Tuesday, July 31, 2007

ECI Telecom Posts Q2 Revenue of $164 Million

ECI Telecom reported Q2 revenue of $164 million, compared with $170 million in the second quarter of 2006 and $155 million in the first quarter of 2007. GAAP net income reached $24.8 million, or $0.20 per share on a fully diluted basis, compared with second quarter 2006 net income of $9.6 million, or $0.08 per diluted share.

Some highlights:

  • Revenues for the Transport Networking Division (reflecting the merger of the company's Optical Networks and Data Networking Divisions), totaled $109 million for the quarter. This represents a 15% increase from $95 million in the comparable quarter last year and up approximately $4 million compared with the first quarter of 2007.

  • Revenues for the Broadband Access Division totaled $50 million for the quarter, down from $66 million in the comparable quarter last year and up from $45 million in the first quarter of 2007.

  • Veraz Networks completed its initial public offering (IPO) in NASDAQ and ECI recorded gains totaling close to $40 million. Following the offering, ECI owns 27.5% (23% on a fully diluted basis) of the common stock of Veraz Networks.

  • On July 2, 2007, ECI announced that it entered into a definitive merger agreement for the Company to be acquired by affiliates of the Swarth Group and certain funds that have appointed Ashmore Investment Management Limited as their investment manager. ECI now expects this deal to close in Fall 2007.

"I am pleased with our second quarter results as they reflect the continued positive momentum in our business. Our transport business remains strong, growing 15% year-over-year, its sixteenth consecutive quarter of revenue growth... Our broadband business also marked another positive quarter, with 13% sequential growth, driven primarily by healthy demand from the Division's two principal customers. At the same time, expanding our customer base remains a strategic focus of the Division and our efforts are progressing as planned," stated Rafi Maor, ECI's President and CEO.


Tekelec Reports Q2 Sales of $110.0 Million

Tekelec reported revenue from continuing operations for the second quarter of 2007 was $110.0 million, down 8% compared to $119.1 million for the second quarter of 2006. For the second quarter of 2007, the Company had orders of $84.7 million, up 4% compared to $81.8 million for the second quarter of 2006. Backlog as of June 30, 2007 was $334.7 million compared to $360.0 million as of March 31, 2007.

On a GAAP basis, the Company reported income from continuing operations for the second quarter of 2007 of $3.8 million, or $0.05 per diluted share, compared to income from continuing operations of $15.7 million, or $0.22 per diluted share, for the second quarter of 2006.

During the quarter, Tekelec closed the sale of its Switching Solutions Group (SSG) to GENBAND.


Sylantro Systems Names Bill Russell Chairman of the Board

Sylantro Systems, which supplies feature servers for hosted VoIP services in carrier networks, appointed Bill Russell as non-executive Chairman of the Board. Pete Bonee, former chairman, remains a board director.

Russell served in a number of senior-level roles in his more than 20 years at HP, including vice president and general manager of the multi-billion dollar Enterprise Systems Group. http://www.sylantro.com

Hong Kong's iAdvantage Deploys Juniper M-series Routers

iAdvantage, a leading IT Infrastructure Provider (IIP) based in Hong Kong, is expanding its deployment Juniper Networks' M-series multiservice routers in its network. This upgrade increases network capacity between iAdvantage's data centers and Hong Kong's metropolitan-wide network hubs.

iAdvantage provides mission-critical network application, database and bandwidth services to some of Asia Pacific's most successful enterprises, including major financial institutions. The company has used Juniper Networks M-series routers since 2005.


NGT Supplies SIP-based VoIP for Atlantic Broadband

New Global Telecom (NGT) will become the managed services provider for Atlantic Broadband's SIP-based telephony solutions for both residential and business end users. The NGT service includes a range of residential and commercial feature packages, telephone numbers throughout the U.S., FCC-compliant 911, as well as key back office functionality including provisioning, usage rating or complete end user billing, as well as session border controller (SBC) management and network monitoring services. A key component of the service is integrated voice origination and termination services from Level 3.

Atlantic Broadband serves 286,000 customers located in four operating regions: central Pennsylvania, South Florida, Maryland/Delaware and Aiken, South Carolina.


Extreme Networks Reported Quarterly Revenue of $87 Million

Extreme Networks reported quarterly revenue of $87.1 million, up 6% from $82.4 million for the same period a year earlier. Net loss on a GAAP basis for the quarter was $5.0 million or a loss of $0.04 per diluted share.

"We're pleased with our U.S. business results, which show year-over-year revenue growth of 17 percent. We're experiencing strong demand for some of our newer products, such as the Summit X450 and the X250, and we are performing well in our vertical markets. We continue to drive the turnaround, focusing both on revenue growth and expense control," said Mark Canepa, president and CEO of Extreme Networks.


Time Warner Telecom Surpasses 10,000 Ethernet Ports for Enterprise Customers

Time Warner Telecom now has more than 10,000 retail Ethernet service ports in service to enterprise customers locally and nationally over its national backbone and metro fiber optic network.

Time Warner Telecom offers a broad service portfolio of local Ethernet services delivering Ethernet over wavelengths, switching infrastructure and SONET. In 2003, the company added a city-to-city Ethernet service using VPLS technology. And, in 2006, the company extended its portfolio to use copper facilities that enable connectivity to the branch office and remote medical clinics. About half of the company's enterprise customer Ethernet ports are at 100 Mbps, 1 Gbps and 10 Gbps port speeds.

Time Warner Telecom claims to have connected more enterprise buildings with fiber than any other competitive carrier in the U.S..


Acme Packet Posts Revenue of $27.0M, Up 8% sequentially

Acme Packet reported Q2 revenues of $27.0 million -- an increase of 8% sequentially and 41% year-over-year and the seventh consecutive quarter of both sequential and year-over-year revenue growth. The company achieved record quarterly pre-tax earnings of $7.2 million -- an increase of 5% sequentially and 34% year-over-year.

Acme Packet said it acquired 34 new service provider customers to expand its customer base to over 420 service providers, including 76 of the 100 largest carriers in the world.


American Airlines to test AirCell's In-Flight Wi-Fi over U.S.

American Airlines will conduct passenger testing of AirCell's Wi-Fi broadband Internet service on coast-to-coast flights over the U.S. beginning in 2008. Passenger testing will be conducted on American Airlines fleet of Boeing 767-200 aircraft that primarily fly transcontinental routes.



QUALCOMM and Exoteq Sign OFDM/OFDMA Deal

QUALCOMM and Exoteq, a mobile broadband solutions developer based in Denmark, signed a new, commercial OFDM/OFDMA license agreement that enables Exoteq to develop, manufacture and sell subscriber unit and modem card products for high-speed mobile broadband access based on OFDM/OFDMA technologies, including QUALCOMM's FLASH-OFDM technology. The royalties payable by Exoteq are at QUALCOMM's standard OFDM/OFDMA rates.


FiberTower Wins Backhaul Deal for Sprint Nextel's WiMax Buildout

Sprint Nextel awarded a contract to FiberTower to provide backhaul services in seven of its initial WiMax launch markets. The deployment will use Ethernet as the backhaul technology. Financial terms were not disclosed.

FiberTower's network architecture consists of both microwave and fiber trunks. It holds an extensive spectrum footprint in 24 GHz and 39 GHz bands.


One Minute Video: What is Dynamic Spectrum Management (DSM)?

One Minute Video: What is Dynamic Spectrum Management (DSM)?

Presented by Laura Howard

ECI Telecom