StockCall Review on Tellabs and Alcatel Lucent: What is Driving Growth for the Industry

Feb 08, 2013, 08:00 ET from

LONDON, February 8, 2013 /PRNewswire/ --

The communications equipment industry is expected to grow at a solid pace in the next few years as telecommunications companies invest heavily in wireless networks. This augurs well for communication equipment companies such as Tellabs Inc. (NASDAQ: TLAB) and Alcatel Lucent SA (ADR) (NYSE: ALU). StockCall has newly initiated technical research on Tellabs and Alcatel Lucent. These free reports are available by registering for free at:

Deployment of 4G LTE to Drive Growth

Despite the challenging macro environment last year, the market for mobile communications equipment registered robust growth in 2013, according to IHS iSuppli Wireless Systems Market Tracker. IHS iSuppli expects overall revenue for mobile communications equipment to rise in 2013. One of the drivers of growth will be the increasing deployment of 4G LTE.

The outlook for the communications equipment industry in 2013 is quite optimistic. Also, an improvement in the global economy should boost investments in wireless infrastructure projects.

Earlier this week, France-based Alcatel Lucent and France Telecom-Orange announced the deployment of the world's first optical link offering a capacity of 400 Gigabits per second per wavelength in a live network. Also this week, Alcatel Lucent reached an agreement with Telecom New Zealand reached an agreement to deploy the company's converged 100 gigabit-per-second optical network to over 30 cities across the country offering high speed transport services. Download the free report on Alcatel Lucent by signing up at

Tellabs Reports Strong Q4 Results

Last week, Tellabs reported its financial results for the fourth quarter of 2012. On a GAAP basis, Tellabs reported a net loss of $23 million, or $0.06 per share, compared to a net loss of $5 million, or $0.01 per share, reported in the same period in the previous year. On a non-GAAP basis, the company posted earnings of $3 million, or $0.01 per share, compared to $4 million, or $0.01 per share reported for the same period in the previous year. Register now and access the free technical analysis on Tellabs at

Tellabs revenue for the fourth quarter of 2012 was $242 million, compared to $317 million reported for the same period in the previous year. For 2012, Tellabs revenue stood at $1.053 billion, compared to $1.286 billion reported in 2011. Dan Kelly, President and CEO of Tellabs, noted that over the last quarter, the company initiated a review of its strategy, product portfolio and cost structure. Kelly said that based on its analysis of ROI, customer needs and market conditions, the company is discontinuing development of the Tellabs 9200.

For the first quarter of 2013, Tellabs expects revenue to be between $205 million and $220 million.

Alcatel Lucent's CEO Resignation and Quarterly Results

Alcatel Lucent's fourth quarter results were released yesterday.

The Paris-based telecommunication equipment maker posted a loss of $1.85 billion for the quarter as compared to a profit seen a year ago for the same quarter. Amidst the announcement of this huge loss, news also came out that the company's CEO, Ben Verwaayen, will be leaving the company after close to 4 years behind the company's helm.  

During the fourth quarter of 2012, Alcatel Lucent received multi-year financing commitments from Credit Suisse USA AG and Goldman Sachs AG. Alcatel Lucent CEO Ben Verwaayen said that the multi-year financial commitment allows the company to operate and adapt its business in a manner which is appropriate in today's markets.

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