Wednesday, August 18, 2004

Swisscom and Telekom Austria End Merger Talks

Swisscom and Telekom Austria AG called off possible merger talks. Both parties agree on the advantages of a possible merger, but said under the current circumstances, they do not consider it possible to find a solution that would serve the interests of all concerned.

Marvell Delivers its 60 Gbps Ethernet Packet Processors

Marvell introduced a new 60 Gbps Ethernet Switching chipset aimed at a new generation of Ethernet switches featuring 10 GbE uplinks, dedicated ports running at 12 Gbps for stacking, and advanced QOS using policy control, all at full wire speed. New features available in the Prestera-DX250/260/270 packet processors include:

  • Policy Control List (PCL) -- Wire speed policy control guaranteeing IPv4/v6 Security, VLAN, and QoS ACL rules.

  • SecureControl -- A new approach to CPU traffic management functionality that enhances security by preventing problems, such as "Denial of Service" attacks.

  • Distributed Switching Architecture (DSA) -- an integrated approach enabling fabric-less stacking.

  • HyperG. Stack (HGS) -- Standard XAUI interface, which can be configured as 10 GbE or tuned to 12 Gbps enabling full wire rate back-to-back and stackable topologies.

  • The Prestera-DX250 offers 24GbE ports, while the DX260 offers 24GbE- plus two 10GbE-ports and the DX270 offers 24GbE- plus three 10GbE-ports.

Sampling is underway to key OEM customers.

Marvell's Q2 Net Revenues Increase 54% Y-O-Y

Marvell Technology Group reported record quarterly revenue of $297.2 million, an increase of 54% over net revenue of $192.9 million for the same period last year and a 10% sequential increase from net revenue of $269.6 million in the preceding quarter. Net income (GAAP) was $28.6 million, or $0.10 per share (diluted), compared with a net income under GAAP of $9.4 million, or $0.03 per share (diluted) for the same period a year earlier.

The period marked the 27th consecutive quarter of sequential revenue growth for Marvell. Also, the 10% sequential increase in quarterly revenue was Marvell's 11th consecutive quarter where sequential revenue growth was at least 10%. The company highlighted several areas of strong growth:

  • the adoption of WLAN into consumer electronic devices. During the quarter, Marvell expanded its list of design wins into high volume applications such as cellular handsets, gaming devices, digital cameras, MP3 players, PDAs and emerging home entertainment multimedia client devices. Marvell expects to commence volume shipment into such emerging applications in the third quarter including initial shipments of its 802.11solution into a major consumer gaming application. Also, a number of Marvell's WLAN design wins for cellular handsets have now commenced the field trial stage this summer.

  • introduced a 60 Gbps single chip solution. The new Prestera devices, which utilize the Marvell distributed switching architecture, feature security, advanced QOS and full integrated support for
    IPv6. The company said its entire Prestera product family continues to enjoy strong revenue growth and design wins for infrastructure switching applications across all market segments from the SMB to large scale Enterprise.

  • storage electronics for the hard disk drive market. During the quarter, Marvell enjoyed continued solid revenue growth from market share gains in the traditional hard disk drive market.

  • during the quarter, Marvell also commenced volume shipments of its All-into-1 and LiveAP WLAN solutions that were just introduced earlier this year. The technology allows the integration of many WLAN functions into a single device that were previously separate functions handled by multiple devices.

Navtel and the Technical University of Berlin Develop Test Applications

Navtel Communications and the Technical University of Berlin (Technische Universit├Ąt Berlin) have signed a cooperation agreement aimed at generating new multimedia test applications for future services that run on Next Generation converged Network (NGcN) infrastructures. Navtel will supply the test equipment required to simulate a large number of network users in order to measure performance under extreme load conditions. Furthermore, testing on softswitches, routers, application servers and other components of this next generation converged Network will be performed to ensure adequate conformance to publicly recognized standards and interoperability among vendors. The research results will be used by both parties to generate test concepts and continual enhancements.

Ixia Upgrades VoIP Testing Platform

Ixia introduced an enhanced IxVoice 3.0 platform designed to bridge the gap between functional and performance testing of traditional PSTN and VoIP technologies. Key features of this release include extensive predefined test cases for SS7, MGCP, NCP, and include RTP support that has a five times performance increase, and significantly enhanced ability to assess packet loss, jitter, and one-way delay. IxVoice now includes full support for T.38 conformance testing and also addresses a wide range of test applications with the ability to emulate SIP, H.323, MGCP, SCCP (Cisco's Skinny protocol) signaling, and RTP media streaming. A new API has also been added to reduce test setup and execution time by providing the facilities to configure, control, and automate IxVoice application via TCL/Expect scripts.

CIENA Reports Revenue of $75.6 Million, Loss of $141.5 Million

CIENA reported quarterly revenue of $75.6 million, representing a 1.2% sequential increase, and an increase of 10.4% for the same period a year ago. CIENA's reported net loss (GAAP) for the quarter was $141.5 million, or a net loss of $0.25 per share.

The company highlighted the product diversification strategy it launch a year ago, noting that these new market sectors represented more than 35% of its total revenue for the quarter. Some highlights for the quarter:

  • completed the acquisitions and the operational integration of both Catena Networks and Internet Photonics

  • gross margin was 24.9%, compared to 11.0% in the preceding quarter

  • overachieving cost-reduction targets in the quarter by approximately $10 million.

  • secured three new customers for the new CN 1000 next-generation broadband access platform and agreed to product trials with an RBOC.

  • recognized initial revenue from Verizon for DN 7000 series multiservice edge switching deployments.

