Sunday, October 25, 2009

Tellabs Posts Q3 Revenue of $389 Million

Tellabs' Q3 2009 revenue totaled $389 million, compared with $424 million in the third quarter of 2008. Almost half of overall revenue came from growth products, including the Tellabs 6300, 7100, 7300, 8600 and 8800 systems and professional services. Tellabs earned $29 million or 7 cents per share on a (GAAP) basis, compared with a loss of $999 million or $2.51 per share in the year-ago quarter, which included a non-cash goodwill charge of $988 million.

For the third quarter of 2009, Broadband segment revenue was $206 million, Transport segment revenue was $128 million and Services segment revenue was $55 million.

Motorola Pushes Deep Fiber Architecture for Cable Operators

Motorola introduced new Deep and Cable Passive Optical Networks (CablePON) products -- including an end-to-end, radio frequency over glass (RFoG) offering -- that enable cable operators to migrate their networks to fiber deep architectures, while leveraging existing investments.

The new additions to Motorola's portfolio include:

  • GX2-EM1000 Family of High-Performance 1550nm Broadcast Transmitters - These transmitters, key components in RF Video Overlay, RFoG and fiber deep applications, deliver distortion-control performance out to 1 GHz. A version of the transmitter is optimized to increase the link distance and the number of subscribers served by Passive Optical Networks.

  • N2U-OA300 Series --a family of optical amplifiers for Passive Optical Networks and large distribution systems with versions featuring integrated wavelength combiners to reduce loss and save rack space.

  • SG4000 Dual Return Receiver for RFoG networks - This analog return receiver module enhances the SG4000 optical node platform for use in RFoG deployments to increase link budgets and the number of subscribers that can be served over limited fibers. It is a single slot double density return receiver for SG4000 that aggregates RFoG returns from subscribers for transmission to the hub or headend.

  • BTN100 Optical Node for Fiber Deep - This optical node upgrades existing Motorola SG2000, SG2440 and BTN nodes to 1 GHz and converts existing Motorola BT amplifiers to 1 GHz nodes. It offers optical redundancy and 2X return segmentation capability.

  • MBN DOCSIS Transponder for Fiber Deep - This is an interoperable transponder for the SG4000, MBN100, and BTN100 optical nodes. Using DOCSIS transport eliminates the additional cost of HMTS.

  • Q-series Taps and Passives for Bandwidth Expansion - This new series of taps and passives offer 1.5 GHz RF bandwidth for enhanced forward bandwidth and high band return for data, telephony and commercial services.

"In the face of increasing competition, cable operators are looking for innovative and economical solutions to help them deliver advanced services to their customers from a trusted source," said Joe Cozzolino senior vice president and general manager, Access Networks Solutions, Motorola Home and Networks Mobility. "Motorola's Fiber Deep and CablePON solutions offer cable operators the ability to affordably migrate fiber deeper into their networks to deliver the advanced services their customers demand."

Alloptic Announces Multivendor EPON ONT Interoperability

Alloptic has extended the capabilities of its edge10 OLT to interoperate with ONT designs that are based on EPON chipsets from PMC-Sierra and Teknovus. Interoperability of ONTs via a common OLT allows the network operator to support a wide variety of applications and customer segments over a common infrastructure. Multiple vendors can create ONTs for specific market requirements giving network operators tailored, yet cost-effective ONT solutions. Leveraging the Alloptic edge10 OLT allows those different ONTs to be deployed on a common fiber infrastructure, even on the same PON.

Alloptic Releases Managed MicroNode RFoG ONUs

Alloptic released a new range of "MicroNode" RFoG optical networking units (ONU): the 1000 series Managed MicroNode RFoG ONU featuring remote monitoring and control capabilities.

Alloptic said that even though the R-ONU is the critical optical enabler in an RFoG architecture, it has traditionally been an unmanaged device. Its new Managed MicroNode RFoG ONU gives service providers the ability to monitor ONU operating parameters as well as remotely enable and disable service. With this control, service connects and disconnects are achieved without a service dispatch or truck roll, significantly decreasing operational costs and decreasing theft-of-service losses.

