LUCENT ACQUIRES SPRING TIDE FOR ITS IP SERVICES SWITCH
Lucent Technologies will acquire Spring Tide Networks, a start-up developing an IP services switch, for about $1.3 billion in stock (26.8 million LU shares).  Lucent said it would position Spring Tide's switch to map advanced IP services, created at the network edge, across the intelligent optical core of carrier networks.  It could be used for delivering virtual private networks (VPNs), managed firewalls, voice and multimedia services for tens of thousands of users simultaneously.  http://www.springtidenetworks.com/
http://www.lucent.com/press/0700/000725.nsa.html
Lucent Technologies, July 25, 2000

• Spring Tide's IP Service Switch 5000 provides bitstream processing functions for each flow (either packet or cell) at wire speed, including authentication, encryption, compression, filtering, classification, tagging, queuing, and address translation.  Dedicated processors are used for flow classification and queuing; packet forwarding; routing and session management; encryption and compression; and key generation. A fully configured 5000 contains over one hundred special and general-purpose processors, as well as hundreds of megabytes of memory for context and state information.  The switch relies on directory-based user policy profiles for service provisioning.  
  
• Last week, AT&T's fixed wireless division awarded a two-year, $250 million contract to Lucent to build and maintain voice and data networking infrastructure supporting its new "Project Angel" fixed wireless network.  A key part of the infrastructure rollout involves Spring Tide Networks' IP Service Switch 5000 combined with Lucent's AccessPoint 1000 Multiservice IP Access routers and Spring Tide Networks' IP Service Switch 5000.  Lucent and Spring Tide signed an OEM deal last December.
  
• Spring Tide was co-founded in 1998 by Steve Akers, formerly VP of advanced technology development at Shiva, and Stephen Collins, previously a founding engineer at Wellfleet Communications.  The company has 130+ employees and is based in Maynard, MA. 
  

CISCO TO ACQUIRE KOMODO TECHNOLOGY FOR VOIP DEVICES
Cisco Systems will acquire Komodo Technology, a start-up developing Voice-over-IP (VoIP) devices for analog telephones, for approximately $175 million in stock.  Komodo Technology's Fone adaptor devices turn a regular phone into an Internet phone by directing calls through a user's ISP connection (bypassing the PC) and then via an Internet telephony carrier (such as Net2Phone).  Komodo's product connects via an internal modem to a standard telephone line or via Ethernet to a broadband (DSL, cable or wireless) access device.  The company has 25 employees and is based in Los Gatos, California.   http://www.komodo-tech.com/
http://www.cisco.com/warp/public/146/pressroom/2000/jul00/corp_072500.htm
Cisco Systems, July 25, 2000

• Komodo VoIP system-on-chip (SOC) solutions are being developed for interoperability with multiple standards, including H.323, MGCP, and SIP.  
  
• Komodo Technology was founded in 1999 and is led by Jan Fandrianto, one of the early developers to have merged a RISC processor and a DSP based SIMD (Single Instruction Multiple Datapath) processor into a single chip, a trend that has since gained popularity with the introduction of Intel MMX processors.  Komodo's technical team is also led by Dr. Wen H. Chen, also a noted expert in the field of digital video and audio coding.  Dr. Chen also was a principal founder of V-Bits Inc. (MPEG Digital Video Insertion systems, acquired by Cisco Systems in Nov. 99) and Compression Labs Inc.
  
• In October 1998, Cisco Systems acquired Selsius Systems, a developer of IP network PBX systems and phones, for $145 million in stock and cash.

ITXC ACQUIRES EFUSION FOR ITS VOICE-ENABLED APPLICATIONS
ITXC, which operates one of the largest, wholesale Internet telephony networks, will acquire privately held eFusion, a developer of voice-enabled applications, for about $164 million (5.6 million ITXC shares).  eFusion services, which are designed to integrate voice and voice mail with other PC-based communication, include a "Push to Talk" application, "ecalling" (follow-me call forwarding via the Net), and "Suite Adeline" (Internet call waiting, voice mail, and follow-me services as part of PC-based call management).  ITXC said it plans to integrate the eFusion applications into its wholesale services for its carrier, ISP and portal site customers. 
http://www.itxc.com/press/index.html  http://www.efusion.com
ITXC, July 25, 2000

• eFusion was founded in 1996 as a spin-off from Intel.  Its primary investors include Intel, Microsoft, AT&T Ventures, France Telecom, Telecom Italia and Merrill Lynch.   The company is based in Beaverton, Oregon.
  
• ITXC's IP telephony network currently extends to 258 POPs in 151 cities and 60 countries. Major carrier affiliates include Ameritech, Bell Atlantic, China Telecom, Korea Telecom, Telstra and others.

