AlcaLu Down, But Not Out, in Q3
Well, good luck with all that.
The equipment vendor reported a net loss of €40 million (US$51 million) in the third quarter, down from €345 million ($441 million) a year earlier when it took a wallop for some restructuring charges.
Revenues reported were €4.065 billion ($5.183 billion), down 6.6 percent from a year earlier. The company’s carrier operating segment reported revenues of €2.7 billion ($3.4 billion), down from €3.1 billion ($3.95 billion) a year earlier, so that segment of the company slowed about twice as fast as AlcaLu on the whole.
Verwaayen said the company’s full year 2008 revenues would be down by a low- to mid-single digit percentage from the previous year's, reflecting a general slowdown in carrier spending. But that's not a change in guidance -- and that seemed to cheer up investors who were looking to Verwaayen for some early signs of stability.
Also, Verwaayen hammered home a point that resonates with carriers -- that AlcaLu’s job is to enable those service providers to be more than "pipe providers." He said the company should help its customers deliver what he called carrier class Web 2.0 services.
Verwaayen said he’ll announce a new leadership team later this month and expound on a "new, simpler" business model for AlcaLu. By the end of the year, he hopes to have revealed the company’s strategic plan in full, and that’ll carry it onto February 2009, when it releases its full year 2008 results -- and when we’ll have a better measuring stick for how Verwaayen’s doing overall.
AlcaLu shares were up 0.33 (14.29%) to $2.64 in mid-morning trading on Thursday.
— Phil Harvey, Editor, Light Reading