Alcatel Lucent SA (NYSE:ALU) trying all it can to get back on path
In Thursday’s trading, Alcatel Lucent SA (NYSE:ALU) dipped 2.55%. The opening price of the shares was $2.71 which touched an intraday high of $2.72 and dropped to close at $2.67. More than 0.275M shares were traded in Thursday’s trading session while the average volume of shares traded over a period of 30-days was 16.54 million. The company has a market cap of $6.06 billion.
A person in the know said that the company has stepped-up efforts to bring down the rate on around $2.1B of loans that it had obtained in January. Apart from these measures, ALU has a new Chief executive Officer, Michel Combes. On 30 July, the company said that it had topped analysts’ projections and it has embarked upon several cost-cutting measures.
Another development is that Qualcomm has agreed to buy a minority stake in the company. The operating profit for the second quarter, with the exclusion of impairment and reorganization costs was $32M (24M Euros). There was a 1.9% rise in sales to 3.61B Euros. On an average, analysts had projected a revenue decline and a loss.
The Paris-based Alcatel Lucent SA (NYSE:ALU) provides telecommunications solutions to businesses, service providers and governments across the world. It offers services such as data, voice and video services. It is also involved in fixed, mobile, optics and VoIP services and applications. ALU operates in three distinct business segments- Software, networks, Solutions and Services and Enterprise.
The Networks segment operates in the Internet Protocol router market and manufactures as well as markets optical networking equipment. The software segment supplies consultation integration, outsourcing, maintenance, and transformation amongst other things.
The Enterprise segment supplies products, services and solutions to various companies that use them to improve collaboration across customers, employees and partners. The company has more than 25 wholly-owned subsidiaries.