![]() ![]() ![]() Lucent says it is committed to being at the forefront of this new market but faces challenges from other companies that have been focused on data networking for much longer. provider of telecom equipment, and its customer list reads like a who's who of the technology and telecom industries - SBC Communications Corp., Intel Corp., AT&T, AirTouch, Apple, Sun Microsystems all use Lucent products.īut times are changing, and the products that Lucent primarily focused on - equipment for circuit- switched telephone systems - are going the way of the record player. Lucent has been so successful because its products run everything from traditional phone systems to wireless phones to the Internet. Shares are up more than 90 percent for the year. The company's market value is $109 billion, and its stock has defied the recent market downturn. Revenue has soared from $23.3 billion in 1996 to $30 billion in 1998. two years ago and is desperate to sustain that pace. Lucent has had explosive growth since it was spun off from AT&T Corp. "With the West Coast being such a hotbed of data networking, in order to be in the flow of information and to have the relationships with companies and customers, Lucent needs to be out here."īeing in Silicon Valley also will allow the company to keep close tabs on its competitors. "One of the biggest issues for Lucent near-term is the ability to become a stronger player in data networking," said Gregory S. Synergy aside, industry watchers say Lucent needs to be in the Valley because that's where most of the breakthrough technology is happening and where customers expect their suppliers to be located. He cited the area's educated workforce, rich talent pool and impressive universities as reasons for having a presence here. "The culture of the Valley fits in very well with what we want to do," McGinn said. Harnessing what McGinn calls the "intellectual horsepower" of the Valley will help Lucent compete in the brave new world of telecommunications. The strategy for developing the products out here, says Lucent CEO Richard McGinn, is to siphon off some of the creativity, energy and brain power that's made Silicon Valley the premier place for innovation. Lucent and others are working to create products that seamlessly integrate voice, video and data networks.ĭata networking products will give companies enhanced services, such as universal messaging, plus the ability to control all phone calls, Internet access and video-conferencing from a single network. What Lucent is trying to do is compete in the data networking business, a relatively new task for the company. ![]() "We are very conscious of what Lucent is doing out here," said an executive from one of the area's largest companies. That's still a small number when compared with Cisco's 16,000 employees and 3Com's 13,500 employees, but it's more than Ascend's 1,820, and it's enough to show those companies that Lucent means business. The company now employs more than 3,000 people in the Bay Area and plans to add several hundred more during the next few years. News of the capital increase sent Alcatel-Lucent's share price tumbling by more than 7 percent to €2.76.It's developing new products and technologies such as wireless telephone systems at its facilities in the Bay Area and soon will open a Lucent Venture Fund office in Menlo Park to finance startup tech companies. (See Euronews: Alcatel-Lucent Shifts Into Gear.) The move comes only days after AlcaLu announced a year-on-year increase in third-quarter revenues to €3.66 billion ($4.95 billion) and a reduced operating loss, numbers that were regarded as a sign that the Shift Plan is already having an impact on the company's financial health. The new stock issue does not, however, apply to holders of ordinary shares based in the US "or any other jurisdiction where such offer for sale of the New Ordinary Shares would be unlawful." ![]() The vendor aims to raise $750 million from the issue of new bonds, activate a €500 million ($675 million) credit facility, and raise €955 million ($1.29 billion) by offering new stock - about 460 million ordinary shares at €2.10 each - to investors that own the company's ordinary shares on November 18. Less than a week after announcing better than expected third-quarter financials, Alcatel-Lucent has revealed that it intends to raise more than US$2.7 billion from the financial markets as part of its restructuring strategy, known as the Shift Plan. ![]()
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