Alloptic Debuts Return Path Receiver

Alloptic announced the availability of high performance Return Path Receivers that provide 7 dB noise performance improvement over typical analog return receivers and almost 3 dB improvement over other Alloptic receivers. This ultra low noise performance translates into the ability to carry, with 15dB of margin, 4 bonded 64QAM channels in a DOCSIS 3.0 return path over an SCTE-standard, non-proprietary RFoG architecture operating with a 29dB optical budget.

Alloptic's EVRRL410 series Return Path Receiver product line includes designs for both typical and high RF output requirements, as well as ones used for long reach and fiber-starved deployments. All receivers are temperature-hardened in 1RU form factors, with both front and rear access versions.

Cable Operators Call for "Content Neutrality" Along with Net Neutrality

The American Cable Association, which represents cable network operators, is calling on the FCC to stop content providers from using wholesale arrangements to restrict consumer access to lawful content. ACA cited Disney's as an example where the most powerful sports programmer denies access to content, unless a consumer subscribes to a particular broadband provider.

"ACA believes that content distributors such as ESPN360 should live under the same Net Neutrality rules as broadband service providers," American Cable Association President and CEO Matthew M. Polka said. "The foremost principle of Net Neutrality is that consumers can access the legal content of their choice. ESPN360 fails that principle, and any regulation must address that."

ACA is urging the FCC not to overlook the importance of Content Neutrality because rules solely focused on broadband network providers would leave a gaping hole in the regulatory regime and expose consumers to an assortment of harms that would likely drive up the cost of broadband, a result totally at odds with the Obama Administration's goal of making broadband access both universal and affordable.

ACA said ESPN360's closed Internet business model will effectively force those with no interest in watching sporting events on the Internet to subsidize those who routinely want to access ESPN360's content.

"Despite having the technological know-how to provide this content directly to subscribers for a fee, ESPN has opted to block access to this Web content unless an access provider agrees to place this financial burden on all of its broadband customers," Polka said. "That is wrong, and the FCC must ensure that each consumer has the individual choice to buy or not buy ESPN360."

Polka also stressed that Net Neutrality regulations should permit ISPs to engage in reasonable network management practices and should give them the right to experiment with a range of consumer pricing models, especially consumption- and metered-billing options.

RadiSys Unveils 40G ATCA Chassis, Switch and Processor Modules

RadiSys introduced its 4th generation of AdvancedTCA (ATCA) products designed for next generation 4G and wireline broadband network elements.

The RadiSys 4th generation ATCA platforms combine a 40G chassis, a 40G switch and other 10G and 40G assets in a pre--integrated platform. The 40G chassis includes enhanced per--slot power and cooling capability along with 40G backplane connectivity. The company said investment protection for its telecom equipment supplier (TEM) customers was a key design criteria such that the 40G platform supports all existing boards and software for its 10G ATCA solution.

The 40G switch provides increased I/O density and native 40G switching to the node slots. The reuse of the switch management software will provide consistent API access, thereby providing reuse of any development with the company's existing 10G switch.

The chassis node slots are capable of supporting next-gen packet processing and multi-core CPU power requirements. Overall, the platform promises a 4x performance improvement in switching and equal improvement in processing capability at a platform level.

Additionally, RadiSys will be expanding the switch management capabilities to include a "node router" which enables the elimination of a stand--alone router that would typically provide connectivity between an edge device and the transport network. RadiSys' investments today in next generation ATCA products ensures a smooth transition for customers from 10G products to 40G, protecting their investment in ATCA.

Ericsson Appoints New CEO

Ericsson's in-coming CEO Hans Vestberg has appointed Jan Frykhammar CFO of November 1, 2009. Frykhammar will also become Executive Vice President as of January 1, 2010. Jan Frykhammar is currently head of business unit Global Services and Senior Vice President. He joined the company in 1991.

Hitachi to Acquire Packet Core Assets from Nortel

Hitachi agreed to certain assets from Nortel that are associated with the development of next generation packet core network components (excluding legacy packet core components for $10 million. The assets, which come from Nortel's GSM and UMTS businesses, include software to support the transfer of data over existing wireless networks and the next generation of wireless communications technology, including relevant non-patent intellectual property, equipment and other related tangible assets, as well as a non-exclusive license of certain relevant patents and other intellectual property.

Consummation of the transaction is subject to approval by the United States Bankruptcy Court for the District of Delaware and the Ontario Superior Court of Justice as well as the satisfaction of regulatory and other customary conditions. The sale is expected to close in 2009.

