Investopedia: Nokia Buys Out Siemens, Are Phones Now On The Block?

There was never really a question as to if Nokia (NYSE:NOK) and Siemens (NYSE:SI) would unwind their 50/50 partnership in Nokia Siemens Networks. Siemens had made it quite clear that they were considering all options for monetizing their stake and continuing their own plan to streamline operations. What's more, it was becoming increasingly clear that there was minimal third-party interest and that going the IPO route wasn't likely to realize full value. Curiously, though, Siemens has chosen to sell its stake in the venture to Nokia at a pretty undemanding valuation.

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Investopedia: Could Alcatel-Lucent's Restructuring Boost Ericsson Further?

At the risk of sounding like I'm looking to bash Alcatel-Lucent (NYSE:ALU), I have been thinking more about the company's recently-announced restructuring efforts and wondering if they will help the company as much as they may help the company's rivals. The “law of unintended consequences” is real, and though there are sound motives for the company's moves, it nevertheless could backfire. To that end, I have to wonder if Ericsson (Nasdaq:ERIC) and Huawei are poised to reap the most benefit from Alcatel's self-improvement plans.

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http://www.investopedia.com/stock-analysis/062113/could-alcatellucents-restructuring-boost-ericsson-further-alu-eric-jnpr-cien.aspx

Investopedia: Will A New Alcatel-Lucent Plan Lead To Better Results?

Stop me if you've heard this before – Alcatel-Lucent (NYSE: ALU) has a bold plan to cut costs, refocus the business, and return the company to profits and prosperity. To be fair, the new CEO does deserve a chance to show if his plan can/will work, and the broad strokes outlined today make sense. Even so, this is Alcatel-Lucent and the telecom equipment industry we're talking about, and success is far from guaranteed.

Cut Costs, Cut Businesses
 The centerpieces to the new plan are deep cost cuts and a sharp focus on businesses where Alcatel-Lucent can compete effectively in the coming years.

While the company had been targeting about EUR 500 million in cost cuts by 2015, that target has been doubled. Management intends to achieve this by increasing its direct channel focus with sales and marketing and reducing the scope of its R&D. That's an interesting move, particularly given how many Alcatel-Lucent bulls try to point to the company's patent estate as a store of future value. While it makes ample sense to reduce the scope of R&D (translating those patents into real products and real revenue streams has not gone well), I wonder how it will go over with shareholders.

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Investopedia: Alcatel-Lucent Looking At Long Road, But Not Starting From Scratch

To get a sense of just how badly wrong the Alcatel-Lucent (NYSE:ALU) story has gone, consider that the combined company has never produced a full year of positive free cash flow since the 2006 merger. What's more, while the company still has very relevant share in areas like edge routing, rivals like Ciena (Nasdaq:CIEN), Huawei, and ZTE have been taking share, while companies like Nokia Siemens Networks get their acts together.

That's all pretty well known, though, and part of the reason the stock sits below $1.50 today. With a new CEO, new products, and new market opportunities, perhaps Alcatel-Lucent has new life to offer shareholders.

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Investopedia: Is Telecom The Next Squabbling GRound For The U.S. And China?

It's unfortunate, but the reality of politics in America these days is that it's sometimes hard to tell the difference between political posturing for the benefit of the constituents who watch TV and legitimate issues of national importance. Take the recent report from the U.S. House Intelligence Committee that recommends U.S. companies and government agencies avoid doing business with Chinese firms Huawei and ZTE - is this a legitimate concern for U.S. security, or just an unnecessary pre-election kerfuffle?

Perhaps even more critical to investors, however, is the question of whether Congress intends to put any real force behind this recommendation, and whether there will be consequences for American hardware vendors such as Cisco (Nasdaq:CSCO) and Juniper (Nasdaq:JNPR).

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Seeking Alpha: Alcatel-Lucent - The Rope Is Getting Tighter

When I last wrote on Alcatel-Lucent (ALU) a quarter ago, longs certainly didn't appreciate my skepticism on this company's near-term prospects. Nevertheless, the stock has dropped almost another 40% since then, and now questions are popping up regarding whether the company can cut enough costs to remain a viable contender.

