Boston, MA 10/18/2013 (wallstreetpr) – That the French tech company Alcatel Lucent SA (ADR) (NYSE:ALU) is no longer enjoying its moments in business has shuddered its investors across the globe. Generally the red-hot tech industry in which ALU plays hasn’t been a source of good news lately. But ALU seems to have been hard hit, so much so that some analysts had started wondering how many anniversaries ALU could celebrate before it bows out of the competition.
But it seems some “big news soon” as a source has indicated could alter the manner in which the market and investors have been viewing this ailing company. It is reported that the company is just about to win a big contract that could turnaround its fortunes. This deal involves a major French telecom operator whose identity, as usually in uncompleted deals, has been withheld for the sake of not jeopardizing the deal.
Perhaps with “coming soon big news” is a response to a solemn call by a French minister for industry to domestic telecom operators to favor the company over its business rivals. This of course, came after the government criticized ALU’s ongoing restructuring in which some 10,000 jobs are set to be lost. And domestically, ALU has planned 900 job cuts. The government’s criticism of ALU over job cuts is understandable because the country is battle unprecedented levels of unemployment.
Lately, and in a move viewed as attempts by ALU to strengthen its business, the company is reported to be eager to enter the microchips segment. The company is said to be intalks with different mobile chip makers. It already has a deal with Oragnge Telecoms for the development of tiny stations. Also ALU has put around $135 million in research for the same. This tells of a company so desperate to live on.
As investor confidence wane on ALU and market fortunes continue to shrink for the company, ALU executives are spending days and nights figuring the best way to get the company back on track and steer it to growth. But now with the pending contract, there’s a lifeline in the offing for the company and its investors. Perhaps this explains the company’s gain of $1.63% in the previous sessions trading, October 17.
