Monday, July 21, 2008

Gmartket Deploys Force10 Networks TeraScale E-Series

Force10 Networks announced that Gmarket has deployed theTeraScale E-Series family of switch/routers to power its online shopping mall. Specifically, the Force10 TeraScale E600 is at the foundation of Gmarket's data center. The fully redundant 10 Gigabit Ethernet core ensures line-rate traffic throughput from the servers and a real-time, always available shopping experience for its users. Financial terms were not disclosed.

Tech Mahindra Wins $700 Million Contract with BT

BT has named Tech Mahindra as its preferred vendor for a five year systems and process transformation program. The contract was valued at US$700 million. Tech Mahindra will be assisting BT in accelerating BT Group's transition to the platform-based services strategy focused on improving its customers' experience of right first time and cycle time.

Tech Mahindra said it has worked with BT for over 20 years on a range of projects in IT, infrastructure and business process outsourcing.

Infinera Reaches Q2 Revenue of $161.1 million

Infinera reported Q2 revenue of $161.1 million compared to $138.3 million in the first quarter of 2008 and $58.4 million in the second quarter of 2007. GAAP gross margins were 50% in the second quarter of 2008 compared to 45% in the first quarter of 2008 and 28% in the second quarter of 2007. GAAP net income was $42.9 million, or $0.44 per diluted share.

"Our second quarter results reflect strong shipments of both our chassis and tributary adapter modules," said Jagdeep Singh, president and chief executive officer of Infinera. "We grew revenues from international customers to 22 percent and added two new customers in the quarter to bring our total roster to 44. We generated operating profits and cash from operations while maintaining our investments to expand our technology lead as the world's leading optical network based on photonic integration."

GENI Project Awarded NSF Grant

The Global Environment for Network Innovations (GENI), a project managed by BBN Technologies, has been awarded a three year grant worth approximately $4 million per year from the US National Science Foundation to perform GENI design and risk-reduction prototyping. The funds will be used to contract with 29 university-industrial teams selected through an open, peer-reviewed process. The first year funding will be used to construct GENI Spiral 1, a set of early, functional prototypes of key elements of the GENI system.

GENI will support a future, experimental network infrastructure that will allow researchers from diverse disciplines across computer and information science and engineering, as well as from economics and the social sciences, to escape today's Internet-circumscribed research environment.

Korea's Gmarket Deploys Juniper's MX960 Ethernet Services Routers.

Korea's Gmarket, one of the world's largest consumer e-commerce websites, is deploying Juniper Networks' MX960 Ethernet Services Routers.

The MX-series routers boost Gmarket's network capacity and manageability by consolidating multiple gigabit Ethernet switching solutions into an easily-managed topology that leverages Juniper's JUNOS software, Juniper's single-source code network operating system. The MX960's Access Control List (ACL) capabilities also fortify Gmarket's network security. In addition, Gmarket deployed Juniper Integrated Security Gateways (ISG) -- purpose-built, high-performance firewall and VPN gateway -- to secure against network threats. Financial terms were not disclosed.

This upgrade follows Gmarket's previous deployment of Juniper's NetScreen-5400 firewalls.

Avanex Approves 15-to-1 Reverse Stock Split

Avanex's Board of Directors approved a reverse split of its common stock at a ratio of 15-for-1, with a planned effective date of August 12, 2008. Accordingly, as of the effective date, each fifteen shares of issued and outstanding common stock and equivalents will be converted into one share of common stock.

Panama's Telecarrier Selects Occam for Broadband Access

Telecarrier, a rapidly growing telecommunications service provider in Panama, has selected Occam Networks as the principal broadband access supplier for its expansion plans throughout the country. Financial terms were not disclosed.

Telecarrier is enjoying significant growth as a result of Panama's Export Processing Zones program, a public-private partnership between Panama's government and the private sector to spur the establishment and growth of manufacturing, assembly, distribution and other operations by foreign businesses. Currently, Telecarrier offers local and long distance telephone service, DSL, VoIP, data center hosting and related services. As part of the first phase of their next generation network deployment, the company will upgrade these services to include TLS, VPNs and additional Ethernet service offerings.http://www.occamnetworks.com

ADC Trims Financial Outlook for Fiscal Year 2008

ADC updated its financial guidance, saying it now expects sales from continuing operations for fiscal 2008 to be in the range of $1.500-$1.520 billion. Previous annual guidance provided on June 4, 2008 was that ADC's fiscal 2008 sales would be in the range of $1.520-$1.540 billion. ADC now expects to have year-over-year sales growth for fiscal year 2008 of 13%-15%.

