NORTEL TO ACQUIRE JDS-UNIPHASE’S 980 NANOMETER PUMP-LASER BUSINESS
Nortel Networks will acquire a JDS Uniphase subsidiary that makes 980 nanometer pump-laser chips for US$2.5 billion in stock, plus an estimated additional US$500 million in its common shares after December 31, 2003 to the extent it does not meet certain purchase commitments from JDS Uniphase by that date.  A 980 nanometer pump-laser chip provides the energy source by which light is strengthened as it is transmitted on fiber between cities or buildings.  Nortel Networks described the acquisition as strategic, in that it will gain one of the world's leading plants for designing and manufacturing large volumes of 980 nanometer pump-laser chips.  The JDS Uniphase subsidiary is based in Zurich, Switzerland and has facilities in Poughkeepsie, New York.  Nortel Networks expects to continue and to enhance the supply relationships the company has with other optical component manufacturers.  http://www.nortelnetworks.com
Nortel Networks, February 6, 2001

• JDS Uniphase announced today that the United States Department of Justice will permit its merger with SDL, Inc. as a result of JDS’ agreement to sell the Zurich subsidiary to Nortel. http://www.jdsuniphase.com/

CISCO EXPECTS FLAT OR DECLINING REVENUES IN NEXT TWO QUARTERS
In its quarterly earnings conference call, Cisco Systems said that it is experiencing revenue “softness” in its US service provider customers, and also in parts of its US enterprise segment.  As a result, it expects sequential revenues to be flat or decline as much as 5% next quarter (Cisco’s Q3 Fiscal Year 2001) followed by 0% sequential growth in the following quarter.  For Q2 2001 ending January 27, 2001, Cisco reported revenues of $6.75 billion, a 55% increase over the same quarter last year, but only 3.5% over Q1 2001.  Revenues for all of Fiscal Year 2001 are expected to be 40% over 2000.

Cisco’s management said that the past quarter was “even more challenging than expected,” due to a dramatic slowdown in capital expenditures and the economy overall, and it expects “the next several quarters to be challenging” as well.  Following these quarters, Cisco believes its long term earnings will continue growing in the 30-50% range for several years.  http://www.cisco.com/public/corp_news.shtml 
Cisco Systems, February 6, 2001

• The second quarter earnings conference call is available at: http://investor.cisco.com/media_files/nsd/csco/csco_index.htm
• Cisco said that its VoIP business is growing rapidly, with a sequential revenue increase of over 60% in Q2.

CIENA RAISES $1.5 BILLION IN STOCK AND DEBT
CIENA completed the public offering of $900 million of common stock and $600 million of convertible notes due in 2008.   The company will use the funds for operations, working capital, capital expenditures and potential acquisitions.  http://www.ciena.com/news/archive/2001/02/02.06.2001.html
CIENA, February 6, 2001

TELSEON RECEIVES $175 MILLION IN NEW FUNDING FOR METRO ETHERNET ROLLOUTS
Telseon secured $100 million in new equity investments to fund the rollout of its metropolitan Ethernet service. In addition, the company has arranged for $75 million in capital lease financing, bring its total funding to date to $261 million in capital.  Investors include DLJ Global Communications Partners, Bruckmann, Rosser, Sherrill & Co., Cabletron Systems, Foundry Networks, Ovation Capital, Lexent, U.S. Bancorp Piper Jaffray, Crosspoint Venture Partners, Goldman Sachs, Hunt Ventures and Sevin Rosen Funds. http://www.telseon.com
Telseon, February 6, 2001

• Telseon’s industry partnerships include 360networks, Epoch Internet, Everest Broadband, Incyte Genomics, Level 3, Riverstone and StorageLink.
• Telseon is currently deploying scalable Ethernet access services in 20 US markets.

GENUITY AND YIPES ANNOUNCE NATIONWIDE PARTNERSHIP
Yipes will buy managed Internet connectivity services from Genuity to provision more than a third of its dedicated national backbone infrastructure. The long-haul bandwidth would be used to handle the growing traffic between Yipes’ regional optical IP networks.  In return, Genuity has invested $10 million in Yipes to help with its network rollout.  The companies also agreed to resell each other's services, such as VoIP, VPNs, local loop access and other new offerings.  http://www.yipes.com
Yipes, February 6, 2001

SYCAMORE COMPLETES ETHEROPTIC TESTING WITH FOUNDRY AND RIVERSTONE
Sycamore Networks completed Ethernet-over-optical interoperability testing between its SN 8000 platform and Foundry Networks’ BigIron Gigabit Ethernet switch and Riverstone Networks’ switch routers.  The companies said testing demonstrates availability of scalable carrier class Ethernet solutions between the IP and optical layer.  http://www.sycamorenet.com
Sycamore Networks, February 6, 2001

