Wednesday, October 22, 2008

Arista Names Jayshree Ullal as CEO, Andreas Bechtolsheim as Chairman

Arista Networks (formerly known as Arastra), a start-up based in Menlo Park, California, announced the appointment of Jayshree Ullal as President and Chief Executive Officer, and Andreas Bechtolsheim as Chief Development Officer and Chairman.

Jayshree Ullal was previously Senior Vice President of Cisco Systems, responsible for the company's Datacenter, Switching and Services Group.

Andreas Bechtolsheim, a well-known Silicon Valley entrepreneur, was a Co-Founder of Sun Microsystems and a Senior Vice President and Chief Architect for the Systems Group at Sun. From 1996 to 2003, Andy was Vice President and General Manager of the Gigabit Systems Business Unit at Cisco Systems.

Arista Networks is developing highly-scalable 10 Gigabit Ethernet switches for large data center and computing environments. Arista says cloud computing requires fundamental improvements in network scalability, reliability, and latency beyond what traditional enterprise networks have offered.

The company's Extensible Operating System (EOS) software architecture is designed for cloud computing applications and features self-healing and live in-service upgrade capabilities. Arista has been shipping a portfolio of 10 Gigabit Ethernet products since May 2008 to customers in several vertical markets, including financial markets, high-performance computing, public sector, manufacturing, Internet data centers, healthcare, and media/entertainment.

"In the upcoming era of cloud computing, the web will be much more than just a means of delivering content -- it will be a platform in its own right, requiring an extremely scalable cloud networking infrastructure," said Jayshree Ullal, President and CEO of Arista. "A similar transformation is happening in the enterprise where many customers are consolidating existing datacenters into much larger virtualized computing clouds. We look forward to working with customers of all sizes to solve these important networking challenges."

The product line include the Arista 7148S, a 1-rack-unit L2/L3/L4 48-port 10GbE SFP switch with 800 Gbps of bandwidth; the Aristra 7124S 24-port 10GbE switch with 480 Gbps of bandwidth, and the Aristra 7148SX 48-port 10GbE switch with 960Gbps of bandwidth.

Ixia's Q3 Revenue Rises to $47.3M, Notes Lehman Impairment Charge

Ixia reported $47.3 million, which compares to $45.9 million in the immediately preceding second quarter of 2008 and $44.0 million in the third quarter of 2007. For the third quarter of 2008, Ixia reported net income on a GAAP basis of $483,000, or $0.01 per diluted share, compared to net income of $1.9 million, or $0.03 per diluted share, for the third quarter of 2007. Net income for the third quarter of 2008 reflects an impairment charge of approximately $4.3 million related to bonds ($5.0 million face value) issued by Lehman Brothers Holdings.

"Despite a challenging economic environment, we displayed positive momentum on several fronts and delivered good operating results during the quarter," said Atul Bhatnagar, Ixia's president and chief executive officer. "Our service provider and government businesses helped propel revenue growth, while strong software sales and expense control drove our non-GAAP operating margins for the quarter to just over 15%.

Juniper Reports Q3 Revenue of $947.0 million, up 29% YoY

Juniper Networks reported solid revenues, expanding margins, and improved profitability. Net revenues for the third quarter of 2008 rose 29% on a year-over-year basis to $947.0 million. The company posted GAAP net income of $148.5 million, or $0.27 per diluted share, and non-GAAP net income of $175.6 million, or $0.32 per diluted share. The non-GAAP EPS figure represents an increase of 45 percent from the $0.22 per diluted share reported for the third quarter of 2007. The reconciliation between GAAP and non-GAAP results of operations is provided in a table immediately following the Net Revenues by Reportable Segment table below.

"Juniper delivered a solid quarter during a period of global economic uncertainty," stated Kevin Johnson, chief executive officer of Juniper Networks. "We continue to enhance our product portfolio, expand our reach to customers, and improve operational execution. These factors have enabled us to drive revenue growth and improve operating margins. The long-term growth potential of the high-performance networking market is strong and, even in this uncertain economic climate, we are cautiously optimistic about our near-term opportunities."

NETGEAR's Q3 Revenue Drops 12% from Q2

NETGEAR reported Q3 net revenue of $179.4 million, a 6% decrease as compared to $191.7 million for the third quarter ended September 30, 2007, and a 12% decrease as compared to $204.5 million in the second quarter ended June 29, 2008. Net income for Q3 2008 (GAAP) was $3.1 million, or $0.09 per diluted share. This compared to net income of $13.3 million for the third quarter of 2007 and to net income of $11.1 million in the second quarter of 2008. Diluted earnings per share (GAAP) was $0.37 for the third quarter of 2007 and $0.31 for the second quarter of 2008.

Gross margin on a non-GAAP basis in the third quarter of 2008 was 35.5%, as compared to 34.0% in the year ago comparable quarter, and 33.2% in the second quarter of 2008.

