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Alcatel-Lucent (ALU)

  • Oct. 31, 2013, 12:05 AM
  • Oct. 30, 2013, 5:30 PM
  • Oct. 29, 2013, 9:12 AM
  • Oct. 16, 2013, 3:28 AM
    • Alcatel-Lucent (ALU) "could disappear," CEO Michael Combes said yesterday as he sought to explain the latest in a series of "turnaround" plans that the perennial loss-maker has been enacting since Alcatel merged with Lucent in 2006.
    • Under Combes' program, Alcatel-Lucent intends to lay off 10,000 workers, including 900 in France. That has caused protests from French ministers down to the workers, over 1,500 of whom yesterday marched about the issue.
    • At least Combes doesn't intend for ALU to leave France, a move that predecessor Ben Verwaayen had considered.
    • Shares are -1.6% in Paris.
  • Oct. 14, 2013, 2:37 PM
    • Barclays, which upgraded Alcatel-Lucent (ALU +4.3%) to Overweight and cut Ericsson (ERIC -1.9%) to Underweight this morning, thinks speculation about a merger between Alcatel and Nokia (NOK -0.5%) is credible, and sees the combined company providing tougher competition for Ericsson (currently the mobile infrastructure market's top vendor).
    • There have been reports Nokia, set to reap a $7.2B windfall from the Microsoft deal, is thinking of approaching Alcatel about a tie-up. However, no talks are believed to be underway, and the reports didn't explicitly state Nokia is eying a full-blown merger.
    • Mergers between major networking/telecom equipment vendors have often yielded share losses rather than gains in the quarters following the deal's completion, thanks to both integration challenges and efforts by common customers to diversify their supplier lists. Alcatel's merger with Lucent acts as an example.
  • Oct. 14, 2013, 9:42 AM
    • Alcatel-Lucent (ALU +1.4%) has been upgraded to Overweight by Barclays, and Ericsson (ERIC -3.3%) cut to Underweight.
    • AMD (AMD +1.4%) has been upgraded to Outperform by Wedbush.
    • Stratasys (SSYS +2.2%) has been upgraded to Buy by Dougherty & Co.
    • Glu Mobile (GLUU +1.3%) has been upgraded to Buy by B. Riley.
    • Mattson (MTSN +4.9%) has been upgraded to Buy by B. Riley.
    • Expedia (EXPE -6.9%)  has been cut to Hold by Deutsche.
    • Atmel (ATML -1.9%) has been cut to Sector Perform by Pac Crest.
    • As part of a coverage launch for chip equipment stocks, KLA-Tencor (KLAC +0.6%) and Lam Research (LRCX -0.4%) have been started at Overweight by JPMorgan, and Applied Materials (AMAT -1.2%) has been started at Neutral.
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  • Oct. 10, 2013, 9:16 AM
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  • Oct. 9, 2013, 9:43 AM
    • Marbridge Consulting reports Alcatel (ALU -0.1%) was the only Western telecom equipment provider to receive a large share of a China Telecom (CHA +0.2%) 4G equipment tender.
    • Local equipment giants ZTE (ZTCOY.PK) and Huawei are received 32% and 28.9% of the order, respectively. Alcatel came in at #3 with 16.6%, and was followed by China's New Postcom (6.4%) and Datang (5.7%). Ericsson, Nokia, and Fiberhome (another local firm) received less than 5% of the order between them.
    • Alcatel also received a double-digit share of a recent China Mobile tender for 207K 4G base stations. Ericsson and Nokia fared notably better that time around.
  • Oct. 9, 2013, 4:16 AM
    • French Prime Minister Jean-Marc Ayrault has warned Alcatel-Lucent (ALU) that authorities won't approve its planned layoffs in the country unless the telecom-equipment maker negotiates a good a deal with unions, and saves as many jobs and sites as possible.
    • Alcatel-Lucent yesterday unveiled a program to slash 10,000 positions, including 900 in France.
    • A law passed in May makes it easier for companies to fire staff but forces them to negotiate with workers. Any agreement must be authorized by authorities.
    • Alcatel-Lucent's shares are -5.7% in Paris.
  • Oct. 8, 2013, 4:33 AM
    • Alcatel-Lucent (ALU) has confirmed reports that it intends to slash 10,000 staff, or 14% of its global workforce, by 2015 as part of its previously announced Shift Plan in which it's looking to save €1B+.
    • Alcatel-Lucent will cut 4,100 jobs in EMEA - including 900 in France next year - 3,800 in Asia and 2,100 in the Americas.
    • "This is something Alcatel needed to do," says analyst Eric Beaudet. "The magnitude of the plan is big and shows the management’s resolve in rapidly executing its turnaround."
    • Based on 2012 revenue, Alcatel-Lucent's sales per employee were $257,000 vs NSN's $313,500 and Ericsson's $305,000.
    • Shares are +2.3% premarket. (PR)
  • Oct. 7, 2013, 3:56 PM
    • French papers Les Echos and Le Figaro report Alcatel (ALU +0.4%) plans to lower its headcount by 10K - 15K jobs will be cut, and 5K created - as part of its efforts (disclosed in June) to cut costs by €1B ($1.35B) by 2015.
