Not a good time to be an ALU shareholder as the company reported a loss for the first quarter of 2010. The stock price struggles to break $3/share. Revenues declined for most of its business segments:
Quarterly revenues decreased 9.8% year over year and decreased 18.1% sequentially to €3.247 billion. By operating segments, Networks saw a double-digit decline in revenue, partly attributable to a shortage of components in supply chain. This has been particularly true in wireless access and terrestrial optics. Applications revenue declined 6.3% year over year with enterprise solutions & Genesys relatively stable. Services segment was more resilient with a 3.1% year-over-year decrease supported by managed services and multivendor maintenance.
Even Genesys isn’t faring that well? “Relatively stable” as in “revenues will continue to decline as the same rate”? And a “3.1% year-over-year decrease” is considered resiliency? There doesn’t even seem to be a hint of sunshine in this quarterly report. What about getting customers to upgrade to the fancy new version, Genesys 8? What happened to the momentum of G-Force Chicago and G-Force Amsterdam? And the high profile partnerships with Lithium social media and InQuira knowledge management solutions?
I have a feeling that this year we’re going to find out whether the Genesys acquisition and the subsequent restructuring and reorganization were effective.
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