
    8 Sep 2012, 12:17 PM Reply Like
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