AT&T's  announcement of a $22 billion, three-year-long program of capital investment was supposed to save the telecom equipment industry. So far, it seems only Nokia and Cisco are thriving. Meanwhile, erstwhile industry giant Alcatel-Lucent is failing fast, as revenues fall, profits disappear, and cash vaporizes.

With a big debt payment coming due in 2015, will Alcatel make it? Maybe not, if it keeps burning cash at the rate we saw in Q1. Fool contributor Rich Smith explains it all in the video below.

As Alcatel dives, Cisco thrives. Once a high-flying tech darling, Cisco is now on the radar of value-oriented dividend lovers. Get the low down on the routing juggernaut in The Motley Fool's premium report. Just click here now to get started.

The article Alcatel-Lucent Is Going Down the Tubes originally appeared on

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Cisco Systems and Goldman Sachs. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Sounds Like you are shorting this stock

May 01 2013 at 12:28 PM Report abuse rate up rate down Reply