  • ended the quarter with cash and short- and long-term investments valued at $1.36 billion.

Nortel to Re-focus Strategy on Network Convergence; Trim 3,500 Jobs

Nortel Networks issued a key status update, including preliminary results for Q1 and Q2 of 2004, and plans for a 10% workforce reduction resulting in the loss of 3,500 jobs over the next four months. The workforce reduction is expected to be substantially completed by year-end and will lead to reorganization costs of approximately US$300 million to US$400 million. The company is targeting annualized cost savings of approximately US$450 million to US$500 million once the reductions have been implemented.

Regarding the ongoing investigation in financial irregularities, the company said seven more executives have been terminated "for cause," bring the total number of executives dismissed as a result of the scandal to 10. Nortel Networks is seeking to re-coup the bonuses paid to these executives. The independent review is expected to be completed in September.

Looking ahead, Nortel Networks is undertaking a major reorganization. A key emphasis of the corporate strategy will be on converged networks. The company said it believes significant opportunities for growth exist across the marketplace and particularly in emerging markets such as China and India as customers evolve their networks to high performance converged networks underpinned by high security and reliability. Nortel Networks will have two main divisions: a carrier focused organization and an enterprise focused organization.

The company has appointed a new chief strategy officer to drive partnerships, new markets and acquisitions. Nortel Networks will emphasize partnerships and alliance more heavily going forward. It will name a chief marketing officer to drive overall marketing strategy. The company acknowledged that marketing has been weak in the past, but will be reinvigorated to promote the company's products and positions. Nortel Networks will also undertake a strategic review of embedded services to assess opportunities in professional services business; and it will put a distinct focus on government and defense customer segments. The company will also appoint a VP of Ethics, reporting to the CEO and Board of Directors.

Some other highlights of the status update:

  • Estimated unaudited revenues for the first six months of 2004 were approximately US$5.1 billion, with approximately US$2.5 billion in the first quarter and US$2.6 billion in the second quarter.

  • Estimated unaudited net earnings per share in the first half of 2004 were US$0.00 to US$0.02, with US$0.00 to US$0.01 in the first quarter and US$0.00 to US$0.01 in the second quarter, in each case on a fully diluted basis.

  • Gross margin for the first six months of 2004 is estimated at approximately US$2.2 billion, or approximately 43% of revenues, with approximately US$1.1 billion in each of the first and second quarters. Margins in the second quarter reflect lower margins related to initial wireless deployments and the mix of wireless revenues in the quarter. “With the restatement moving toward completion, we are focusing our full attention on driving the business forward with a focus on costs, cash and revenues as overall strategic imperatives. With our proven strengths in high performance high reliability networks, supported by our new simplified organization, we are well-positioned to deliver the secure, reliable converged networks customers are demanding to increase their own competitiveness.�?

Thai Bank Implements National Network with Cisco

Standard Chartered Nakornthon Bank, one of Thailand's leading banks, selected Cisco Systems for an IP backbone linking its head office in Bangkok with its 41 branches. The network uses Cisco Catalyst 6500 intelligent multilayer modular switches, Cisco Catalyst 3500 switches, and Cisco 3600 and 2600 Series multiservice access routers. The bank is using the network for new applications, including VoIP to its branch offices.

UC Davis Deploys Voice-over-Wi-Fi with Sprint, Cisco

The UC Davis Medical Center, a 576-bed hospital located in Sacramento, California, has deployed a private 802.11g WLAN to enhance their wireless voice communication system. The customized solution, which was deployed by Sprint, allows physicians, nurses and administrators to communicate instantly with each other to share patient and administrative information from virtually anywhere in the medical center. The networks uses Cisco Aironet Access Points and the Vocera Communications System for the voice component.

The system consists of a software application and a voice-controlled badge that enables instant, hands-free wireless communication between staff members. Potential uses for such a Wi-Fi network include a variety of advanced voice and data solutions such as alignment of voicemail with the system, integration of the nurse call and alarm notification system, electronic medical record sharing and providing/authorizing patient orders through multiple wireless devices.

China Telecom Selects Alcatel to Deliver 1.3 Million DSL Lines

China Telecom selected Alcatel Shanghai Bell to supply 1.3 million Digital Subscriber Lines (DSL) in southern China. The contract covers the deployment of the Alcatel 7300 Advanced Services Access Manager (ASAM) by China Telecom's subsidiaries in 15 provinces and municipalities across southern China such as Shanghai, Zhejiang, Fujian, Guangdong and Guangxi. Upon completion of the project in September 2004, China Telecom will significantly enhance its network capacity to offer new multimedia applications such as video streaming, broadcast video, video on demand and on- line gaming to end users.

Alcatel said the contract represents 40% of the total bid and makes it the lead supplier. The contract was won through Alcatel Shanghai Bell, Alcatel's flagship Chinese company.

AT&T Expands Consumer VoIP Service, Offers In-Side Wiring Service

AT&T has extended its CallVantage consumer VoIP service to 21 new Markets in seven states. In addition, the company announced that calling to Canada will now be included as part of the unlimited nationwide service at no extra charge and that it is extending the special six-month introductory rate of $19.99 a month through 30-September-2004. The cost of service is then $34.99 a month.

The service is now available in 39 states and Washington, D.C. -- a total of 121 markets.

AT&T also introduced an inside wiring service designed to connect a customer's existing home telephone configuration. For a fee, AT&T will dispatch a trained technician to the customer's home. The technician will reconfigure existing lines and telephone jacks, install additional jacks if required, and provide limited assistance with service set-up. The interval for scheduling service is two to five days.

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