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Alcatel-Lucent (ALU -10.6%) tumbles back towards $1 following an underwhelming Q3 report (I,...

Alcatel-Lucent (ALU -10.6%) tumbles back towards $1 following an underwhelming Q3 report (I, II). Free cash flow (a big concern) was -$360M vs. -$511M in Q2, and gross margin fell 380 bps Q/Q and 740 bps Y/Y to 27.9%.  Networks (telecom equipment) -4% Y/Y, as strong switch/router and broadband sales are offset by weak optical and mobile sales. Software/services +5% and enterprise -14%. Europe remains an albatross, -15% Y/Y.  Alcatel's pension shortfall stood at €1.96B at the end of September, down from €2.18B at the end of June. (PR - PDF) (transcript)
Comments (3)
  • TimothyF
    , contributor
    Comments (223) | Send Message
    Europe is F*cked. And telco's too, struggling keeping their precious business models alive, under rapidly changing market environments....
    2 Nov 2012, 10:26 AM Reply Like
  • Matt-Man
    , contributor
    Comments (602) | Send Message
    Alus sales are mainly from US. Company will not exist in current form next year is my guess.


    Maybe signaling buy to Ericsson stock
    2 Nov 2012, 12:48 PM Reply Like
  • serge9
    , contributor
    Comments (414) | Send Message
    it seems that ALU is looking for a buyer for the Submarine and enterprise divisions, if they can complete the sale before Feb 2013
    Then they will have the cash to pay for the debt on april 2013 (announced by reuters)
    = Alu may still haver a chance to survive
    4 Nov 2012, 01:17 AM Reply Like
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