Alcatel-Lucent Technologies, UK
Alcatel-Lucent UK is a partner of service providers, enterprises, industries and governments establishments in the UK. Alcatel-Lucent includes Bell Labs centres for research in communications technology. Its operations are in England, Scotland and Ireland. For six months ending 30 June 2011, Alcatel-Lucent UK's total revenue increased by 12% to 764 Million comprising nearly 5% of global revenues and around 60% of revenues from Rest of Europe (excluding France and Western Europe). The UK division employs approximately 12000 employees. In UK, its segments comprise of fixed, mobile and converged broadband access, carrier and enterprise IP technologies, applications and services.
Alcatel-Lucent provides a wide variety of mobile solutions for CDMA, GSM, GPRS/EDGE, W-CDMA, WiMAX and LTE networks. Besides, its solutions are used in various industrial domains including airport, education, finance, healthcare, highways, hospitality, manufacturing, oil & gas, power utilities, defence, railways, retail, state & local authorities.
Net income from continuing operations totalled 33 Million in 2010 as compared to a loss of 86 Million in 2009. Total revenue reflects increased demand for the company's products and services in all business segments as well as in France and Western Europe geographic segments. Net income from continued operations reflects improved gross and operating margins both. Under its wireless services, the division holds the biggest share in CDMA with 39% market share in 2010.
In its Wire line category, the company holds the largest share in broadband access with 39% DSL market share based on revenues for 2010. It was rated best in GPON ports with 32% market share; and holds the third largest market share in IMS Core software licenses, with 14% market share based on 2010 figures.
During 2010, the Company launched the Digital Media Store, a multi content digital storefront that allows service providers to deliver content to end-users. In December 2010, the Company completed the sale of its Vacuum pump solutions and instruments business to Pfeiffer Vacuum Technology AG. In September 2010, the Company acquired OpenPlug, a mobile software and applications development tools vendor. In June 2010, the Company acquired ProgrammableWeb.
Although the company's various strategic initiatives helped it reduce its losses, still it face challenges to reach profitability in the past five years. In addition, company's operating margin was -1.93% for the fiscal year 2010. This was below the Wireless Telecommunications Services sector average of 10.58%. A lower than sector average operating margin may indicate inefficient cost management or a weak pricing strategy by the company.
Alcatel-Lucent UK depends on a small number of customers for a major part of its revenue. The company's ten major customers generated 43% of the total revenue in 2010. The future prospects of the company depend on the continued business from such customers. It also depends on the continued status of the company as a qualified supplier to such customers.