"The September quarter showed weakness in demand for our consumer products across both retail and service provider channels in all geographies, resulting in a quarter-over-quarter and year-over-year decline in consumer product shipments. We believe the weakness in the global economy and tight credit markets worldwide are causing softness in end-user demand. As a result of the current environment, we expect subdued spending conditions to persist over the next few quarters until consumer confidence returns to the market. SMB (small and medium-sized business) demand is holding well with continuous momentum. The impact of current economic conditions on our operating margin was offset by continued successful product and operating cost reductions, healthy sales of ReadyNAS and Smart Switches and the reduction in air freight cost requirements as a result of increased on hand and available inventory. In the third quarter, our service provider net revenue was approximately $31.4 million, about 18% of our total net revenue, as compared to 22% in the year ago quarter, and 27% in the second quarter of 2008," commented Patrick Lo, Chairman and Chief Executive Officer of NETGEAR.

Ikanos Reports Q3 Revenue of $24.2 million

Ikanos Communications reported Q3 2008 revenue of $24.2 million compared with revenue of $29.9 million for the second quarter of 2008 and revenue of $27.3 million for the year ago period. GAAP net loss for the third quarter of 2008 was $26.7 million, or $0.93 per share, on 28.6 million weighted average shares. This compares with a net loss of $4.0 million, or $0.14 per share, on 29.3 million weighted average shares in the second quarter of 2008 and with a net loss of $13.0 million, or $0.45 per share, on 28.7 million weighted average shares in the third quarter of 2007.

"Our third quarter results represent continued deployments of our VDSL2 and residential gateway products used by service providers worldwide. These deployments underscore the desire for higher levels of bandwidth to support new revenue-generating services like high-definition IPTV," said Michael Gulett, Ikanos' president and CEO. "Since the Board appointed me to the CEO role three months ago, I have refined Ikanos' priorities, realigned our resources to better serve our customers, and have begun to improve the way we define our new products to address broader markets. These changes will help us build upon our leadership position in designing and developing products that enable advanced broadband services in the digital home."

In addition, Ikanos announced that it has retained the investment banking firm Barclays Capital as its financial advisor to assist it in exploring and evaluating strategic alternatives to maximize shareholder value.

Level 3 Reports Q3 Revenue of $1.07 billion

Level 3 Communications reported consolidated revenue was $1.07 billion for the third quarter 2008, compared to $1.06 billion for the third quarter 2007. Second quarter 2008 consolidated revenue was $1.09 billion. Total Communications revenue for the third quarter 2008 was $1.05 billion, compared to $1.04 billion in the third quarter 2007 and $1.07 billion in the second quarter 2008. The net loss for the third quarter 2008 was $120 million, or $0.08 per share, compared to a net loss of $174 million, or $0.11 per share for the third quarter 2007.

Core Communications Services revenue, which includes Core Network Services and Wholesale Voice Services, was $964 million in the third quarter 2008, a 6 percent increase over $909 million in the third quarter 2007, or $899 million on a Normalized Basis. Core Communications Services revenue was $972 million in the second quarter 2008, or $954 million on a Normalized Basis.

Core Network Services revenue was $791 million in the third quarter 2008, compared to $756 million in the third quarter 2007 and $797 million in the second quarter 2008, or $746 million and $779 million on a Normalized Basis for the third quarter 2007 and the second quarter 2008, respectively.

Wholesale Voice Services revenue in the third quarter 2008 was $173 million compared to $153 million in the third quarter 2007 and $175 million in the second quarter 2008.

"Our operating results for the quarter show the continuing margin expansion and growth in Consolidated Adjusted EBITDA," said James Crowe, president and CEO of Level 3. "Our year over year improvements were achieved through Core Communications Services revenue growth and our continued disciplined approach to cost management. And despite the current economic environment, we believe that our extensive fiber based network and full suite of services position us well to attract additional market share."

Alcatel-Lucent Releases "Zero Touch" Photonic Service Switch

Alcatel-Lucent announced the worldwide commercial availability of its 1830 Photonic Service Switch (PSS), a metro WDM platform offering a "Zero Touch Photonics" value proposition. Alcatel-Lucent said its Zero Touch Photonics eliminates the need for frequent on-site interventions and provides a WDM network that is more flexible to design and install, easier to operate, manage and monitor, where wavelength services can be deployed faster and reconfigured according to more dynamic traffic demands.

The Alcatel-Lucent 1830 PSS features a fully tunable and reconfigurable (T&ROADM) architecture for wavelength switching, and integrates optical monitoring capabilities for end-to-end photonic traffic monitoring and fault localization at the wavelength level. Key features include:

  • High-density multiplexer/demultiplexer (mux/demux) per network element (NE)/degree

  • Wavelength Tracker monitors and traces each wavelength at any point in the network

  • Static, tunable/reconfigurable optical add/ drop multiplexer (T/ROADM) with single-wavelength add/drop granularity

  • Up to 44 wavelengths 100 GHz ITU WDM per fiber pair

  • Support for the full range of network topologies, including ring, point-to-point and arbitrary optical mesh topologies.

