New owner of Alcatel-Lucent Enterprise plans to double revenue in 5 years

Alcatel-Lucent Enterprise's new owner Huaxin is taking a bullish outlook on the company with a goal of doubling its $876 million annual revenue within five years, reports French newspaper Les Echos.

Huaxin completed its acquisition of the unit from Alcatel-Lucent (NYSE: ALU) in October, ending what was a period of uncertainty for the struggling subsidiary.

Michel Emelianoff, CEO of Alcatel-Lucent Enterprise, told his staff that it is prepared to invest $250 million to $375 million over five years into the company.

"Huaxin is on the long term," Emelianoff said. "They are not there to make a 'coup.'"

He added that the vendor has no plans to conduct any layoffs of the company's 2,800 worker base in the first two years because "we need everyone to meet our targets."

To facilitate new growth, Alcatel-Lucent Enterprise plans to establish international partnerships with other companies in the U.S., Russia and the Middle East. In addition, it will work with Huaxin to drive growth in China, a market where it only has 5 percent of total sales today.

Besides growing its base in China and in other markets, the company has set a vision to evolve from just another product vendor to a provider of cloud and mobility solutions for enterprise customers.  

For more:
- Les Echos has this article (translated from French)

Related articles:
Alcatel-Lucent wraps up sale of majority stake in enterprise unit to China Huaxin
Alcatel-Lucent searches for another buyer for its struggling enterprise unit
Alcatel-Lucent's enterprise sale to Permira Advisers falls through
Alcatel-Lucent continues to look at options for its enterprise division

Suggested Articles

Microsoft announced that it is committing to becoming carbon negative by 2030 and that it will eliminate all past carbon emissions by 2050.

In 2017, Amazon's CEO and senior leadership team sought $1 billion in additional economic incentives for real estate projects around the country.

Colt Technology Services announced on Thursday that it has hired Annette Geuther as its vice president of new business development.