Skip Links

Network World

Brad Reese

No real improvement in the outlook for Alcatel-Lucent

By Brad Reese on Mon, 12/15/08 - 10:31pm.
Newsletter Signup

Alcatel-Lucent and RBC Capital Markets

Despite Alcatel-Lucent's planned job cuts and new focus on three market sectors (link to story), some analysts believe the equipment maker still has a ways to go to get back into a healthy state. RBC Capital Markets Managing Director - Mark Sue believes there's no real improvement in the outlook for Alcatel-Lucent, and if anything the market for telecom equipment could decline by between -8% and -12% for 2009 in constant currency.

Mark SueAccording to Sue, "Risks remain as the company executes on its plans and reduced demand may be accentuated by increased price competition.

"Furthermore, Alcatel's new strategy change may be viewed as only minor tweaks as the company continues to invest in money losing ventures such as WCDMA.

"In particular, Alcatel plans to rationalize spending on CDMA and GSM and find a partner for WiMax, CEP, and non-IMS based fixed line products. Alcatel plans to boost spending in LTE, and WCDMA nonetheless, although we believe these new growth areas are not immune to price competition. Finding a partner for WCDMA may have been an option investors have been considering."

Sue concluded, "Alcatel-Lucent will focus on key areas of IP, Optical, mobile and fixed broadband going forward. Strict focus may enable the company to emerge as a profitable entity with steady cashflow. Gross margins remain industry low at 32.5% and supply chain improvements may help. Quicker divestiture of legacy business may quicken the process but may inevitably upset key customers."

Related stories:

Alcatel-Lucent cuts jobs, focuses attention on three sectors

Will Alcatel-Lucent announce killing off its WiMAX division this Friday?


Is Alcatel-Lucent "tracing the footsteps" of the once mighty Nortel Networks?

Brad Reese
BradReese.Com Cisco Refurbished

Quotes on New Cisco Equipment

One year warranty on refurbished:

Cisco Aironet

Cisco Power Supplies

Cisco VoIP Gateways

One year warranty Refurbished Cisco

Brad's Favorite Top 5 Picks
# 1. Good news for Cisco: Adults willing to forgo sex to keep their Internet access!
# 2. Warning to penny stock Nortel: Do reverse stock split or face NYSE guillotine
# 3. HP ProCurve switched layer 2 through layer 7 port shipments grow 4 times industry rate
# 4. Will Alcatel-Lucent announce killing off its WiMAX division this Friday?
# 5. Cisco's new consumer push: It seems to me I've heard that song before
Brad Reese on Cisco Story Archives Brad Reese on Cisco Story Archives

Cisco Tools

Cisco vs. Competitor Lab Tests

One Year Warranty On All Cisco Repair

Cisco Technical Forums

  

Post new comment

The content of this field is kept private and will not be shown publicly.
  • You can use BBCode tags in the text.
  • Lines and paragraphs break automatically.
  • Allowed HTML tags: <p> <strong> <i> <br /> <br> <ul> <ol> <li> <dl> <dt> <dd> <blockquote>

More information about formatting options

CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Welcome, visitor. Register Log in
About Brad Reese on Cisco

Brad Reese cofounded BradReese.Com Cisco Refurbished, which enables affordable Cisco networks globally by assuring customer satisfaction with guaranteed one year warranties on both Cisco Repair as well as Refurbished Cisco.

Don't be shy, contact Brad Reese online or call him Toll Free:

866-864-0506

International callers may wish to call Brad by dialing:

850-364-4115

Archives
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
Categories
Allan Sulkin - founder and president of enterprise communications systems and applications consultancy - TEQConsult Group
Careers
Chambers and his Board of Dirctors urged Cisco shareholders to vote NO
China networking marketplace
Christian Brothers Investment Services notice
Cisco
Cisco F1Q10 earnings call
Cisco TelePresence
Cisco TelePresence revenue
Cisco engineer - Kevin Murphy
Cisco first quarter net product sales in emerging markets by fiscal year
Cisco has now become the target of unflattering employee reviews
Cisco is well known as being one of the best companies to work for
Cisco stock chart for the last 10 years
Cisco's 1st Quarter Other Product Revenue By Fiscal Year
Cisco's F1Q10 earnings call
Cisco's Form 10-Q
Cisco's new Stock Incentive Plan as amended and restated
Cisco's upcoming annual stockholder's meeting
Daniel Berg - Skype's CTO
Data Center
Dave Donatelli - HP executive vice president and general manager of enterprise servers and networking
Did Cisco take its eye off the ball in emerging markets
Do you think Cisco can effectively compete against Huawei
FNF
Father of SIP - Jonathan Rosenberg
Financial windfall for Cisco shareholders
Flexible NetFlow
Flip video camcorder
Flip video camcorder revenue
Gilbert Public School's $3.5 million network upgrade to HP
Gilbert Public Schools Board President - Thad Stump
Gilbert Public Schools assistant superintendent - Barb VeNard
Glassdoor.com is financially backed by 2 of the leading Silicon Valley venture capital firms - Benchmark Capital and Sutter Hill Ventures
HP also bid on the project
HP purchasing 3Com
HP's Converged Infrastructure strategy
HP's acquisition of 3Com
Huawei
John Chambers has had some good paydays as the CEO of Cisco
LANs / WANs
NBAD
NetFlow
NetFlow add-ons
Network Behavior Anomaly Detection
Network Management
Popular online career and workplace community - Glassdoor.com
ProCurve ONE alliance
Proposal submitted by Christian Brothers Investment Services
Proxy resolution during Cisco's annual meeting
Rosenberg is now Skype's Chief Technology Strategist
SMB
Say on executive pay
Security
Skills and abilities of Skype CTO Daniel Berg
Skype announced Roseberg jumped ship from Cisco
Skype's Chief Technology Strategist - responsible for Skype's overall architecture and technology strategy
So how does one verify that Glassdoor's information is really from Cisco employees?
Software
Superintendent Dave Allison
TelePresence revenue
VoIP / Convergence
When Cisco used its common stock to buy Linksys and Pure Digital
Who's right about Cisco's work environment - Fortune or Glassdoor?
Wireless / Mobile
On The Web
Twitter