Welcome!

Mobile IoT Authors: Liz McMillan, Elizabeth White, Yeshim Deniz, Zakia Bouachraoui, Pat Romanski

News Feed Item

Alcatel-Lucent's Sale on Heels of Acquisition

NEW YORK, January 17, 2013 /PRNewswire/ --

After acquiring wavelength-selective switch (WSS) developer Capella Photonics, Alcatel-Lucent is looking into selling one of its businesses to inject cash into the conglomerate.

The recently concluded 2013 Consumer Electronics Show featured Alcatel-Lucent's (NYSE: ALU) [Full Research Report](1) Connect Program, a collection of 12 cloud-based multi-platform service concepts aimed towards new innovation, highlights of which included interactive digital signage for public places and retail shopping. Although this new outlook contributed to the recent upgraded rating by Goldman Sachs, Alcatel is still in dire need of a cash infusion.

Extending the Deadline

Despite their recent acquisition of privately-held wavelength-selective switch (WSS) developer Capella Intelligent Subsystems Inc., one of the few independent vendors of WSS subsystems for reconfigurable optical add/drop multiplexers in the optical communications market, Alcatel is still on the looking for its holy grail. Alcatel says the acquisition was "strategic to our business" and was "not considered material."

Analysts aren't sure of Alcatel's fate in 2013, according to a report from Daily Finance. The target share price is in fact below 15% of where the stock is trading right now, suggesting tough times will continue for the telecommunications equipment company even if they reduce their losses this year.

Some debt refinancing from a credit facility from Credit Suisse and Goldman Sachs helped buy Alcatel enough time to get in better shape, which is the cause of optimism coming into this year. However, the real challenge is to overcome weak capital spending by its customers and keep up with competition from other industry players, in order to establish a strategic vision for the future, the report said.

Shopping for a Buyer

A report from International Business Times suggests that the number of companies have shown interest in Alcatel's submarine cable business, which could be a solution for the company's financial woes.

The business is proven to be profitable for them, having double digit margins and a 40 percent market share, as told to Bloomberg. Interested companies include investment funds Permira Advisers and PAI Partners, French sovereign fund FSI, and France Telecom. The sale is estimated to generate as much as 800 million euros or $1.1 billion for Alcatel.

The unit is part of the company's optics-equipment business, and sales at the optics unit fell 18 percent in the third quarter to only 480 million euros. In comparison, Alcatel's total revenue fell by only 2.8 percent in that period. Meanwhile, another Alcatel unit is also seen to be put up for sale, focused on selling telecommunications equipment to businesses, valued at 200 million euros.

Reference Links:

(1)   The Full Research Report on Alcatel-Lucent - including full detailed breakdown, analyst ratings and price targets - is available to download free of charge at:

http://www.nationaltradersassociation.org/r/entire_report/www.NationalTradersAssociation.org/r/gov/82bb_ALU

Consider National Traders Association

Tired of hearing about the latest, greatest trade opportunity... only to realize that the ship has long sailed? You need a strong, informative community in your arsenal. Join the group that has been consistently identifying momentous situations as they develop -- long before they become the next top news on major financial networks.

SOURCE National Traders Association

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

IoT & Smart Cities Stories
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
Founded in 2000, Chetu Inc. is a global provider of customized software development solutions and IT staff augmentation services for software technology providers. By providing clients with unparalleled niche technology expertise and industry experience, Chetu has become the premiere long-term, back-end software development partner for start-ups, SMBs, and Fortune 500 companies. Chetu is headquartered in Plantation, Florida, with thirteen offices throughout the U.S. and abroad.
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
DXWorldEXPO LLC announced today that All in Mobile, a mobile app development company from Poland, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. All In Mobile is a mobile app development company from Poland. Since 2014, they maintain passion for developing mobile applications for enterprises and startups worldwide.
Nicolas Fierro is CEO of MIMIR Blockchain Solutions. He is a programmer, technologist, and operations dev who has worked with Ethereum and blockchain since 2014. His knowledge in blockchain dates to when he performed dev ops services to the Ethereum Foundation as one the privileged few developers to work with the original core team in Switzerland.
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER gives detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPOalso offers sp...
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or per...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time t...