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at CNBC.com (Wed, 6:36PM)
PR Newswire (Mar 4, 2014)
PR Newswire (Mar 3, 2014)
PR Newswire (Feb 26, 2014)
Alcatel-Lucent join forces with Telefonica to accelerate industry shift to Network Functions VirtualizationPR Newswire (Feb 24, 2014)
PR Newswire (Feb 23, 2014)
at Fox Business (Feb 20, 2014)
at MarketWatch.com (Feb 11, 2014)
PR Newswire (Jan 29, 2014)
PR Newswire (Jan 23, 2014)
at MarketWatch.com (Jan 13, 2014)
at MarketWatch.com (Jan 9, 2014)
at CNBC.com (Wed, 6:36PM)
at Fox Business (Feb 20, 2014)
at MarketWatch.com (Feb 11, 2014)
at MarketWatch.com (Jan 13, 2014)
at MarketWatch.com (Jan 9, 2014)
ALU vs. ETF Alternatives
Monday, Mar 109:48 AM
Monday, Mar 109:48 AM| Comment!
- Alcatel-Lucent (ALU +0.8%) has been upgraded to Outperform by BMO.
- InterActiveCorp (IACI +1.2%) has been upgraded to Outperform by Cowen.
- DuPont Fabros (DFT -2.3%) has been cut to Hold by Jefferies following its Yahoo disclosure.
- Veeco (VECO +8.2%) has been upgraded to Buy by UBS.
- Evolving Systems (EVOL +3.1%) has been upgraded to Buy by B. Riley.
Tuesday, Feb 119:49 AM
Tuesday, Feb 119:49 AM| 1 Comment
- Alcatel-Lucent (ALU -3.7%) has been cut to Equal Weight by Morgan Stanley four days after rallying in response to its Q4 report.
- CenturyLink (CTL +2.2%) has been upgraded to Outperform by Macquarie ahead of tomorrow's Q4 report.
- Sohu (SOHU -4.8%) has been cut to Underweight by Morgan Stanley a day after the company and subsidiary Changyou posted mixed Q4 results and offered weak Q1 guidance.
- Finisar (FNSR +3.9%) has been upgraded to Buy by Jefferies. Rivals JDS Uniphase and Oclaro have delivered market-pleasing earnings reports in recent weeks.
- Allscripts (MDRX +2.3%) has been upgraded to Buy by Maxim. Q4 results are due on Feb. 20.
- Xilinx (XLNX +1.6%) has been started at Buy by MKM.
Thursday, Feb 69:15 AM
Thursday, Feb 63:09 AM
Thursday, Feb 63:09 AM| 8 Comments
- Alcatel-Lucent (ALU) swung to a net profit of €134M in Q4 from a loss of €1.56B a year earlier, when the company took over a €1B in impairment and restructuring charges.
- Revenue dropped 4.1% to €3.93B, below forecasts of €4.18B.
- Adjusted operating profit €307M vs €115M, boosted by higher gross margins and cuts in fixed costs.
- Operating margin +5 percentage points to 7.8%, an improvement that the company expects to continue.
- Alcatel said it is on track to reach its 2015 targets of becoming cash-flow positive and sustainably profitable.
- Alcatel is in negotiations to sell an 85% holding in its enterprise phone business to existing partner China Huaxin after the investment company made a binding offer that gives the business an enterprise value of €268M ($362M).
- One question might be whether American authorities will approve the sale of the unit, which makes phone systems and other equipment for businesses, given the security concerns that the U.S. has over Chinese telecom gear.
- The deal is part of Alcatel's strategy to sell at least €1B in assets as it refocuses on its most profitable businesses.
- Alcatel won't pay a dividend for 2013. (PR)
Thursday, Jan 2311:22 AM
Thursday, Jan 2311:22 AM| 34 Comments
- The reaction to Nokia's (NOK -9.4%) Q4 report is very different from the one that followed its Q3 report, as investors worry about a 22% Y/Y drop in NSN sales (follows a 26% drop in Q3) and a 320 bps Y/Y drop in the division's op. margin to 11.2%. Excluding divestments/contract exits, sales fell 15%.
- NSN's mobile infrastructure sales were relatively healthy, dropping 12% Y/Y to €1.56B after falling 26% in Q3. But its services sales fell 22% to €1.54B, nearly on par with Q3's 23% drop.
