All About Nortel

While Nortel talked about a “challenging” business environment after posting its second-quarter results last week, Cisco took a markedly different stance after posting solid fiscal fourth quarter results yesterday.
Cisco said it had “very strong” confidence in its long-term growth targets of 12% to 17%, while Cisco CEO John Chambers added that: “During each economic slowdown, [...]

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Motorola looks increasingly vulnerable these days after it posted a 21% decline in first-quarter sales and a net loss of $194-million. The big shocker was a 40% drop in the mobile phone business to $2.1-billion.
With Motorola scrambling financially, maybe the idea of a marriage/deal with Nortel looks more appealing as a way for two struggling [...]

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Here’s a crazy thought: Nortel is ripe for a takeover - probably by one of those shark-like private equity investors, provided they’re not spooked by the telecom equipment market and the volatile credit environment.
Here’s why:
Nortel has a market capitalization of $3.52-billion and cash of $3.53-billion. This means someone could purchase Nortel, and then cover the [...]

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On the heels of Cisco’s less-than-rosey outlook, Alcatel-Lucent is also cautious about the telecom equipment landscape.
In posting its fourth-quarter results, Alcatel-Lucent CEO Patricia Russo said: “While the long-term prospects of our industry remain good, the macroeconomic environment has created uncertainty in our markets in the last few months.” (Source: TheStreet.com)
The company, which has suspended its [...]

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If Cisco is a harbinger for the health of the telecom equipment market, 2008 might be a tough year.
In posting fairly good fiscal second-quarter results, Cisco said revenue will only grow 10% in the third-quarter compared with its long-term expectations of 12% to 17%. He said customers in the U.S. and Europe are being “cautious”. [...]

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If you’re looking for insight into where the telecom equipment market may be headed, check out this interview with Juniper Networks CEO Scott Kriens, who believes there will be a deluge of Web traffic as more people use it for video, data, entertainment and communications.
He believes that Juniper will be able to compete against Cisco [...]

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Charlie Giancarlo, seen by many people as John Chambers’ successor as Cisco’s CEO, has left to become a venture capitalist with Silver Lake Partners.
He’s the second high-ranking senior manager with Cisco abandon ship following the departure of Mike Volpi, who left to become CEO with Joost.
For more, check out GigaOm and ValleyWag, which suggests Giancarlo [...]

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Sramana Mitra has an extensive post on Seeking Alpha looking at how Cisco’s competitors are doing.
Her “seven dwarf” list includes Nortel, Juniper, F5, Alcatel, Foundry, 3Com and Extreme.

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Ah, this explains why Padmasree Warrior left so abruptly as Motorola’s CTO - she’s going to Cisco.
Smart move - out of the fire and into the arms of John Chambers.
For more, check out Cisco’s blog.

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Gee, things look downright boring at Nortel these days compared to what’s going down at Motorola.
First, CEO Ed Zander decides to walk away after two years on the job. Now, CTO Padmasree Warrior is flying the coop.

Technorati Tags: Motorola

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