Technology Biz Review: Alcatel-Lucent and LinkedIn Earnings

Alcatel-Lucent (NYSE:ALU) shares are down trading after reporting fiscal year 2011 profit of 1.1 billion pound ($1.74 billion) compared with a 334 million pound ($528.59 million) loss in 2010. It is also targeting an additional 500 million pounds ($791.30 million) of cost savings in the coming year. It is also expecting an increase in adjusted operating profit as a percentage of sales from the 2011 level of around 3.9%.

Alibaba plans to take Albiba.com private. The privatization is in order to help smooth the wheels for a Yahoo (NASDAQ:YHOO) deal, according to Reuters. The 27% of Alibaba.com that Jack Ma’s doesn’t control has a market value of $1.6 billion.

Don’t Miss: Alibaba Looks to Buy Back Yahoo’s Shares.

Amazon (NASDAQ:AMZN) will not offer a standalone streaming video service to compete with Netflix (NASDAQ:NFLX) stating Prime Video will only be available to those who pay $79 for an annual Prime Membership, “at least into the near future.” On an annual basis, that still makes Prime Video cheaper than Netflix’s $96/year. But, the lack of a monthly payment option could deter some buyers.

Microsoft’s (NASDAQ:MSFT) Xbox 360 was again the top-selling home console. Its 270,000 shipments gave it a 49% share. United States retail video game hardware and software sales each fell 38% year-over-year in January, claims research firm NPD. In December, the year-over-year declines were only 28% and 14%, respectively.

Investing Insights: Zynga: Get Ready for Tons of Hasbro Games.

LinkedIn (NYSE:LNKD) is surging after posting strong fourth quarter results and 2012 guidance, as well as a healthy jump in registered users. Canaccord  is impressed with the performance of the Hiring Solutions business, noting it added 1,870 corporate customers. During its earnings call, LinkedIn said it would begin selling mobile ads soon.

Nuance (NASDAQ:NUAN), shares nearly doubled since August but it is off sharply after its first fiscal quarter raises fears that Apple’s (NASDAQ:AAPL) Siri may not be as profitable as hoped. Wedbush who gives Nuance Underperform notes the top-line miss which occurred in spite of the acquisition of Vlingo. Needham who rates Nuance at Buy is optimistic about attempts by phone vendors to catch up to Siri will drive demand for Nuance’s software.

Don’t Miss: Facebook: China Could Be Out of Reach.

To contact the reporter on this story: Tanya Harding at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com