The company said that compared to previous fiscal 2008 sales guidance, the updated financial outlook primarily reflects lower sales of copper and fiber connectivity products in the United States resulting mainly from customers' recent budget reviews and ordering patterns, as well as the resulting effects on original equipment manufacturers' demand for ADC products.

"We remain firmly committed to managing our business strategically for the long term, but the inherent short-lead time nature of our business sometimes results in quarter-to-quarter market-related movements, up or down, in our sales expectations," said Robert E. Switz, president and CEO of ADC. "Current industry conditions are driving a change in our financial outlook for this fiscal year, but we see no change in our customers' long-term commitment to investing in the network infrastructure required to deliver broadband services to business, residential and mobile subscribers."

Ericsson Reports Sales Growth of 7%

Ericsson reported Q2 revenue of SEK 48.5 billion and operating income amounted to SEK 4.7 billion. Sales growth in constant currencies is estimated to 7% year-over-year. Sales were up 2% year-over-year including negative effects from the continued decline in USD. Effects of acquisitions and divestments equaled out in the quarter.

Gross margin amounted to 37.0% (43.0%) and declined year-over-year, mainly due to the shift in business mix with a high proportion of new network buildouts. Sales related to software and IPRs were back to a more normal level after last quarter's slightly higher level.

"The overall business activity shows stable development. With no major changes in the market environment, we still find it prudent to plan for a flattish mobile infrastructure market in 2008 and our focus on adjusting our cost base remains. Sales have continued to pick up in the US, Western Europe has remained slow while we see good development in most high-growth markets. The continued decline of the USD impacts sales growth and margins negatively also in this quarter," stated Carl-Henric Svanberg, President and CEO of Ericsson.

Some highlights of the quarter:

  • Networks Sales in Networks were down 1% year-over-year. The continued USD decline contributed negatively to the sales development. There is a steady demand for GSM equipment in high-growth markets, especially in Asia, which drives the growth for network rollout services. The margins improved slightly sequentially. Still, the proportion of buildouts of new networks in high-growth markets, including accelerating volumes in India, remains high and puts pressure on Networks' margins. Sales related to software and IPRs in the quarter returned to a more normal level.

  • Professional Services Sales in Professional Services grew by 7% year-over-year. In the quarter, the IPX operations were transferred to segment Multimedia, negatively impacting Professional Services sales by 2%-points year-over-year. Adjusted for this and in constant currencies, sales growth amounted to 11%. Operating margin was stable sequentially.

    Managed services sales increased both year-over-year and sequentially, despite the reduced scope of the 3 UK contract announced in the fourth quarter 2007. During the quarter, six new contracts were signed. The total number of subscribers in managed operations now amount to 210 million, of which more than 50% are in high-growth markets.

  • Multimedia Sales growth was 16% year-over-year despite the decline in USD. Effects from divested activities more or less offset the sales effects of acquired businesses and the transfer of the IPX operations. Operating income was slightly below break even level. The income includes the previously announced capital gain of SEK 0.2 b. from the divestment of the enterprise PBX solutions business.

  • Tandberg Television and LHS show encouraging development. Multimedia is still in its build-up phase and sales and results will fluctuate between quarters.

Tellabs Reports Q2 Revenue of $432 million, down 19% YoY

Tellabs reported Q2 revenue of $432 million, down 19% from $535 million in the second quarter of 2007. International revenue rose 20% to $145 million, up from $121 million in the year-ago quarter. Tellabs earned $39 million or 10 cents per share on a GAAP (U.S. generally accepted accounting principles) basis, including a one-time benefit of $35 million or 9 cents per share resulting from the favorable completion of IRS audits. In the second quarter of 2007, Tellabs earned $30 million or 7 cents per share on a GAAP basis.

Gross profit margins were 35%, better than expected. The company said improved gross profit margin improvements on the Tellabs 7100 system resulted from cost reductions, additional customers and a beneficial mix including more transponder cards.