    • Le Figaro adds 4.1K of the job cuts will be in EMEA, 3.8K in Asia, and 2.1K in the Americas. Alcatel currently employs 72K workers globally.
    • Look for a decent portion of the cuts to hit Alcatel's Optics (-7% Y/Y in Q2), Focused Businesses (serves non-telecom clients, -18%), and Managed Services (-15%) units. Many of the new jobs could go into the IP (switches/routers, +21%) and Platforms (telecom software, +23%) divisions.
  • Oct. 3, 2013, 9:58 AM
    • Alcatel-Lucent (ALU -0.4%) has been cut to Market Perform by Raymond James. BMO issued a similar downgrade three weeks ago.
    • Mellanox (MLNX +3.9%) has been upgraded to Buy by Craig-Hallum.
    • Riverbed (RVBD -0.1%) has been upgraded to Sector Perform by RBC.
    • China Mobile (CHL -1.6%) has been cut to Underperform by BofA/Merrill.
    • Yandex (YNDX +3.7%) has been started at Buy by Citi.
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  • Oct. 1, 2013, 10:33 AM
    • Alcatel-Lucent (ALU +5.2%) is throwing its weight behind a management software platform called CloudBand, which (in theory, at least) allows carriers to manage networks and services using software running on commodity servers, rather than costlier dedicated hardware that often takes longer to provision.
    • CloudBand is based on a concept known as network functions virtualization (NFV), which already has the backing of many large carriers. Alcatel is attempting to create an ecosystem around CloudBand; initial partners include H-P, Red Hat, Intel, Deutsche Telekom, and Telefonica.
    • Much like Juniper with its enterprise software-defined networking (SDN) efforts, Alcatel is betting supporting an open standards-based approach to a network management platform will pay off, as broader industry supports offsets a loss of customer lock-in.
    • Shares are rallying on what's proving a good day for European tech names.
    • Previous: Alcatel launched carrier SDN platform
  • Sep. 28, 2013, 2:40 PM
    • John Chambers (CSCO): "We do everything in wireless except for the radio ... Now, we have a creative idea there, and I’ve just funded our first startup to see if that works ... The market is ripe for a new player."
    • Chambers won't name the startup, but his remarks suggest Cisco plans to directly take on Ericsson (ERIC), Nokia (NOK), and Alcatel-Lucent (ALU) in the giant mobile base station market. Cisco recently bought small cell base station vendor Ubiquisys, and also sells switches/routers and management software to mobile carriers, but until now has argued the core base station market is too commoditized.
    • Separately, Chambers predicts "IT as a service and white label will be [Cisco's] biggest competitors three to five years out." That's a reference to cloud infrastructure providers (none larger than Amazon), who often rely on cheap white-label switches, as well as the use of similar hardware from Web giants such as Facebook and Google.
    • Chambers also: 1) Insists Cisco's storage alliances with the likes of EMC and NetApp (NTAP) will stay in place, in spite of the Whiptail deal. 2) Predicts Cisco's upcoming Insieme switches will help it compete against private Arista. Arista, whose high-density switches use 3rd-party silicon (unlike Cisco's), could do a huge IPO next year. 3) Questions the scalability of the software-defined networking platform offered by VMware's (VMW) Nicira unit (generally seen as a threat), and claims Nicira has less than $10M worth of deployments. Of course, the value of the switches managed by Nicira's products could be much larger.
    • Previous: Cisco lower, Chambers cautious about macro trends
  • Sep. 25, 2013, 3:57 PM
    • Several sources tell Reuters Nokia (NOK +0.8%) is "discussing internally" whether it should approach Alcatel-Lucent (ALU +4.6%) about a tie-up. The news service isn't clear on whether Nokia is interested in a full-blown merger. Sources caution no formal talks are currently underway.
    • Alcatel shares have jumped on the report. They took off earlier this month after the Nokia-Microsoft deal fueled M&A speculation. The Microsoft deal stands to leave Nokia with nearly $20B in total cash, and over $10B in net cash, to go shopping with.
    • Once the Microsoft deal closes, Nokia will be focused on telecom infrastructure (via NSN), mapping/location services, and IP licensing. One Reuters source states Nokia held "on again, off again" talks about buying Alcatel's mobile infrastructure business until late 2012.
  • Sep. 13, 2013, 9:48 AM
    • Intel (INTC +2.5%) has been upgraded to Buy by Jefferies in the wake of the Intel Developer Forum and its many product announcements (I, II).
    • Alcatel-Lucent (ALU -0.9%) has been cut to Market Perform by BMO following a huge summer rally.
    • Former JV partners Verizon (VZ +0.8%) and Vodafone (VOD +0.9%) have been upgraded to Overweight by Evercore. Vodafone just won a closely-watched shareholder vote for the Kabel Deutschland deal.
    • Oclaro (OCLR +15.1%) has been upgraded to Buy by B. Riley in response to the II-VI deal.
    • Akamai (AKAM +1.3%) has been upgraded to Buy by Canaccord.
    • Monolithic Power (MPWR -2.2%) has been cut to Hold by Needham.
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Company Description
Alcatel-Lucent provides mobile and broadband networking services. Its products and services includes Carrier Ethernet access and aggregation switch, Network Intelligence portfolio, and Consulting Services.
Sector: Technology
Country: France