LEVEL 3 SIGNS $45 MILLION IN LARGE PRIVATE LINE TRANSPORT CONTRACTS
Level 3 Communications announced $45 million in new contracts to provide Private Line transport services either in the US or on the company's newly activated transatlantic cable.  The new big bandwidth customers include Infonet Services, Oracle, Telocity, Verestar, and two international communications companies.  Level 3 said it expects its Global Transport Services to grow significantly with the introduction in two weeks of a new optical transport program designed initially for large communications carriers.  The new program will feature annual price declines and service activation commitments, and provide a cost effective alternative for companies that might otherwise build communications networks or install electronics to "light" dark fiber.  http://www.level3.com/
Level 3 Communications, February 6, 2001

SPRINT TO BUILD 10 GBPS GLOBAL IP BACKBONE
Sprint unveiled plans to build a 10 Gbps backbone connecting key business centers in Europe.  The first node is already active at Sprint's European headquarters in London.  The company plans to have IP nodes in 14 other major European and Asian cities by the end of 2001. The 10 Gbps links between key business locations are expected to in place by the end of 2001.   As it builds out its own global IP network, Sprint will continue to provide global telecom services through agreements with its international partners.  http://www.sprint.com
Sprint, February 6, 2001

BT SELECTS APOGEE NETWORKS' NETCOUNTANT FOR ITS OWN INTRANET
British Telecommunications will use Apogee Networks' NetCountant Accountability system on its own intranet to monitor and rate all data usage by departments, subsidiaries and partners.  The network has approximately 100,000 Intranet users.  Apogee’s software would enable actual network bandwidth consumption to be billed back to the end-user of the network.   http://www.apogeenetworks.com
Apogee Networks, February 6, 2001

SPIRENT INTRODUCES NOISE IMPAIRMENT SYSTEMS FOR TESTING VDSL
Spirent Communications introduced noise impairment systems for testing VDSL and custom xDSL equipment performance applications.  The DLS 5200, which is a complementary product to the company’s existing noise impairment products for ISDN, HDSL, HDSL2, SDSL and ADSL conformance testing, is provided with a pre-packaged set of VDSL noise shapes for those international standards currently under development including ETSI VDSL and ANSI VDSL for VDSL equipment testing.  The equipment was developed by DLS, a division of Spirent Communications based in Ottawa, Ontario.  http://www.spirentcom.com
Spirent Communications, February 6, 2001

ADC TO ACQUIRE COMMTECH FOR ITS TELCO SERVICE ORDER SOFTWARE
ADC agreed to acquire CommTech Corporation, a provider of end-to-end service order management, provisioning and activation software, for approximately $185 million in stock (13.25 million ADC shares).  CommTech's FastFlow software suite includes order management, flow-through provisioning and service activation components.  ADC plans to add the capabilities to its own Singularit.e OSS suite for communications service providers.  CommTech claims more than 60 customers and partners, including CableVision, Network Plus and Verizon.  http://www.adc.com
ADC, February 6, 2001

ADC’s previous acquisitions in the network management space have included:

• Centigram Communications, 2000, a provider of Internet-enabled call management, next-generation messaging and unified communications
• Saville Systems, 1999, a developer of convergent billing and customer care software
• NewNet, 1997, a developer of SS7-based enhanced services software
• and Metrica, 1996, a developer of network performance and service assurance software. 

NATIONAL SEMICONDUCTOR TO ACQUIRE INNOCOMM FOR ITS WIRELESS CHIPSETS
National Semiconductor agreed to acquire innoCOMM, a start-up developer of chipsets for wireless networking applications, for approximately $130 million.  InnoCOMM’s expertise covers Bluetooth, HomeRF and 802.11 wireless Ethernet LAN technologies.  The company currently offers a single-chip Bluetooth radio transceiver manufactured in standard digital CMOS technology.  National Semiconductor said InnoCOMM's Bluetooth radio transceiver, combined with its own Bluetooth baseband technology, would lead to a complete single-chip Bluetooth solution.  National Semiconductor is based in Santa Clara, California.  InnoCOMM is headquartered in San Diego.  http://www.national.com
National Semiconductor, February 6, 2001

AGILENT CREATES $100 MILLION VENTURE GROUP
Agilent Technologies has formed Agilent Ventures to invest up to $100 million per year in start-up companies worldwide.   The venture fund will focus on early stage start-ups in the optical and wireless communications fields, as well as the life sciences arena.  The unit plans to invest $2-10 million in each company, as well as give business access to Agilent's technology.   http://www.agilent.com/about/newsroom/presrel/2001/05feb2001a.html
Agilent, February 5, 2001