"Three Tellabs products delivered record quarterly revenues in a tough market, and we're encouraged that Tellabs' innovations are gaining traction with customers worldwide," said Rob Pullen, Tellabs president and chief executive officer. "As we continued to apply focus and discipline, our second-quarter gross profit margins outperformed our expectations."

Some highlights:

  • Broadband -- Second-quarter 2008 revenue from the broadband segment totaled $231 million, down 6% from $246 million in the second quarter of 2007. Within the broadband segment:

    Data (multiservice routers) revenue was $45 million, up 28% from $35 million in the year-ago quarter. Quarterly revenue from the new Tellabs 8600 managed edge system reached a new high.

    Access revenue was $103 million, down 23% from $135 million in the year-ago quarter.

    Managed access revenue was $83 million, up 8% from $77 million in the year-ago quarter. Quarterly revenue from the Tellabs 6300 managed access system reached a new high.

  • Transport -- Second-quarter 2008 transport revenue totaled $141 million, down 37% from $223 million in the year-ago quarter. Quarterly revenue from the Tellabs 7100 optical transport system reached a new high, excluding deferred revenue recognized in the year-ago quarter. During the second quarter of 2008, Tellabs recognized revenue from two Tellabs 7100 system customers outside the United States.

  • Services -- Second-quarter 2008 services revenue was $60 million, down 8% from $66 million in the year-ago quarter.

Broadcom Ships Wi-Fi + Bluetooth + FM Integrated Chip

Broadcom began shipping its flagship wireless combination chip (BCM4325) that combines Wi-Fi, Bluetooth and FM functionality into a single 65 nanometer (nm) silicon die. Broadcom predicts such multi-function chips will account for nearly one-third of all wireless connectivity solutions shipped in 2012. The company is already sampling its second generation combo solutions, which leverage advanced technologies to provide richer communications and connectivity for next generation products. Examples of future functionality could include 802.11n for multimedia and gaming products, GPS for personal navigation devices (PNDs), low energy Bluetooth technology for sensor applications and other technologies in development.

Sweden's Icomera to acquire UK's Moovera Networks

Icomera AB has agreed to acquire UK-based Moovera Networks, a supplier of fixed and mobile communications systems.

Icomera specializes in Internet connectivity for trains, offering backhaul-agnostic communications gateways that support concurrent satellite, cellular and trackside networks in a single in-vehicle system. The technology automatically switches to use the best wide area network without session interruption.

With the acquisition of Moovera Networks, Icomera will add Moovera's multi-radio Moovbox product family to create the most advanced portfolio of fixed and mobile broadband gateways on the market. In addition to vehicular applications, Moovbox gateways have been used increasingly for public safety and outdoor municipal wireless applications, and by cellular network operators seeking to expand into Wi-Fi hotspot services.

"The market for Internet connectivity on public transport is developing at a very rapid pace," said Ola Sjolin, Chief Executive Officer at Icomera. "Whether for Wi-Fi hotspots, CCTV monitoring, vehicle tracking or streaming entertainment, real-time connections to buses and trains are increasingly in demand."http://www.icomera.com

Verizon Wireless Adds 1.5 Million Customers in Q2

Verizon Wireless added 1.5 million new customers (net), giving it a total of 68.7 million customers, including 66.7 million retail customers, which are those it directly serves and manages and who choose the Verizon Wireless brand. The company's full results will be reported on July 28.

Broadcom Reports Q2 Revenue of $1.2 Billion, up 16% YoY

Broadcom posted Q2 net revenue of $1.201 billion, an increase of 16.3% compared with the $1.032 billion reported for the first quarter of 2008 and an increase of 33.7% compared with the $897.9 million reported for the second quarter of 2007. Q2 net income (GAAP) was $134.8 million, or $.25 per share (diluted), compared with GAAP net income of $74.3 million, or $.14 per share (diluted), for the first quarter of 2008, and GAAP net income of $34.3 million, or $.06 per share (diluted), for the second quarter of 2007.

"Despite continued economic turmoil, demand for Broadcom's wired and wireless communications products strengthened in the second quarter," said Scott A. McGregor, Broadcom's President and Chief Executive Officer. "Our quarterly product revenue, excluding royalties, surpassed the $1.0 billion milestone for the first time in our history in the second quarter, highlighting the growing role that communications plays within our everyday lives at home, at work or while on-the-go. "