Wednesday, May 2, 2007

Nortel Posts Q1Revenues of $2.48 billion, up 4% YoY

Nortel reported Q1 2007 revenues of $2.48 billion, up 4% compared to $2.39 billion for the first quarter of 2006 and $3.32 billion for the fourth quarter of 2006. Excluding the impact of its UMTS Access divestiture, revenues increased by 12 percent year over year. There was a net loss of $103 million, or $0.23 per common share on a diluted basis. The gross margin for the quarter was 40.4 percent.

Some highlights:

  • Carrier Networks (CN) revenues in Q1 were $1.01 billion, a decrease of 6 percent compared with the year-ago quarter and a decrease of 32 percent sequentially. In the first quarter, the strong growth in CDMA was more than offset by declines in the GSM/UMTS and in the circuit and packet voice businesses. Excluding the impact of the UMTS Access divestiture, CN revenues increased by 5 percent in the first quarter of 2007 compared with the year-ago quarter.

  • Enterprise Solutions (ES) revenues in the first quarter of 2007 were $597 million, an increase of 31 percent compared with the year-ago quarter and a decrease of 24 percent sequentially. The year over year growth was driven by strong growth in both voice and data businesses.

  • Global Services (GS) revenues in the first quarter of 2007 were $448 million, a decrease of 11 percent compared with the year-ago quarter, and a decrease of 17 percent sequentially. Excluding the impact of the UMTS Access divestiture, GS revenues increased by 1 percent in the first quarter of 2007 compared with the year-ago quarter.

  • Metro Ethernet Networks (MEN) revenues in the first quarter of 2007 were $373 million, an increase of 27 percent compared with the year-ago quarter and a decrease of 17 percent sequentially. The year over year increase in revenues was primarily due to the completion of a large optical and a large data contract and continued traction in the Multiple System Operator market.

THUS Selects Ciena's CN 4200 for London Metro Net

THUS plc has chosen Ciena's CN 4200 FlexSelect Advanced Services Platform to support the delivery of a new high-capacity, next-generation network to the London Metropolitan Network (LMN). As the capital's metropolitan research and education network, the LMN provides more than one million students with access to advanced services and online learning applications, and also connects member institutions to JANET, the UK's research and academic network.

The deployment will connect 137 higher and further education sites across Greater London, offering 20 Gbps capacity to meet the growing demand from educational institutions for higher bandwidth.

Specifically, Ciena's CN 4200 platform will be used to interconnect LMN's three major points of presence (PoPs), namely the University of London Computer Centre (ULCC), Imperial College and Kings College Waterloo Campus, providing two optical transmission wavelengths between each site. Each wavelength will deliver 10 Gbps of capacity. A fourth network link will be deployed to provide Gigabit Ethernet point-to-point connectivity between the ULCC and Queen Mary, University of London. THUS' networks will also interconnect to SuperJANET5, which links users across the UK's education community, and is also supported by Ciena's optical solutions.

THUS has already built bespoke networks based on the CN 4200 platform for other enterprise customers. Additionally, THUS has deployed Ciena's next-generation platforms within its own UK- wide next-generation network, enhancing performance and reliability as well as increasing capacity.

ECI Telecom Posts Quarterly Revenue of $155 million

ECI Telecom reported Q1 revenues of $155 million, compared with $162 million in the first quarter of 2006 and $154 million in the fourth quarter of 2006. GAAP net income reached $18.7 million, or $0.15 per share on a fully diluted basis, compared with first quarter 2006 net income of $3.1 million, or $0.03 per diluted share. Some highlights:

  • Revenues for the Transport Networking Division (reflecting the merger of ECI's Optical Networks and Data Networking Divisions), totaled $105 million for the quarter. This represents a 15% increase from $91 million in the comparable quarter last year and approximately $1 million lower than the fourth quarter of 2006. The sequential decline is due to lower data networking revenues offsetting continued growth in optical networking revenues. On a GAAP basis, operating income for the Division reached $6.8 million, while on a pro forma, non GAAP, basis, operating income reached $9.1 million.

