Wednesday, November 2, 2016

Broadcom to Acquire Brocade for Fibre Channel Business

Broadcom agreed to acquire Brocade Communications Systems for $12.75 per share in an all-cash transaction valued at approximately $5.5 billion, plus $0.4 billion of net debt.

Broadcom plans to keep Brocade's Fibre Channel storage area network (FC SAN) switching business and divest Brocade’s IP Networking business, consisting of wireless and campus networking, data center switching and routing, and software networking solutions.

Broadcom expects to fund the transaction with new debt financing and cash available on its balance sheet.

The companies said the deal is not subject to any financing conditions, nor is it conditioned on the divestiture of Brocade’s IP Networking business.

Broadcom said key reasons for the acquisition include the profitability margin for Brocade's FC SAN business, which currently comprises vast majority of Brocade’s non-GAAP operating profit.

“This strategic acquisition enhances Broadcom’s position as one of the leading providers of enterprise storage connectivity solutions to OEM customers,” stated Hock Tan, President and Chief Executive Officer of Broadcom. “With deep expertise in mission-critical storage networking, Brocade increases our ability to address the evolving needs of our OEM customers. In addition, we are confident that we will find a great home for Brocade’s valuable IP networking business that will best position that business for its next phase of growth.”

“This transaction represents significant value for our shareholders, who will receive a 47% premium from the Brocade closing share price on Friday, October 28, 2016, and creates new opportunities for our customers and partners,” said Lloyd Carney, Chief Executive Officer of Brocade. “Our best-in-class FC SAN solutions will help Broadcom create one of the industry’s broadest portfolios for enterprise storage. We will work with Broadcom as it seeks to find a buyer for our IP Networking business which includes a full portfolio of open, hardware and software-based solutions spanning the core of the data center to the network edge.”

http://www.broadcom.com
http://www.brocade.com

Facebook Hits 1.09 Billion Mobile Daily Users

Facebook reported Q3 2016 revenue of $7.011 billion, up 56% from the same period last year.

Highlights:

  • Daily active users (DAUs) – DAUs were 1.18 billion on average for September 2016, an increase of 17% year-over-year.
  • Mobile DAUs – Mobile DAUs were 1.09 billion on average for September 2016, an increase of 22% year-over-year.
  • Monthly active users (MAUs) – MAUs were 1.79 billion as of September 30, 2016, an increase of 16% year-over-year.
  • Mobile MAUs – Mobile MAUs were 1.66 billion as of September 30, 2016, an increase of 20% year-over-year.
  • Mobile advertising revenue represented approximately 84% of advertising revenue for the third quarter of 2016, up from approximately 78% of advertising revenue in the third quarter of 2015.
  • Capital expenditures for the third quarter of 2016 were $1.10 billion.
  • Cash and cash equivalents and marketable securities were $26.14 billion at the end of the third quarter of 2016.

http://www.facebook.com

Microsoft Teams Brings New Collaboration/Communications Tools to the Mix

Microsoft unveiled a chat-based workspace in Office 365 for team collaboration.

Microsoft Teams, which is available in preview in 181 countries and in 18 languages, aims to bring a new streamlined form of communications to organizations. Skype and Office apps are integrated into the experience. Data is encrypted in transit and at rest. The service is hosted out of Microsoft's global data centers.

Microsoft said it aspires "to create a more open, digital environment that makes work visible, integrated and accessible—across the team—so everyone can stay in the know."

http://www.microsoft.com

Inphi to Acquire ClariPhy for Coherent DSPs

Inphi, which supplies high-speed data movement interconnects, agreed to acquire ClariPhy Communications, a provider of ultra-high-speed systems-on-chip (SoCs) for multi-terabit data, long haul and metro networking markets for $275 million in cash as well as the assumption of certain liabilities at the close.

ClariPhy is one of only three merchant suppliers of coherent DSP technology. The company is based in Irvine, California.

On the product front, following closing, Inphi expects to be able to offer customers (1) coherent DSP, TiA, drivers for long haul, and metro, (2) direct detect PAM DSP-based solutions for DCI edge between data centers, and (3) NRZ and PAM short reach solutions for inside data centers. On the component front, following closing, Inphi expects to be able to offer TiA, driver, silicon photonics, coherent DSP, PAM and NRZ physical layer devices.

“With the acquisition of ClariPhy, we are completing our product portfolio as the leading component and platform supplier for optical networking customers,” said Ford Tamer, president and CEO of Inphi.  “The ClariPhy coherent DSP complements Inphi TiA, driver, optical PHY and silicon photonics components to provide system OEM and module customers high-performance and low power platform solutions.  Following closing, we expect to have platform offerings for long haul, metro, DCI edge, and intra-data center applications. We believe this will provide customers with faster time-to-market, proven quality, and competitive cost.”

http://www.inphi.com
http://www.clariphy.com

Qualcomm Posts Sales of $6.2B, up 13% YoY

Qualcomm reported revenue of $6.2 billion for its fourth quarter of fiscal 2016, up 13% over the same period a year ago. Net income came in at $1.6 billion, up 51% YoY, or $1.16 per diluted share. Revenue for the full fiscal 2016 amounted to $23.6 billion.

“Our fiscal fourth quarter EPS was above the high end of our expectations, reflecting new license agreements in China and strong chipset shipments,” said Steve Mollenkopf, CEO of Qualcomm Incorporated. “We are forecasting continued growth of global 3G/4G device shipments in calendar year 2017, led by growing demand in emerging regions. We are well positioned to extend our mobile technology leadership and footprint into attractive growth opportunities, accelerated by our recently announced agreement to acquire NXP.”

http://www.qualcomm.com

IBM Augments Cloud Storage with All-Flash and Software Defined Options

IBM announced new hybrid cloud all-flash storage solutions as well as new software capabilities that allow clients to store their valuable data where it makes the best business sense.

The all-flash storage leverages a new high density expansion enclosure and new 7TB and 15TB flash drives, enabling IBM Storwize solutions to grow up to 8x larger than previously without disruption. Up to 32PB of flash storage can be configured in only four racks.

“Data feeds the engine for cognitive applications that deliver client value and competitive advantage. Helping clients evolve from having data obligations to using its data to better serve its business is at the heart of today’s wide-reaching announcement,” said Ed Walsh, general manager, IBM Storage and Software Defined Infrastructure. “Hybrid Cloud enablement, as a standard feature for new and existing users of Spectrum Virtualize gives our clients more control to store their data where it can have the most impact to its business.”

http://www.ibm.com

See also