Alcatel shares tumble on revenue outlook
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Alcatel-Lucent SA fell nearly 9 percent Thursday after the telecommunications equipment maker slashed its full-year revenue growth forecast and said it expects third-quarter operating profit to be "around break-even."
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(InfoWorld) - Alcatel-Lucent's revenue fell for the fourth quarter and the company plunged into loss. The performance was disappointing, but theÂ long-term prospects of the mergerÂ of Alcatel and Lucent Technologies remain positive, the company said. Fourth-quarter revenue dropped 16 percent year-on-year on a comparable basis, to â¬4.42 billion ($5.83 billion as of Dec. 31, the last day of the period reported) from â¬5.25 billion, while revenue for the full year fell to â¬18.25 billion from â¬18.57 billion. Although the merger was onlyÂ completed at the end of November, the company provided pro-forma figures as if the merger had taken place on Jan. 1, and restated earlier figures on a comparable basis. On that basis, the company made a net loss of â¬618 million in the fourth quarter, compared to a net profit of â¬381 million a year earlier. For the full year, net profit fell to â¬522 million, down from â¬1.67 billion on a comparable basis the previous year. The disappointing performance was due to uncertainty among customers and staff about the outcome of the merger, and to a highly competitive market in North America during the fourth quarter, the company said. As it proceeds with the integration of Alcatel and Lucent, the company expects to realize cost savings of â¬600 million this year, and a total of â¬1.7 billion in cost savings within three years of the merger. The savings will come from optimization of its supply chain, and the elimination of duplicate resources and products, and around 12,500 jobs. Post-merger, the company makes around three-quarters of its revenue from carrier products. Revenue of â¬1.47 billion came from fixed-line telecommunications equipment in the fourth quarter, â¬1.24 billion from wireless equipment, and â¬510 million from converged products. Enterprise networking equipment accounted for â¬410 million, and services for â¬740 million. Demand was particularly strong for enterprise IP telephony equipment in Europe, the company said.
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Alcatel-Lucent's revenue fell for the fourth quarter and the company plunged into loss. The performance was disappointing, but theÂ long-term prospects of the mergerÂ of Alcatel and Lucent Technologies remain positive, the company said.
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Alcatel-Lucent, the Franco-American telecommunications equipment maker, posted a loss Friday of about $3.8 billion for the fourth quarter, said it would scrap its 2007 dividend and predicted a rocky 2008.
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Texas Instruments Inc , the world's biggest maker of chips for mobile phones, narrowed its second-quarter revenue and earnings forecast on Monday and said calculator sales would be lower than expected.
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Recently-merged Alcatel-Lucent  is stepping up job cuts to 12,500 after dipping into a fourth quarter loss and forecast a sales drop in the first quarter as tough trading and uncertainties related to the tie-up took their toll.
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US aluminium giant Alcoa warns its third quarter profits will fall below expectations, blaming restructuring costs, a fire and a strike.
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(InfoWorld) - Palm Inc. has lowered its financial forecast for the current quarter because of delays in bringing its latest Treo smartphone to market. Palm on Monday lowered its revenue forecast for its fiscal 2007 second quarter, which ends Dec. 1, to a range of US$390 million to $395 million from an estimate made Sept. 21 of $430 million to $450 million. It also pared its earnings forecast to a range of $0.10 to $0.11 per share from the earlier estimate of $0.15 to $0.18. Not counting special items, the estimate has been trimmed to $0.15 to $0.16 a share, from an earlier $0.20 to $0.23. Although its line of smartphones is selling well and the new Treo 750v introduced in Europe is popular, Palm hasn't been able to get the Treo 750 introduced in the U.S. as planned, according to the company. "Our Q2 FY07 revenue will be constrained by a delay in certification of a key product. We now expect to start shipping the Treo 750 for the U.S. market early in Q3 FY07," Palm President and Chief Executive Officer Ed Colligan said in a prepared statement. Palm (NASDAQ:PALM) waited until the market closed Monday to announce the news. After closing for the day at $15.37, about three hours later its stock had fallen by $0.64 in after-hours trading.
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The smart phone maker reported a loss in its fiscal second quarter as revenue declined and expenses rose.
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Shares of Accredo Health Inc. ACDO.O  sank in trade before the opening bell after the provider of  pharmacy and treatment services for patients with chronic  illnesses slashed its fiscal 2005 profit forecast.
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Newly merged telecommunications equipment maker  Alcatel-Lucent has reported a slump in underlying profits last year and ramped up planned job cuts to 12,500 or 15.6 percent of the workforce.
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Alcatel-Lucent cut its revenue forecast for the year on Thursday, underscoring the challenges the newly merged company faces in a highly competitive communications equipment industry.
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Wall Street stocks fell sharply on Friday after a cautious earnings outlook at American Express (NYSE:AXP) added to worries that US consumer spending is headed for a sharp slowdown.
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Alcatel-Lucent warned Thursday that after talks with North American mobile operator clients about their spending plans, third quarter sales growth was expected to be weak and would &quot;negatively impact&quot; profitability.
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Freshly merged Alcatel-Lucent  is  stepping up job cuts to 12,500 after lurching into a fourth  quarter loss and forecast a first-quarter sales dip as tough  trading and uncertainties from the tie-up take their toll.
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Plus: Alcatel outlook weak...Cisco profit climbs...Time Warner lowers earnings target...Electronic Arts lowers outlook.
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Alcatel shareholders have been urged by a French advisory group to reject the proposed merger with Lucent Technologies SA, citing unfavorable financial and corporate governance terms.