  • Revenues for the Broadband Access Division totaled $45 million for the quarter, down from $62 million in the comparable quarter last year and up from $40 million in the fourth quarter of 2006. On a GAAP basis, operating income for the Division totaled $3.8 million, while pro forma, non GAAP operating income was $4.1 million.

Covad Launches Bonded T1 Service

Covad Communications launched a Bonded T1 service for small businesses and distributed enterprises. Covad's Bonded T1 service combines two 1.5 Mbps T1 lines together to deliver symmetrical 3.0 Mbps data speeds. The service is available nationwide throughout the same footprint as Covad's standard T1 service.

DIRECTV Debuts Portable Satellite TV System

DRECTV began marketing its Sat-Go ("Satellite-to-Go") portable satellite TV system. The briefcase-like design that includes a 17-inch LCD monitor with integrated DIRECTV Receiver, flat antenna and replaceable/rechargeable lithium-ion battery. The unit also includes AC/DC adaptors for home and car. When not being used as a portable/ travel unit, the DIRECTV Sat-Go can also be utilized as an additional in-home DIRECTV Receiver and television. The list price is $1,499.

HP's DRAGON Provides Telecom Data Retention

HP announced a new data retention solution for telecommunication service providers that are being asked by governments to join the fight against global terrorism, organized crime and drug trafficking.

The HP Data Retention and Guardian ONline (DRAGON) solution aims to help service providers to collect and store data from a variety of sources, such as fixed and mobile telephony, email and voicemail, Internet usage, IP telephony, text messaging, and even usage of custom calling features such as call waiting, three-way calling and call forwarding.

HP said the system is a scalable system that enables them to capture massive volumes of voice and data traffic on their networks, retain it for months and years, and retrieve selected records -- almost in real time -- if asked by government agencies.

HP DRAGON is currently deployed with seven telecom service providers in Italy and Turkey. The European Union has approved data retention requirements and its 27 member nations are incorporating the legal framework into national legislation.

Security features are enabled through powerful user authentication controls as well as data and document encryption. All operations are fully auditable.

The HP DRAGON offering consists of a wide variety of products and services, including HP Integrity servers, HP ProLiant servers, ATCA-based HP blade servers, HP ILM Tiered Storage solutions including HP StorageWorks XP Arrays, HP StorageWorks Enterprise Virtual Arrays, and nearline and offline storage products, HP DRAGON software, HP BSS software, and HP services and support.

The solution also includes important technologies from industry leaders such as Cisco (application-aware networking) and Oracle (database).

Silver Star Telecom Deploys Hatteras' Mid-band Ethernet

Silver Star Telecom, a wholesale services provider based in Vancouver, Washington, has turned up a new level of advanced Ethernet services using the Hatteras Networks Mid-Band Ethernet platform. Now available to wholesale and retail customers throughout select metro markets in Oregon and Washington, Silver Star Telecom's new Ethernet service will cater to speed-starved business customers at copper-fed locations.

"Hatteras Networks' carrier-class Mid-Band Ethernet solutions enable us to provide Ethernet and IP services in excess of 36Mbps symmetrical to customer locations without access to fiber," said Clint Warta, president and founder of Silver Star Telecom.

BigBand Posts Revenues of $52.8 million, up 62% YoY

In its first quarter as a public company, BigBand Networks reported net revenues of $52.8 million, an increase of 62% over $32.6 million in the first quarter of 2006. GAAP net loss for the quarter was $1.0 million, or ($0.05) per diluted share, compared to a net loss of $1.1 million, or ($0.09) per diluted share, in the first quarter of 2006. Excluding special charges, net of tax, non-GAAP net income for the first quarter of 2007 was $5.8 million, or $0.09 per diluted share.

Gross margin improved to 57.5% on a GAAP basis and 58.0% on a non-GAAP basis.