Verizon Adds 1.2 million Wireless, 198K FiOS Internet Customers

Verizon's total Q3 operating revenues grew 10.2 percent to $27.3 billion, compared with the third quarter 2008, including revenues from Alltel, which Verizon acquired in January 2009. On a pro forma basis (consolidating the operating results of Verizon and the former Alltel as though the acquisition had occurred on Jan. 1, 2008), operating revenue growth was 0.6 percent. Diluted earnings per share (EPS) were 41 cents in the third quarter, compared with 59 cents per share in the third quarter 2008. O

Verizon's growth was driven by its wireless operations, where revenues totaled $15.8 billion, up 24.4 percent year over year and up 4.9 percent on a pro forma basis. The company's FiOS network added customers as well, including 198,000 net new FiOS Internet customers and 191,000 net new FiOS TV customers.

Cash flow from operations totaled $23.1 billion for the first nine months of 2009, up 16.0 percent, or $3.2 billion, over the same period last year. Free cash flow (cash flow from operations minus capital expenditures) totaled $10.7 billion, up $3.3 billion over the same period last year.

"Verizon continues to generate strong cash flow, which we have used in building the foundation for sustainable, long-term shareowner value," said Verizon Chairman and CEO Ivan Seidenberg. "Even through the worst of the recession, we have continued to raise our dividend and to add new customers, expand markets and grow revenues based on the power and innovation of Verizon's wireless, broadband and global networks."

Some highlights from Q3:

  • Wireless retail (non-wholesale) gross customer additions were up 15.0 percent over the prior year. On a pro forma basis, retail gross customer additions decreased by 8.3 percent.

  • Verizon Wireless had 89.0 million customers at the end of the quarter, an increase of 25.7 percent year over year, and 6.3 percent on a pro forma basis. Verizon Wireless is the largest wireless company in the U.S. in terms of total customers and revenues.

  • The company also has the most retail customers of any U.S. wireless provider and continued to grow its high-quality base, adding 1.0 million net retail customers in the quarter, excluding acquisitions and adjustments, for a total of 86.3 million retail customers.

  • Total churn and retail postpaid churn were 1.49 percent and 1.13 percent, respectively.

  • Revenues totaled $15.8 billion, up 24.4 percent year over year and up 4.9 percent on a pro forma basis. Service revenues were $13.5 billion, up 23.7 percent year over year and up 6.1 percent on a pro forma basis as demand continued to grow for data services. Data revenue grew to $4.1 billion, up 48.1 percent and up 28.9 percent on a pro forma basis.

  • Total service ARPU decreased 2.2 percent year over year and 0.8 percent on a pro forma basis to $51.04. Total data ARPU increased to $15.59, up 17.2 percent year over year and 20.7 percent on a pro forma basis.

  • Wireless operating income margin, adjusted for merger integration and acquisition costs, was 28.3 percent, up 1.0 percentage point year over year and up 1.4 percentage points pro forma. Adjusted on the same basis, EBITDA (earnings before interest, taxes, depreciation and amortization) margin on service revenues (non-GAAP) was 46.1 percent, an increase of 1.9 percentage points year over year and 1.3 percentage points on a pro forma basis.


  • Verizon added 198,000 net new FiOS Internet customers. The company served 3.3 million FiOS Internet customers by the end of the quarter, a 49.2 percent year-over-year increase.

  • FiOS Internet penetration (customers as a percentage of potential customers) increased to 28.5 percent by the end of the third quarter, with the product available for sale to 11.5 million premises. This compares with a 24.2 percent penetration at the end of the third quarter 2008.

  • Verizon also added 191,000 net new FiOS TV customers. The company served 2.7 million FiOS TV customers by the end of the quarter, a 67.7 percent year-over-year increase.

  • FiOS TV penetration increased to 24.9 percent by the end of the third quarter, with the product available for sale to 10.9 million premises. This compares with a 19.7 percent penetration at the end of the third quarter 2008.

  • Consumer broadband and video revenues in wireline mass markets (which include consumer and small-business customers) represented growth of 30.7 percent compared with the third quarter 2008. This increase contributed to 1.2 percent revenue growth in consumer markets served by Verizon's wireline network.