VIRATA ACQUIRES AGRANAT SYSTEMS FOR ITS EMBEDDED HTTP SERVER SOFTWARE
Virata Corporation will acquire Agranat Systems, a privately held developer of networking management software, for approximately $36.9 million (492,000 VRTA shares).  Agranat offers a scalable embedded HTTP software server that allows users to remotely access, configure, and manage devices or applications via the Internet using a standard web browser interface.  Virata said the software would enable it to make its DSL and broadband wireless products significantly easier to deploy and maintain.  http://www.virata.com/  http://www.agranat.com
Virata, July 25, 2000

CYPRESS SEMICONDUCTOR TO ACQUIRE SILICON LIGHT MACHINES FOR MEMS DEVICES
Cypress Semiconductor agreed to acquire Silicon Light Machines, a privately held supplier of micro-electromechanical systems (MEMS) technology, for about $169 million in stock (3.7 million CY shares).  Silicon Light Machines' optical devices are currently used in visual display applications.  However, the company is developing techniques for nonlinear wavelength conversion, diffraction gratings used to discriminate wavelengths, and nanosecond light switching speeds.  Cypress said the acquisition would accelerate it entry into the market for pure optical and optoelectronic networking components.  http://www.cypress.com/
Cypress Semiconductor, July 25, 2000

• Stanford University Professor David Bloom founded Silicon Light Machines in 1994.  Its Grating Light Valve (GLV) technology provides a means for creating a high-performance spatial light modulator on the surface of a silicon chip.  Micro-Electromechanical Systems (MEMS) techniques are used to form tiny ribbon-like picture elements, or pixels, on the surface of a silicon chip.  The ribbons can be moved up or down over a very small distance (only a fraction of the wavelength of light) by controlling electrostatic forces.  Investors have included Andy Bechtolsheim (a co-founder of Sun Microsystems), The Mayfield Fund, Institutional Venture Partners, Evans & Sutherland Computer and others.  The company is based in Sunnyvale, California.

ALTRA BROADBAND DEVELOPS SPIN POLARIZED DWDM TARGETING 12.8 TBPS PER FIBER
Altra Broadband Inc., a new subsidiary of Ansoft Corporation, unveiled plans for a proprietary Spin Polarized Dense Wave Division Multiplexing (SP-DWDM) product line for both long-haul and metro optical networks.  The company said its technology operates by piggy-backing over DWDM.  It multiplies the quantity of data on each channel by exploiting several spin states in each wavelength or frequency.  The technique could also be applied over existing wireless multiple-access schemes, like CDMA and GSM.  Initially, the company plans to focus its technology development on multiplexing DWDM OC192 outputs, yielding single fiber data capacities of up to 12.8 Tbps.  Ansoft credits Dr. Lawrence Williams and Mr. P. Premkumar as inventors of its SP-DWDM technology.  http://www.ansoft.com/
Ansoft, July 25, 2000

TROIKA NETWORKS RAISES $41 MILLION FOR ITS IP-ENABLED FIBRE CHANNEL SANS
Troika Networks, a start-up developing IP-enabled Fibre Channel storage area networks (SANs), raised $41 million in its latest round of venture funding.  Troika offers controllers and configuration management software for Fibre Channel based server and storage area networks.  The products combine three networking protocols and functions:  Virtual Interface Architecture for application-to-application, IP for server-to-server, and SCSI for server-to-storage communications - into a single standards-based infrastructure.  Investors include Intel Capital, Network Appliance, Nissho Electronics, Amerindo Investment Advisors, Draper Fisher Jurvetson, Dynafund Ventures, New Enterprise Associates (NEA) and Windward Ventures.  http://www.troikanetworks.com
Troika Networks, July 25, 2000

• Troika Networks was co-founded in 1998 by Bill Terrell and Wayland Jeong, both formerly with Vitesse Semiconductor.  The company is based in Westlake Village, California.

RHYTHMS REACHES 31K DSL SUBSCRIBERS
As of June 30, Rhythms NetConnections had 31,100 DSL accounts in service, up from 20,000 at the end of Q1 2000.  The company now has 1,530 operational central offices, including 40 in central offices in Toronto and Montreal.  For the quarter, Rhythms reported revenue of $12.2 million and a net loss of $106.2 million, reflecting the continued deployment of its national network.  http://www.rhythms.net/
Rhythms NetConnections, July 25, 2000

NORTEL NETWORKS' REVENUE RISES 48% TO US$7.8 BILLION
Nortel Networks reported quarterly revenue of US$7.82 billion, up 48% from the US$5.28 billion reported in the same period in 1999.  Net income was US$561 million, or US$0.18 per share.  Highest areas of revenue growth include Optical Internet (+150%), Wireless Internet (+18%) and high-speed Local Internet solutions (+80%).  The company also credited the transformation of supply chain during the past 18 months to an outsourced model as a major factor contributing to its success.  http://www.nortelnetworks.com
Nortel Networks, July 25, 2000

• Market estimates for NT were $0.15 per share