According to the business case developed by Alcatel-Lucent Bell Labs, a network built with the new concept of the 1830 PSS can expect to see a more positive return than one built with a fixed optical add-drop multiplexer. A baseline case of expected traffic growth yields a 94% improvement in net present value (NPV) of investment. Scenarios built using more optimistic and pessimistic traffic growth levels delivered similar results, according to the company.

"For service providers, controlling capital budget, network performance and operating expenses are just as important as building their revenue stream," said Romano Valussi, President of Alcatel-Lucent's Optics activities. "Based on Zero Touch Photonics, the Alcatel-Lucent 1830 PSS accelerates time to service, simplifies operations, and improves performance for better total cost of ownership."
  • In 2007, Alcatel-Lucent acquired Canadian-based Tropic Networks, a developer of metro optical transport systems, for an undisclosed sum. This transaction builds upon the collaboration the two companies established in July 2004 with the Alcatel-Lucent investment and global supply agreement. Tropic Networks features a "Wavelength Tracker" technology that tags each wavelength in the DWDM layer with a unique signature that tracks, monitors and reports faults -- without requiring any additional DWDM transponders. This capability even distinguishing between multiple instances of the same color traveling through the network. Tropic said its Wavelength Tracker allows carriers to expand their optical services without adding unnecessary cost, yet still maintaining critical management capabilities. Tropic supports an IP-over-DWDM capability that allows third party transponders to be launched directly from the switch/router into the DWDM layer together with associated optical management and power control. A major cable operator has been using this IP over DWDM solution in their network for several years.

Verizon Wireless Offers Private Network Static IP

Verizon Wireless is now offering Static IP addressing option for enterprise customers. The new Private Network Static IP feature lets customers communicate more securely and consistently with their wireless devices by using a combination of Private IP addressing and dedicated connectivity. By using Static IP on the Verizon Wireless Private Network, enterprise customers can request data on demand from a specific device such as a wireless router whenever and wherever needed.

The Verizon Wireless Private Network with Static IP for mobile devices can be set up for a one-time fee of $500.00 and is compatible with Verizon Wireless PC cards, wireless routers, embedded laptops or mobile Internet devices, including smartphone

Vonage Gains Internet Telephony Patent

Vonage was recently granted a U.S. patent called "Method and Apparatus for Enhanced Internet Telephony." The invention, which was filed for patent in 2003, makes it less likely for customers to encounter dropped calls, incomplete attempted calls or other communication problems resulting from typical router function and behavior. Specifically, the patent -- No. 7,417,981 -- pertains to improvements in Internet telephony where Network Address Translation (NAT) is required. The patent addresses the issue of a router losing an outbound port during an Internet telephone connection. To avoid the router timing out and closing the outbound port, the patent causes the media terminal adapter to send an outbound message to the Internet telephony regional data center.

AT&T Completes IP/MPLS Network over 40 Gbps Optical Backbone

AT&T has completed the transition of IP traffic to its next-generation, consolidated IP/MPLS backbone network. AT&T describes its new full-mesh optical platform as the world's largest deployment to date of 40 Gbps transport. The company's entire U.S. ultra-long haul network -- more than 80,000 fiber-optic wavelength miles -- now uses this 40-gigabit network technology, known as OC-768. AT&T began turning up 40-gigabit service in volume in its network in the second half of 2006 after completing multiple field trials.

The AT&T IP/MPLS backbone network serves as the foundation for all AT&T Internet and IP services, carrying traffic ranging from consumer broadband to wireless data to mission-critical enterprise applications such as unified communications, on-demand content services and utility computing. The network also carries substantial Internet traffic from around the world.

In addition, AT&T Labs researchers and industry partners announced a breakthrough test using emerging 100-gigabit technologies to carry data totaling 17 terabits per second (Tbps) over a single strand of optical fiber. Specifically, AT&T researchers, working with NEC Corporation of America and Corning Incorporated, recently completed a successful test of such technologies that demonstrated data transmission at 114 Gbps over each of 161 separate wavelength channels on a single optical fiber, transporting a total capacity of 17 Tbps over 622 kilometers. This new record for backbone transport used fiber and optical amplifiers that are compatible with those used today.

AT&T noted that in recent years, IP traffic on its backbone has grown about 60 percent year over year. By 2018, IP traffic on the AT&T network is projected to be a staggering 5,600 percent greater than what it is today. AT&T currently carries about 16 petabytes of total IP and data traffic on an average business day, the equivalent of a 2.5-megabyte music download for every man, woman and child on the planet.

Sierra Wireless Develops 21 Mbps HSPA+ Modems for Telstra's "Next G"

In collaboration with Telstra, Qualcomm, and Ericsson, Sierra Wireless is developing the first wireless data devices for the HSPA+ standard, which offer peak download speeds of 21 Mbps over Telstra's "Next G" network -- three times faster than currently available HSPA modems. Shipments for customer trials are expected to begin in coming months, with a commercial launch to follow.

HSPA+ is also known as HSPA Evolution or Evolved HSPA (eHSPA). In addition to significantly increasing data speeds, the standard reduces latency, boosts network capacity, and provides an enhanced user experience.

Telstra recently confirmed it is on track to begin rolling out the new technology to the Next G wireless network by the end of this year.