- NSN's sales fell 21% in Europe, 13% in the Middle East & Africa, 23% in Asia-Pac, 38% in North America, and 35% in Latin America. They managed to rise 2% in Greater China (lifted by 4G buildouts).
- Also: The Here division (mapping/location services) saw a 9% Y/Y sales drop to €254M, and the Advanced Technologies unit (patent licensing/R&D) saw its sales fall 20% to €121M. However, Nokia predicts the business, which could have more negotiating leverage following the Microsoft deal, will produce €600M/year in sales.
- Mobile infrastructure rivals Alcatel-Lucent (ALU -2.4%) and Ericsson (ERIC -1.9%) are following Nokia lower on a down day for equities. Ericsson reports on Jan. 30, and Alcatel on Feb. 6.
- Nokia's Q4 results, details/guidance
Tuesday, Jan 211:42 PM
Tuesday, Jan 211:42 PM| 6 Comments
- Jefferies' Geroge Notter reports Infinera (INFN -11.5%) has lost a $100M Verizon contract for long-haul optical transmission hardware to Alcatel-Lucent (ALU +0.5%). Infinera was considered the favorite to win the deal, which will make Alcatel Verizon's second long-haul supplier. Ciena (CIEN +3.9%) is the other.
- Notter reports hearing "pricing was exceedingly low" for the deal, and that this, along with an intervention by Alcatel CEO Michel Combes, helped Alcatel win out even though Verizon's tech people are partial to Infinera's innovative DTN-X transmission platform (previous).
- Notter: "The anecdote serves as another reminder that the best technology doesn't always win in the Communications Infrastructure space ... Relationships and pricing can go a long way." Infinera is said to have invested heavily in trying to win over Verizon, which would have acted as a major reference account.
- Possibly motivating Alcatel to price aggressively: The company's optical transport sales fell 1.8% YY in Q3, and have been under pressure for a while. Alcatel reports on Feb. 6, and Infinera on Jan. 29.
Thursday, Jan 169:54 AM
Thursday, Jan 169:54 AM| Comment!
- H-P (HPQ +2.9%) has been upgraded to Buy by BofA/Merrill. Shares are again making new 52-week highs.
- Alcatel-Lucent (ALU -2.5%) has been cut to Equal Weight by Evercore ahead of its Feb. 6 Q4 report.
- Micron (MU) has been upgraded to Outperform by JMP. The DRAM/NAND giant received three bullish sell-side calls last Friday, shortly after the company posted a strong FQ1 beat.
- VMware (VMW +2.7%) has been upgraded to Buy by Citi ahead of its Jan. 28 Q4 report.
- SunPower (SPWR +3.4%) has been started at Overweight by Oppenheimer. Q4 results are due on Feb. 12.
- AOL (AOL +4.1%) has been upgraded to Buy by CRT Capital following news it's handing off Patch to a JV.
- NetSuite (N +1.1%) has been upgraded to Outperform by FBR.
- Gartner (IT +1.6%) has been upgraded to Buy by Goldman.
- Emulex (ELX +4.1%) has received a two-notch upgrade to Buy from BofA/Merrill.
- Verint (VRNT +3.6%) has been upgraded to Outperform by FBR.
- Vipshop (VIPS +3.1%) has been started at Buy by BofA/Merrill.
Monday, Jan 135:29 PM
Monday, Jan 135:29 PM| 1 Comment
- Three sources tell Bloomberg Alcatel-Lucent (ALU) is in talks to sell its struggling enterprise hardware/software unit to a group of potential buyers that includes Unify GmbH, a JV between Siemens (SI) and P-E firm Gores Group that provides unified communications products for businesses.
- The would-be buyers are said to be preparing second-round bids ahead of a possible March decision. One source thinks the Alcatel unit, which had 2012 sales of ~$1B, could sell for €250M ($343M).
- Reuters reported in November Alcatel, which has promised to shed €1B worth of assets by 2015, is thinking of selling the business. Last month, the company sold its LGS Innovations unit (provides networking hardware/software for U.S. federal agencies), for up to $200M.
Thursday, Jan 99:41 AM
Thursday, Jan 99:41 AM| 6 Comments
- Alcatel-Lucent (ALU -4.6%) has been cut to Hold by Deutsche, while rival Ericsson (ERIC -0.2%) has been upgraded to Buy. However, Morgan Stanley has started Alcatel at Overweight.
