ALU has many contracts signed for Light Radio as well as Core Routers....
this will add hugely to Revenues ,,,the 800 million in cost cuts will take alu to profits,,,
Patent leasing revenue will also help....
hopefully they give us soemthing soon on the patents they announced that back in ferbruary and were still waiting for some deals. I know Ben said in the last call that they could have made some patent deals but he felt they were not good enough, let's hope him and tufano know what there doing on this one and don't drop the ball.
I would love to see them cut 30% of R&D. Their is no reason to be spending billions on R&D when the company is struggling to survive. It will take years to get our investment back from the R&D inovations. I understand you have to invest for the future but the amount ALU spends is twice in the industry. If we could just get the cash burn under control this stock would see 3.00 again. 25K employees in R&D is excessive and their has to be a lot of waste going on. PLEASE Ben, act before its too late. I am sooooo under water I get depressed everyday the market opens.
R&D is the lifeblood of the company bell labs is what built the old LU (Lucent) into a powerhouse. Where do you think the x7950 router came from and light-radio and vecotring technology and on and on...the whole HLN came also from Bell Labs, now I do agree 25k is a lot and I think they could scale back about 10% there but thats it, the cuts that need to made are in sg&a and getting rid of loss making business and such, submarine and enterprise come to mind.
If I was Cisco I would buy ALU for the following reasons:
1. Cisco cannot repatriate their $40B from offshore accounts because Cisco will have to pay about $7B tax in the US, so it is better for Cisco to spend their money on an offshore company like ALU.
2. ALU is a direct competitor to Cisco where ALU has recently won the bidding on RFP of California State University over Cisco. This is only the beginning, for more RFPs will be won.
3. ALU has been winning numerous contracts since September 2012.
4. ALU has the largest shares of China Mobile contract by a non-Chinese company and due to Huawei's situation (banned on espionage) in US and Cisco's situation (banned on espionage) in China ALU can only benefit from these two misfortunes.
5. ALU is expanding into the fastest growing developing market of Africa.
6. ALU has vast array of products such as optics, submarine systems, mobile - LTE, VoIP, multimedia, IP products - MPLS, core network switch and routers, ATM
7. ALU has 45,000 patents (30,000 + 15,000 pending)
8. Recession in Europe will be over by 2014 (hopefully Greece will be kicked out by then -Hurray!)
9. ALU currently worth 40% of its book value (great bargain) with revenue stream of close to 40% of Cisco.
I think ALU getting bought-out by Cisco is imminent!
Cisco also has a lot of spare cash. Regulatory approval may be the only hurdle. ALU is a French company but Lucent is an American subsidiary. Also, Other threatened communication companies may put pressure on regulators not to allow Cisco-ALU merger. However, I think, such a merger is a must to fight the growing influence of Huawei and Samsung in this globalized world, I hope John Chambers is toying with this idea!!
When Ford went under $1.00 things looked darkest and most feared the worst.
Those of us that could see beyond this realized that the right people were in place, and the right plans were being executed.
ALU has the product.
The plan and leadership seem suspect at times.
I'm betting on a turnaround.
the difference between ford and alu is at ford they had competent people
from what we've seen so far alu mgmt is not even close there
they took a great company and run it into the ground
until the management changes alu can't get out of this death spiral
hopefully they won't be in the 10 cents by then..