  • Broadband connections totaled 9.2 million at the end of the third quarter, an 8.5 percent year-over-year increase. This is a net increase of 63,000 from the second quarter 2009, as the increase in FiOS Internet connections more than offset a decrease in DSL-based High Speed Internet connections.

  • Revenue growth from broadband and video services boosted consumer ARPU to $75.04 in the third quarter 2009, a 12.6 percent year-over-year increase.

  • FiOS ARPU is more than $137, driven primarily by "triple-play" bundles of voice, Internet and TV services.

  • Worldwide sales of strategic business services -- such as IP, managed services, Ethernet and security solutions -- generated $1.6 billion in revenue in the quarter, up 1.0 percent from
    the third quarter 2008.

Qualcomm Establishes Subsidiary for Mobile Open Source Development

Qualcomm has established a separate wholly-owned subsidiary to optimize open source software with Qualcomm technology. The new Qualcomm Innovation Center (QuIC), which is brought together by a dedicated group of engineers, will be headed by Rob Chandhok, who previously served as senior vice president of software strategy for Qualcomm CDMA Technologies.

"Open source and community-driven software development is becoming increasingly important to the wireless industry," said Chandhok, "and QuIC is committed to meaningful participation in these development efforts. To fulfill this commitment and to provide focus to this effort, Qualcomm has transferred experienced software engineers to QuIC. These engineers will focus on such important open source initiatives as Linux and Webkit, and on open source operating systems such as Symbian, Android and Chrome."

Ceragon Posts Revenue of $44.7 Million, up 6% Sequentially

Ceragon Networks reported Q3 2009 revenue of $44.7 million, down 23% from $58.1 million for the third quarter of 2008 and up 6% from $42.2 million in the second quarter of 2009. Net income (GAAP) for the third quarter of 2009 was $1.1 million or $0.03 per basic share and diluted share, compared to net income of $3.5 million or $0.09 per basic and diluted share in the third quarter of 2008.

Motorola Adds Module for CMTS Enabling 150 Mbps Upstream

Motorola introduced a decoupled upstream module for its BSR 64000 Integrated Cable Modem Termination System (I-CMTS), enabling cable operators to meet their subscribers' demands for higher average and peak upstream bandwidth.

The Motorola BSR 64000 I-CMTS solution, with the new RX48 decoupled upstream module, offers nearly 1.5 Gbps of upstream capacity per module. The upstream-only module is the "sister" card of the TX32 decoupled downstream module.

When combined with S-CDMA, Motorola calculates that cable operators can unlock additional usable spectrum in their networks to increase upstream capacity by up to 50 percent. By deploying the RX48 decoupled upstream module in conjunction with S-CDMA, cable operators can use this new capacity to increase average data rates through higher order modulation, or implement DOCSIS 3.0 upstream channel bonding to achieve up to 150 Mbps of peak upstream bandwidth.

The RX48 decoupled upstream module will be available to customers in mid-2010.

Extreme Posts Quarterly Revenue of $66 Million

Extreme Networks reported net revenue of $66.3 million for its fiscal first quarter of 2010, compared to $89.5 million in the fiscal first quarter of 2009. Non-GAAP net loss was $4.9 million or a loss of $0.05 per diluted share, compared to non-GAAP net income of $2.0 million or $0.02 per diluted share in the year-ago quarter. For the first quarter, net revenue in North America was $26.9 million, revenue in EMEA was $28.1 million, and revenue in APAC was $11.4 million. That compares to revenue of $35.7 million in North America, $41.6 million in EMEA, and $12.2 million in APAC in the year-ago fiscal first quarter.

"Last week we completed a reorganization to streamline operations, simplify the organization and reduce recurring costs. The effect of this action was to lower our quarterly breakeven to less than $70 million in revenue and reduce quarterly operating expenses by approximately $2.5 million. The reorganization consolidated the Business Units into a simple functional organization with centralized Marketing and Engineering. We believe this will create significant efficiencies and accelerate decision-making," said Bob L. Corey, CFO and acting President & CEO of Extreme Networks. "As previously announced, our supply chain was constrained during Q1 impacting our ability to deliver product. We are disappointed with our performance in Q1 and are actively improving availability from our Supply Chain to meet Customer demand for our products in Q2. We remain committed to our products, markets, channels and customers."