- Nvidia (NVDA -2.1%) has been cut to Hold by Canaccord a few days after unveiling its Tegra K1 app processors.
- Angie's List (ANGI +9.1%) has been upgraded to Strong Buy by Raymond James.
- Autodesk (ADSK +2.1%) has been upgraded to Overweight by Evercore.
- Chipmaker STMicroelectronics (STM -1.2%) has been cut to Sell by Deutsche, and CPU core licensing giant ARM (ARMH -5.5%) has been cut to Hold.
- EXFO (EXFO -8.3%) has been cut to Hold by TD Securities, and to Underperform by CIBC, after missing FQ1 estimates and providing soft FQ2 guidance.
- ASML (ASML +0.9%) has been started at Buy by ING.
Thursday, Dec 262013, 7:00 PM
Thursday, Dec 262013, 7:00 PM| 13 Comments
- Mobile analyst Chetan Sharma estimates the average U.S. mobile user has consumed 1.2GB/month of data this year, up 74% from a 2012 level of 690MB. Meanwhile, average global mobile data consumption is pegged at 240MB, up 71% from a 2012 level of 140MB.
- Sharma also observes data consumption is considerably higher among certain demographics: Swedish mobile broadband subs consume over 7GB/month, and some U.S. Android devices consume over 4GB/month.
- Contributing factors: Surging smartphone penetration rates, rapid 4G and (in emerging markets) 3G adoption, growing sales of large-screen smartphones, and the popularity of mobile video services (especially YouTube).
- AT&T recently mentioned it's still seeing 50% Y/Y growth in data consumption per smartphone user.
- The U.S. has a major lead on many foreign markets in both smartphone and 4G penetration. Thus, the data consumption growth seen in the U.S., along with the capacity crunches and network investments it has spawned, could be a sign of things to come overseas.
- Companies that derive a large percentage of their sales from mobile infrastructure and/or carrier Wi-Fi spending: ALU, NOK, ERIC, ALLT, PKT, RKUS, UBNT, DRWI, CRNT.
Friday, Dec 202013, 11:14 AM
Friday, Dec 202013, 11:14 AM| Comment!
- Alcatel-Lucent (ALU -1.3%) is selling LGS Innovations, a subsidiary that provides secure wireline/wireless networking hardware, network management/analytics software, and related services to U.S. federal agencies, to an investor group led by P-E firm Madison Dearborn for up to $200M in cash.
- Alcatel will be paid $100M up-front, and will receive additional payments (up to $100M) based on LGS' 2014 performance. The deal is expected to close in Q1 2014.
- The sale is part of Alcatel's efforts to unload €1B ($1.37B) in assets by 2015. Reuters reported last month Alcatel is thinking of selling its struggling enterprise hardware/software ops, and has hired Lazard to help find a buyer.
Tuesday, Dec 102013, 2:55 PM
Tuesday, Dec 102013, 2:55 PM| 2 Comments
- During a UBS conference talk, AT&T (T -0.5%) CEO Randall Stephenson promises his company will bring last-mile fiber services to markets other than Austin. AT&T has already responded to Google's Austin Fiber announcement by promising to offer 1Gbps services to residents, but has been light on details.
- Stephenson doesn't say where AT&T will offer similar services, but does assert "there are lots of other opportunities around the country," and that "the economics of fiber deployment are really starting to look good in communities like Austin."
- Any large-scale residential fiber rollout could require AT&T to ramp its capex, which the company has generally been loathe to do in recent years.
- Separately, Stephenson notes AT&T is seeing tough competition in the low-end mobile market; the carrier has lost prepaid share this year, though its Q3 numbers suggest it's turning a corner following the launch of its Aio and GoPhone plans.
- Also: In a comment that suggests AT&T (like Verizon) may need to step up its 4G infrastructure spending, Stephenson declares his company is still seeing 50% Y/Y growth in data consumption per smartphone user, thanks to heavy video use.
- With AT&T and Verizon ahead of many foreign carriers in seeing large-scale 4G uptake, their data traffic issues could be a sign of things to come. A pickup in mobile capex to address the issue would benefit infrastructure vendors Nokia (NOK), Alcatel-Lucent (ALU), and Ericsson (ERIC), as well as carrier Wi-Fi vendor Ruckus (RKUS).
