Megamergers are never easy, and border-spanning multinational deals can be even tougher. Nonetheless, it seems that the $13.4 billion combination of Alcatel-Lucent
Last Friday, the French-American firm reported that its Q1 revenue sank 12.4% to $5.25 billion. It posted 199 million euro, or $269 million, in profit, compared to 306 million euro in the year-ago period, as the uncertainty surrounding its merger allowed competitors such as LM Ericsson
Still, Alcatel-Lucent has worked hard on its merger integration, working out the kinks with employees, customers, and partners. It's also crafting a more streamlined organization model and new product road maps.
Signs suggest that sales momentum may be revving up. Alcatel-Lucent recently scored a $6 billion deal with Verizon
Going into Q3, Alcatel-Lucent expects a healthy 10% sequential increase in revenue. For the full year, the company forecasts a 4% to 6% rise in the top line.
Alcatel-Lucent should also benefit from workforce reduction, as well as savings from changes in R&D, information technology, and procurement. In the full fiscal year, the company expects these efforts to save approximately $811 million.
Alcatel-Lucent seems springloaded for top- and bottom-line growth in the second half of this year. Investors are taking note; the stock price has spiked 18% since late March, and the shares' momentum shows no signs of slowing.
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