BigBand Networks completed its initial public offering of common stock on March 20, 2007 and raised net proceeds of approximately $88 million through the issuance of 7.5 million shares. As of March 31, 2007, the Company had $144.6 million in cash, cash equivalents and marketable securities.

Microsoft Acquires ScreenTonic for Mobile Advertising Serving

Microsoft agreed to acquire ScreenTonic SA, a start-up based in Paris, for its mobile advertising platform. ScreenTonic's mobile solutions provide advertisers with a range of ad formats, from display to text, as well as ad management and reporting capabilities, while serving the needs of mobile operators and independent publishers equally. Financial terms were not disclosed.

"The mobile Internet is an extraordinary vehicle for brands to connect with their target audiences, because devices like cell phones enable interaction to take place virtually anywhere or anytime," said Steve Berkowitz, senior vice president of the Online Services Group at Microsoft. "The acquisition of ScreenTonic will be part of our long-term strategy to deliver ad experiences that map to the environment. Together, we will be able to provide relevant ads where consumers are, when they are actively engaged and communicating."

NETGEAR to Acquire Infrant for RAID-based NAS Products

NETGEAR has acquired privately-held Infrant Technologies, a start-up that developed enterprise-level storage technology for small businesses and professional home users. NETGEAR will pay $60 million in cash for Infrant. Infrant shareholders may receive a total additional payout of up to $20 million in cash over the three years following closure of the acquisition if specific revenue targets are reached.

Infrant's "ReadyNAS" family of network attached storage (NAS) products implements redundant array of independent disks (RAID) data protection. The ReadyNAS lineup is powered by Infrant's proprietary network storage processor, Linux-based "RAIDiator" operating system and patent-pending Expandable Protection (X- RAID) technology, which allows for automatic RAID volume expansion as additional drives are added.

"Infrant's offerings complement NETGEAR's current Storage Central offering, which is based on Zetera Corporation's micro SAN (Storage Area Network) technology, and accelerates NETGEAR's participation in the expanding market for networked attached storage. The ReadyNAS portfolio also complements NETGEAR's digital home entertainment products, including the EVA8000 Digital Entertainer HD which streams digital content from the PC, the Internet and NAS storage devices to the TV," said Patrick Lo, Chairman and CEO of NETGEAR.

Verizon Business Reports Enterprise Revenue Growth

Verizon Business reported positive year-over-year revenue growth in Q1, saying it outpaced other major U.S.-based enterprise carriers. The company also posted both year-over-year and sequential revenue growth for strategic services such as Private IP, Ethernet and managed services both for the past quarter and every quarter since Verizon Business was created in January 2006.

Verizon Business highlighted several significant enhancements that were rolled out as part of its global network. Specific actions included:

  • An enhancement and deepening of Verizon Business' Private IP global footprint and expanded availability of Ethernet Private Line service to an additional six European countries.

  • Introduced a much-anticipated Ethernet Virtual Private LAN Service (E-VPLS), which enables businesses and government agencies to extend their Ethernet local area networks and link their offices and work locations.

  • Extended SLAs for managed WAN services to Latin America.

  • Expanded its network-based Denial of Service security offering to Europe; launched of Managed Web Content Services, which halt Internet threats such as phishing, spyware, malware and viruses; and introduction of its Secure Gateway - Firewall (custom) service, which for the first time enables U.S.-based multinational customers to centrally adjust security policies in real time across their global IP networks.

  • Deployed additional next-generation routers during the first quarter to enhance its global MPLS network.

  • Expanded its network infrastructure capability to enable more than two-thirds of the U.S. population to use local and long-distance VoIP services, a more than twofold increase in the Verizon Business' U.S. VoIP footprint.

  • Filed a landing license application with the FCC to become the U.S. landing operator of the Trans-Pacific Express cable system between the United States and mainland China.

  • Improved its public IP network capabilities by implementing a new regional peering agreement in the Asia-Pacific region that will enhance performance and reduce latency for large-business and government customers in this region.