Thursday, Dec 52013, 3:54 PM
Thursday, Dec 52013, 3:54 PM| 5 Comments
- As predicted by many investors and analysts, Alcatel-Lucent (ALU +3.6%) is returning to France's benchmark CAC-40 index. NYSE Euronext says the telecom equipment giant will be added back on Dec. 23, and replace chipmaker STMicroelectronics (STM -1.2%).
- Alcatel, buoyed by a debt restructuring and improving margins, has made fresh 2-year highs today, and is now up 224% YTD. STM, which has been posting Y/Y revenue drops and contending with the unraveling of its ST-Ericsson mobile chip JV, is up 5% YTD, but well off its summer highs.
Friday, Nov 292013, 9:56 AM
Friday, Nov 292013, 9:56 AM| 14 Comments
- Nearly a year after Alcatel-Lucent (ALU +2%) was thrown out of France's benchmark CAC-40 index, analysts and fund managers increasingly think it's just a matter of time before the telecom equipment giant returns, now that a debt refinancing deal, job cut plans, and improving sales in certain business units have left it on much better financial footing.
- The NYSE-Euronext committee responsible for handling the CAC-40 is expected to meet next week; it typically judged eligibility based on a company's trading volume and adjusted free-float market cap. Reuters' data indicates Alcatel will have the 30th-largest free-float among French companies once a pending capital raise is finished.
Tuesday, Nov 192013, 9:36 AM
Tuesday, Nov 192013, 9:36 AM| 6 Comments
- "Sources familiar with Nokia's (NOK -0.7%) plans" tell the WSJ the company "won't pursue an acquisition of parts of Alcatel-Lucent (ALU +0.5%)" after weighing its options. Nokia is said to have considered whether Alcatel's router and mobile infrastructure units would be good fits for NSN, but has chosen not to pursue formal talks for now.
- Reuters reported in September Nokia is "discussing internally" whether to pursue a tie-up with Alcatel. Alcatel shares have rallied more than once on hopes Nokia would make a bid for part or all of the company.
- Alcatel's routing division, which has been taking share thanks in part to a successful entry into the core router market, had Q3 sales of €580M (+7% Y/Y). The mobile infrastructure division, which has been seeing 4G strength and 2G/3G weakness, posted Q3 sales of €1.196B (+13% Y/Y).
- Nokia has limited product overlap with Alcatel's router unit, but enormous overlap with its mobile infrastructure unit.
- Previous: Nokia-Microsoft deal approved
Wednesday, Nov 132013, 8:34 PM
Wednesday, Nov 132013, 8:34 PM| 5 Comments
- Cisco's (CSCO) dispiriting Jan. quarter guidance and Oct. quarter order data has produced an AH selloff in enterprise IT and telecom equipment names, as well as a couple of the companies supplying them. NetApp's below-consensus guidance might not be helping either.
- HPQ -2.1% AH. IBM -1.1%. ALU -2%. FFIV -1.9%. CIEN -0.9%. CAVM -3%. BRCM -1.3%.
- Cisco's slumping FQ1 service provider (-13% Y/Y) and emerging markets (-12%) orders are bound to fuel concerns about carrier capex and macro trends. At the same time, it's worth noting Juniper and Alcatel-Lucent have been seeing better router sales to carriers (though not to Asia), and that Huawei has been doing better in emerging markets.
- The rest of Cisco's order data for major regions and customer groups was relatively better, but not exactly encouraging. Americas orders -2%, EMEA -4%, Asia-Pac (hurt by emerging markets weakness) -9%. Enterprise orders +2%, commercial (SMBs) +1%, public sector -1%.
- Switch sales (31% of revenue) rose 3% Y/Y, while routers (17% of revenue) fell 1%. Collaboration rose 1%, and service provider video fell 14% due to set-top weakness. Cisco's ASR 9000 edge router line, which EZchip (EZCH) supplies network processors for, grew 20% in FQ1 vs. 43% in FQ4.
- Data center (UCS servers) had another strong quarter, growing 44%, but still only accounts for 5% of revenue. Wireless (dominated by Wi-Fi gear) grew only 8% after growing 32% in FQ4 (could be a negative for ARUN and RKUS).
- John Chambers was asked on the CC (transcript) if the NSA spying uproar was affecting Cisco. He admitted it's a problem in China, but denied it was a major issue elsewhere.