Shift pays off for Alcatel-Lucent
Alcatel-Lucent, which is set to be acquired by rival Nokia, beat its own estimates with its first quarter earnings report. The company’s Shift Plan, meant to cut costs and transform the network equipment company into an IP and broadband specialist, has now been in place for almost two years. Apparently the plan is paying off.
First quarter revenues were $3.6 billion, up 9% year-on-year, and the company said revenues from “next generation” products were up 25%. Gross margin for the quarter was 34.6%. Core networking segment revenue rose 7% and IP routing revenue rose 6%.
The results come on the heels of a slowdown in North American carrier spending that has impacted all the wireless equipment makers. European vendors may be selling less to U.S. carriers than they did last year, but each U.S. sale they do make has a bigger impact on revenue than it did last year, because the dollar is stronger.
Automakers may bid for Here
The Wall Street Journal is reporting that BMW AG, Audi AG, and Daimler-Benz are teaming up with China’s Baidu to launch a bid for Nokia’s Here mapping unit. Earlier this week, reports that Facebook may try to buy Here launched discussions about the unit’s value. The automakers are reportedly willing to spend more than $2.2 billion to get their hands on Nokia’s technology, and/or to keep it away from rivals.
The connected car is seen as a major battleground for companies from several industries, including wireless, automotive, software and silicon. Makers of luxury vehicles know they will need mapping technology to create the advanced navigation that can eventually allow cars to drive themselves and interact with one another.
T-Mobile US teams up with BlackBerry
T-Mobile US says “Un-carrier 9.0” is all about business, and one big step in that direction is the company’s new partnership with BlackBerry. The company will offer the BlackBerry Classic beginning next Wednesday, for $18.33/month for 24 months. The BlackBerry Classic features the QWERTY keyboard that remains popular with some smartphone users, as well as BlackBerry’s proprietary security features.
John Legere, T-Mobile’s outspoken CEO, often promotes company news on social media and today was no exception.
