It looks like revenue went up proportionally more than gross margin indicating either more discounting or a lower margin mix. Losses appear much lower and I would surmise that this is due somewhat to revenue improvement and operational cost cutting.
I would view the optimism around LTE to be a bit over blown. Ericsson and Huawei appear to be the market leaders and the only domestic potential ALU LTE positional strength seems to be at AT&T Wireless. Even there, I doubt that they will be the only vendor.
Personal view is that the IP products appear to be doing well in the market; I believe that ALU is losing ground in an number of other areas. It would be interesting to see the financials associated with the product areas. I would expect optical to be fading.
re: AlcaLu CEO Pitches Recovery StoryAdjusted operating income for 2 qtrs is -316M table 2, if 300M hadn't been spent on restructuring ALU would almost have been profitable, restructuring cost are layoffs, severance is basically paying several months salary to take out the headcount, 2 more quarters of restructuring costs will compound the losses but in 2010 will look like the business has turned around and in reality all will reflect is the reduction in restructuring costs. Magic!
FbytF: 2 more quarters of restructuring costs will compound the losses but in 2010 will look like the business has turned around and in reality all will reflect is the reduction in restructuring costs. Magic!
That is part of the business turning around - spend less to do the same or more and your bottom line goes up. No magic to it.
What is more salient here is whether Revenue is decreasing substantially, thereby offsetting the Cost reduction. You seem to imply that increasing Revenue is the same as a business turning around, and I think that is a narrow view of business operation.
re: AlcaLu CEO Pitches Recovery StoryMagic??? Maybe, if you consider "Magic Ben's" trics. Look at what he did with BT, all smoke and mirrors (Global Services, anyone??), pretended he turned BT around, left with a perfect timing, only for the skeletons to fall out of the closet long after his "package" was already on the bankaccount. ALU today: Look Magic Ben is repeating his trics. Lot's of marketing blablabla (must admit: he is a master in this), smoke and mirrors (LTE, China, US, etc), turns the company into a "profit" (sure, with the handsome help from Thales!!), stips the costs. Next chapter: prepare maybe for a sale (HP)? One thing is for sure with "Magic Ben": he will time his departure from ALU very masterly. Poor souls that are left behind...
It looks like revenue went up proportionally more than gross margin indicating either more discounting or a lower margin mix. Losses appear much lower and I would surmise that this is due somewhat to revenue improvement and operational cost cutting.
I would view the optimism around LTE to be a bit over blown. Ericsson and Huawei appear to be the market leaders and the only domestic potential ALU LTE positional strength seems to be at AT&T Wireless. Even there, I doubt that they will be the only vendor.
Personal view is that the IP products appear to be doing well in the market; I believe that ALU is losing ground in an number of other areas. It would be interesting to see the financials associated with the product areas. I would expect optical to be fading.