  • Named as a prime contractor for the U.S. General Services Administration's 10-year, multibillion-dollar Networx Universal program.

  • Completed a new agreement with the state of California to provide services under the state's CALNET 2 program and, internationally, the Danish Foreign Ministry extended its existing global Verizon Private IP network agreement.

  • Completed significant agreements during the quarter with companies including Bear Stearns, COOP Systems, Englobal, Harleysville Insurance and Rent-A-Center.

Hughes Awarded SATCOM-II Contract

Hughes Network Systems has been awarded a contract under the recently announced General Services Administration's (GSA) Satellite Services-II (SATCOM-II) program to provide commercially available, advanced broadband satellite network solutions to U.S. government agencies. The entire SATCOM-II program is estimated to be worth $750 million over five years.

Under SATCOM-II all U.S. federal civilian and Department of Defense (DoD) agencies are able to procure an expanded range of broadband satellite solutions, including the following offerings provided by Hughes and its team members:

  • Broadband primary, high availability and back-up networks (VSATs)

  • Satellite capacity

  • Point-to-point and mesh connections (SCPC)

  • Transportable services

  • Mobile satellite voice and data services

  • Broadcast satellite services

  • Managed network services

  • Applications solutions (e.g., distance learning, streaming video, telemedicine, and Continuity of Operations (COOP))

The Hughes SATCOM-II team includes AEP Networks, C-COM, CACI, Eutelsat America, GlobalSat LLC, Helius, IMC, Intelsat, Mobile Satellite Ventures, MotoSAT, SES Americom, Thuraya, XTAR LLC, and others.

"The SATCOM-II contract will fundamentally change the way federal agencies use satellite technologies," said Tony Bardo, assistant vice president of government services at Hughes.

Broadcom to Acquire Octalica for MoCA Capabilities

Broadcom Corporation agreed to acquire Octalica, a start-up specializing in silicon solutions for MoCA (Multimedia over Coax Alliance) home networking applications. MoCA enables distribution of high quality digital multimedia content throughout the home over existing coaxial cable.

In connection with the acquisition, Broadcom expects to pay approximately $31 million in cash in exchange for all of the outstanding shares of Octalica's capital stock and other rights of Octalica. Octalica is headquartered in Newton Centre, Massachusetts, with an R&D team in Tel Aviv, Israel. The company has 27 employees overall.

"MoCA is a key technology that has gained significant traction with our OEM customers and the major cable, satellite and telecommunications service providers in the U.S., who have shown a clear preference for in-home coax networking," said Dan Marotta, Senior Vice President and General Manager of Broadcom's Broadband Communications Group.

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Deutsche Telekom Seeks Enterprise Partner, Sharpens Domestic Focus

Deutsche Telekom is committed to change to position itself as leader in broadband, said René Obermann, Chairman of the Deutsche Telekom Board of Management, speaking at the company's shareholders' meeting in Cologne.

Looking back on 2006, René Obermann described the past financial year as difficult: "Competition, especially in relation to pricing in the fixed network business, reached a degree of intensity during the year that even caught industry experts by surprise."

Looking forward, Obermann said the company would pursue a "focus, fix and grow" strategy based four central initiatives:

  • Deutsche Telekom must considerably improve its competitive position in Germany. The home market continues to be the core market with a share of over 50 percent of revenues.

  • Internationally, the Group aims to grow by focusing on Mobile Communications.

  • Mobile Internet and Web 2.0 trends must be leveraged to generate new growth.

  • In the enterprise segment, Deutsche Telekom is seeking a strong partner in order to make the business more successful thanks to a broader international presence and economies of scale.

Additionally, Deutsche Telekom has started divesting non-core strategic assets. This process is already under way in parts of its real-estate business. Deutsche Telekom is currently holding exclusive talks with France's Neuf Cegetel on the sale of Club Internet. This transaction is expected to be finalized in the first half of 2007.hrrp://