Alcatel Lucent SA (NYSE:ALU)’s 2013 Ascent Continues
Alcatel Lucent SA (ADR) (NYSE:ALU) shares have outperformed so far, this year. The stock’s price has almost doubled from what it stood at on 31 December 2012. It rose from $1.39 to $2.62 and had touched a 52-week new high of $2.64. The company announced very strong quarterly results which drove the stock price higher. Post the hearty results, most analysts are expecting the company to make a turnaround.
In its latest quarter, ALU reduced its debt, thus improving its bottom-line. There was also a dip in operating costs which resulted in improved margins. In addition, the company is expecting to launch more than 200,000 active LTE base stations in China via China Mobile. This will help in balancing-out the weakness that the company is currently experiencing in Europe. Once the voice-over-LTE launch has been completed in the U.S, the company will experience a steady growth in its hardware network sales.
The Qualcomm connection
Alcatel Lucent SA (NYSE:ALU) has also developed an alliance with Qualcomm Technologies. Via this agreement, small 3G, 4G and Wi-Fi base stations will be developed. These will prove beneficial in spurring the movement on the multi-technology platform. ALU’s next generation LightRadio will be incorporating QCOMM’s Small-Cell chipsets. With the influx of tablets and smartphones in the market the demand for mobile data has also been on the rise.
In this high-demand scenario, the ALU, Qualcomm R&D partnership will prove to be beneficial to both companies. The one patch that the company still has to clear is that its cash-flow has not yet turned positive.
The company’s submarine business has been pretty weak though the signs of a turnaround have been encouraging. Alcatel Lucent SA (NYSE:ALU) is based in France. The company provides voice, video and data solutions to businesses, service providers and governments across the world. It is also involved in fixed, mobile, IP, applications, technologies and various other related services.