Mobile IoT Authors: Yeshim Deniz, Zakia Bouachraoui, Pat Romanski, Elizabeth White, Carmen Gonzalez

News Feed Item

Post-Earnings Scrutiny - Alcatel-Lucent

Editor Note: For more information about this release, please scroll to bottom.

LONDON, August 7, 2014 /PRNewswire/ --

Investor-Edge.com has issued complimentary post-earnings research on Alcatel-Lucent (NYSE: ALU). The company was featured in the headlines on Thursday, July 31, 2014, for reporting its earnings result for the second quarter 2014. Key highlights of the Company's Q2 announcement were a 5.0% year-on-year growth in group revenues (excluding Managed Services), and gross margin improvement of 140 basis points year-over-year to 32.6%. Our free coverage report can be accessed at:


Earnings Overview  

During the reported quarter, the Company's sales from the Asia-Pacific region were up significantly by 25.2% year-over-year to €667 million, driven by LTE network rollouts in China. Alcatel-Lucent is an LTE network vendor for China Mobile, the world's largest mobile operator, and the Company had won a contract of up to €750 million to help China Mobile to move toward to an all-IP, "ultra-broadband" network. Sales from the European region were up 6% year-over-year (excluding Managed services). The Company also recorded a 2.6% year-over-year decline in sales from North America, a mid single digit decline in MEA (Middle East and Africa) region, and continued to see challenges in the CALA (Caribbean and Latin America) region. The company's adjusted operating income increased three folds to €136 million from €45 million in Q2 2013. During Q2 2014, positive segment operating cash flow was at €96 million, compared with negative segment cash flow of €41 million in Q2 2013. This improvement was mainly a result of an increase of the Access segment operating income. The free research on ALU can be downloaded as in PDF format at:


Alcatel-Lucent is benefiting from its "The Shift Plan" (announced in June 2013) with €94 million of fixed cost savings in Q2 2014 and cumulative fixed cost benefits of €572 million till date. The company also announced its intent to explore the capital opening for its subsidiary Alcatel-Lucent Submarine Networks (ASN) through an IPO, to raise funds to strengthen company's leadership in telecom submarine systems and also diversify into the Oil & Gas market, to increase its visibility and to optimize capital allocation.

CEO of Alcatel-Lucent, Michel Combes, stated in the earnings press release that the improvements achieved in the second quarter makes it the fourth consecutive quarter to achieve consistent delivery under "The Shift Plan". Mr. Combes added that the company can close the first phase of its transformation as a result of the upcoming reimbursement of senior secured loan in August 2014 and the subsequent recovery of the full ownership of its patents. Moving forward, the CEO sees the company embracing the second phase of its turnaround story by focusing on innovation, transformation, and growth, while maintaining its commitment to return to positive free cash flow in the upcoming year.

The Paris-based Telecom equipment company's quarterly revenues grew 0.7% year-on-year at constant exchange rates and comparable perimeter to €3.28 billion, in line with the Bloomberg analysts' expectation. Alcatel-Lucent's reported net loss of €298 million, or €0.11 per share, compared with a net loss of €885 million, or €0.37 per share during the second quarter of 2013, with the improvement mainly explained by an impairment charge of €552 million in Q2 2013. Analysts at Bloomberg expected a net loss for the second quarter at €84.24 million or €0.02 per share. Sign up and read the free analyst's notes on ALU at:


Stock Performance  

On Thursday, July 31, 2014, after the earnings release, Alcatel-Lucent's shares plummeted 10.68% to close the session at $3.43. However, at the last close, Wednesday, August 06, 2014, the company's shares gained 2.17% to end the day at $3.30. The company's shares oscillated between $3.22 and $3.34 during the trading session. A total of 5.84 million shares were traded, lower than its three months average volume of 9.35 million shares. Alcatel-Lucent's shares have fallen by 2.08% in the previous three trading sessions, 10.81% in the last one month, and 25.00% on YTD basis. The company's stock is trading below its 50-day and 200-day moving averages. Alcatel-Lucent's 200-day moving average of $3.95 is above its 50-day moving average of $3.69. The stock has a Relative Strength Index (RSI) of 32.20. Visit Investor-Edge and access the latest research on ALU at:


Sneak Peek to Corporate Insider Trading  

In the last one month, Alcatel-Lucent has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on ALU is available at:


About Investor-Edge.com 

At Investor-Edge, we provide our members with a simple and reliable way to leverage our economy of scale. Most investors do not have time to track all publicly traded companies, much less perform an in-depth review and analysis of the complexities contained in each situation. That's where Investor-Edge comes in. We provide a single unified platform for investors' to hear about what matters. Situation alerts, moving events, and upcoming opportunities.




1. This is not company news. We are an independent source and our views do not reflect the companies mentioned.

2. Information in this release is produced on a best efforts basis by Rohit Tuli, a CFA charterholder. The content is then further fact checked and reviewed by an outsourced research provider. However, we are only human and are prone to make mistakes. If you notice any errors or omissions, please notify us below.

3. This information is submitted as a net-positive to companies mentioned, to increase awareness for mentioned companies to our subscriber base and the investing public.

4. If you wish to have your company covered in more detail by our team, or wish to learn more about our services, please contact us at pubco [at] http://www.investor-edge.com.

5. For any urgent concerns or inquiries, please contact us at compliance [at] http://www.investor-edge.com.

6. Are you a public company? Would you like to see similar coverage on your company? Send us a full investors' package to research [at] http://www.investor-edge.com for consideration.


Content is researched, written and reviewed on a best-effort basis. This document, article or report is prepared and authored by Investor-Edge, represented by Rohit Tuli, CFA. An outsourced research services provider has only reviewed the information provided by Investor-Edge in this article or report according to the procedures outlined by Investor-Edge. Investor-Edge is not entitled to veto or interfere in the application of such procedures by the outsourced provider to the articles, documents or reports, as the case may be.


Investor-Edge makes no warranty, expressed or implied, as to the accuracy or completeness or fitness for a purpose (investment or otherwise), of the information provided in this document. This information is not to be construed as personal financial advice. Readers are encouraged to consult their personal financial advisor before making any decisions to buy, sell or hold any securities mentioned herein.


Investor-Edge is not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted by Investor-Edge whatsoever for any direct, indirect or consequential loss arising from the use of this document. Investor-Edge expressly disclaims any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Investor-Edge does not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.


SOURCE Investor-Edge

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
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.
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
Whenever a new technology hits the high points of hype, everyone starts talking about it like it will solve all their business problems. Blockchain is one of those technologies. According to Gartner's latest report on the hype cycle of emerging technologies, blockchain has just passed the peak of their hype cycle curve. If you read the news articles about it, one would think it has taken over the technology world. No disruptive technology is without its challenges and potential impediments t...
If a machine can invent, does this mean the end of the patent system as we know it? The patent system, both in the US and Europe, allows companies to protect their inventions and helps foster innovation. However, Artificial Intelligence (AI) could be set to disrupt the patent system as we know it. This talk will examine how AI may change the patent landscape in the years to come. Furthermore, ways in which companies can best protect their AI related inventions will be examined from both a US and...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Bill Schmarzo, Tech Chair of "Big Data | Analytics" of upcoming CloudEXPO | DXWorldEXPO New York (November 12-13, 2018, New York City) today announced the outline and schedule of the track. "The track has been designed in experience/degree order," said Schmarzo. "So, that folks who attend the entire track can leave the conference with some of the skills necessary to get their work done when they get back to their offices. It actually ties back to some work that I'm doing at the University of San...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...
Dynatrace is an application performance management software company with products for the information technology departments and digital business owners of medium and large businesses. Building the Future of Monitoring with Artificial Intelligence. Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more busine...