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Alcatel-Lucent - The Rope Is Getting Tighter

Investopedia: Aruba Still A Growth Story In A Growth Market

 Even if consumer demand for smartphones and tablets has started to disappoint lately, there is little question that it is still a major emergent trend in enterprise IT. As Aruba Networks (Nasdaq:ARUN) is built upon facilitating wireless access to network resources, it is a good pure play on this secular growth. While worries about enterprise IT spending and reinvigorated competition are relevant in the context of a robust valuation, this is still an interesting tech growth story.



A Solid Start to the Fiscal Year
Aruba is getting its fiscal year off to a solid start. Revenue rose 44% in the quarter and 5% on a sequential basis. Profitability is also fairly good. Gross margin did worsen from last year ((whether generally accepted accounting principles (GAAP) or non-GAAP)), but improved decently on a sequential basis. Operating income was more uniformly positive - the year-on-year GAAP increase being so large as to almost be irrelevant, while the company added almost a point and a half to non-GAAP operating margin on a sequential basis. (To know more about income statement, read: Understanding The Income Statement.)


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http://stocks.investopedia.com/stock-analysis/2011/Aruba-Still-A-Growth-Story-In-A-Growth-Market-ARUN-CSCO-MERU-JNPR-HPQ-MSI-ALU-AAPL-ZTCOY1123.aspx

Investopedia: China Mobile May Be Right For The Times

There are plenty of reasons not to like China Mobile (NYSE:CHL). Not only is China's largest cell phone operator closer to the Chinese government than many investors will find comfortable, but the company is also likely well past the point of exciting top-line growth. All of that said, though, this is a company with major market share, hand-over-fist cash flow generation, and a very solid business. Given how turbulent the markets are and the spasms that go with even modest disappointment, China Mobile looks like a dividend growth idea where investors can lay low for a while. 

Second Quarter Results - Solid, But Not Scintillating  
China Mobile's results probably won't impress casual observers, but they were better than many analysts had expected. First half revenue rose almost 9%, while second quarter revenue rose a half-point more. Second quarter EBITDA rose more than 7% (and margins compressed about 80 basis points), and net profit was up 7%. (For more on EBITDA, see A Clear Look At EBITDA.)

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http://stocks.investopedia.com/stock-analysis/2011/China-Mobile-May-Be-Right-For-The-Times-CHL-CHA-CHU-AAPL-JDSU-ALU-ERIC0819.aspx

Investopedia: Alcatel-Lucent Still In The Fight

Alcatel-Lucent (NYSE:ALU) has had a long, difficult run. Created through the combination of two once well-respected, but struggling, telecom equipment vendors, Alcatel-Lucent has itself struggled to drive efficiencies from the merger. Making matters worse, the company has had to cope with a challenging capital equipment market while dealing with the rise of Chinese rivals Huawei and ZTE. 

Now, though, it looks as though the company may be making real progress towards becoming a more efficient operator and translating its good market share into better shareholder returns.

A Good Start to the Year
Alcatel-Lucent posted a pretty solid first quarter. While revenue did fall 23% on a sequential basis, revenue did grow about 15% on a year-on-year basis. Like Ericsson (Nasdaq:ERIC), Alcatel-Lucent saw a relative benefit from its wireless business, while the optics business was less impressive. IP performance depends on the context - a 31% sequential drop was pretty weak, but the 28% year-over-year growth was solid. 



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Investopedia: The Return Of The Norsemen?

Like its fellow Nordic tech brother Nokia (NYSE:NOK), Ericsson (Nasdaq:ERIC) can only look back fondly on the days when it was a favorite of the tech crowd. Not only did the excessive build-out of the late '90s poison the well, but Ericsson has had to deal with the rise of Chinese competitors like Huawei and aggressive marketing and pricing moves from rivals like Alcatel-Lucent (NYSE:ALU) just trying to stay in business.


A Surprisingly Strong First Quarter
Even though Ericsson is not a widely loved stock in the analyst community, the business has been staging a comeback, and the first quarter was surprisingly strong. Revenue rose 17% as reported, and although this was a 16% sequential decline, it was better than analysts had expected. It is also worth noting that on a constant-currency basis year-over-year growth was actually on the order of 25% - a pretty respectable quarter by any standards.


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