Lucent's Profit Slips

Rich Tehrani : Communications and Technology Blog - Tehrani.com
Rich Tehrani
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Lucent's Profit Slips

According to TheStreet.com Lucent increased revenue on a year-over-year basis by 3% to $2.34 billion. The problem is this number fell short of the $2.4 billion dollar analyst estimate. "While the wireline market remains a challenge in the near term, we continue to execute on a long-term strategy of investing in areas that are critical to our vision of convergence such as next-gen optical, VoIP, broadband access, and mobile high-speed data, as well as services, government and emerging markets," CEO Patricia Russo said.

It is amazing to hear optical is back. I feel like it is 2000 all over again. And what's this? VoIP will also be one of the technologies Lucent banks on. The company also supplies Verizon with EVDO wireless broadband technology and I am one of the biggest supporters of this Verizon service. Lucent is a big player in VoIP but they need more visibility in my opinion. A by-product of selling so many products is the inability to effectively compete in the PR and marketing battle in the subsets of technologies you provide. So sometimes pure-play VoIP companies gain more mindshare than a larger conglomerate type communications equipment company.

Still, Lucent has been doing a  much better job on PR and marketing in the VoIP space recently and they are focusing more on the hosted market as well. Hosting in my opinion will be a big part of their revenue by year-end.



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