Monday, March 29, 2010

3Com Reports Quarterly Revenue of $346 Million, up 6.5% YoY

3Com reported quarterly revenue of $345.9 million, compared to revenue of $324.7 million in the corresponding period in fiscal year 2009, a 6.5 percent increase. All regions delivered double-digit revenue growth over the same fiscal year 2009 quarter, except China. Total revenue in our China based operations was down 1.3 percent from the same prior year period, primarily the result of a 77.9 percent decline in sales to Huawei, which were $12.4 million in the quarter. China direct sales were $165.9 million in the quarter, a 29.7 percent increase over the corresponding prior year period.

3Com's gross margin was 60.4 percent in the third quarter of fiscal year 2010, compared with gross margin of 57.2 percent in third quarter of fiscal year 2009. On a non-GAAP basis, gross margin was 60.5 percent in the third quarter, compared with 57.4 percent in the same prior year period.

3Com's operating profit margin was 6.5 percent in the quarter, up from 0.5 percent in the corresponding prior year period. On a non-GAAP basis, operating profit margin was 13.9 percent in the third quarter, compared with 11.3 percent in the third quarter of the prior year.

Net income in the quarter was $41.4 million, or $0.10 per diluted share, compared with net income of $1.9 million, or $0.00 per diluted share in the third quarter of the prior fiscal year. On a non-GAAP basis, third quarter fiscal year 2010 net income was $67.2 million, or $0.16 per diluted share, compared with net income of $49.1 million, or $0.13 per diluted share, in the corresponding prior year period.

Mformation Teams with Amdocs on Mobile Device Customer Care

Mformation Technologies, which supplies advanced mobile device management (MDM) solutions to wireless operators, has entered into a partnership with Amdocs to deliver mobile device support that is integrated with Amdocs CES customer management solutions. This enables customer-care organizations within mobile operators to have full real-time device visibility and access to critical subscriber and device information from one central customer care console. With this combined solution, mobile device visibility and diagnostics is seamlessly integrated into the workflow of the Amdocs customer management solution.

"Enabling customer care personnel in call centers to support mobile devices more quickly and effectively is a growing priority for mobile operators. Partnering with Amdocs combines the market-leading customer management solution with the most advanced market-leading mobile device technology, creating a winning combination that will significantly improve the experience of customers when they urgently need technical support," said Rowan Scranage, SVP of Business Development and Strategy, Mformation.

Telefónica Spain to Implement 42 HSPA+ with NSN

Telefónica Spain has selected Nokia Siemens Networks to upgrade its 3G radio network to HSPA+, in preparation for the next generation of mobile communications.
The three-year project will enable Telefónica Spain to increase data download speeds from 7.2 Mbps to 42 Mbps. The project will use Nokia Siemens Networks' LTE-ready Flexi Base Stations. In addition, Nokia Siemens Networks will provide its NetAct network management system to efficiently monitor, manage and optimize Telefónica's network. The modernization project also foresees the possibility of providing 3G and GSM access simultaneously using the same 900 MHz band of radio spectrum, once the regulatory authorities allow it. Financial terms were not disclosed.

XO Picks NSN's Optical Transport for 40G Network

XO Communications is deploying Nokia Siemens Networks' hiT 7300 DWDM 40 Gbps platform to provide a high-capacity, cost-efficient and scalable transport system. NSN said its platform was chosen for its high degree of modularity and because it is based on a common hardware platform, which saves staff training time and OPEX, and reduces the number of spare parts needed to be stocked. Financial terms were not disclosed.

In addition to the hiT 7300, Nokia Siemens Networks will supply its leading Transport Network Management System (TNMS) to optimize the network's operations through centralized control and supervision. The agreement also includes Nokia Siemens Networks' professional services for network implementation and care. Financial terms were not disclosed.

Taiwan's Chunghwa Telecom Added 568,000 FTTx Subscribers in 2009

Taiwan's Chunghwa Telecom recorded a strong growth in FTTx subscriptions in 2009, with 568,000 net additions bringing its total to 1.64 million subscribers. ADSL subscribers decreased by 575,000 to 2.67 million. By the end of 2009, the number of ADSL and FTTx subscriptions with a service speed greater than 8 Mbps reached 2.0 million, representing 46.8% of total broadband subscribers, compared to 36.9% at the end of 2008.

In the mobile domain, as of December 31, 2009, Chunghwa had 9.27 million mobile
subscribers, an increase of 3.6% compare to 8.95 million at the end of 2008. Chunghwa had 1.17 million net additions to its 3G subscriber base during 2009, recording a 32.9% year-over-year growth, bringing the total to 4.73 million as of December 31, 2009.

Financially, Chunghwa reported Q4 2009 total consolidated revenue increased by 2.6% to NT$51.1 billion. Mobile communications business revenue increased by 1.6% to NT$21.9 billion. Internet business revenue increased by 9.5% to NT$6.4 billion. Net income totaled NT$10.6 billion, representing an increase of 24.6%. Basic earnings per share (EPS) increased by 24.6% to NT$1.09.

IBM to Build Cyber Security System for the U.S. FAA

The U.S. Federal Aviation Administration (FAA) has selected IBM for an R&D project aimed at protecting the nation's civilian aviation system from the ever-growing threat of cyber attacks. IBM researchers and cyber security experts will design and build a prototype security system capable of scaling to accommodate the FAA's high-speed networks.

IBM said its prototype system will go beyond traditional security approaches of encryption, firewalls, intrusion-detection devices and anti-virus software. Not only will the flexible model be designed to look retrospectively at event occurrences and system compromises, it will be able to correlate historical traffic patterns with dynamic data from monitors, sensors and other devices capturing information about network traffic and user activity in real time.

RadiSys Boosts its Convedia Software Media Server

RadiSys has enhanced its Convedia Software Media Server with the addition of co-residency capabilities, broader platform support and new media processing features. The company said the advent of multi-core CPU platforms has enabled software media to become an increasingly viable alternative for even the largest carrier-class IP media processing deployments. With the addition of co-residency, Original Equipment Manufacturers that want to offer an integrated all-in-one product or network appliance, can integrate the Convedia Software Media Server with their applications on a single compute platform.

"RadiSys strongly believes that both hardware and software media servers are equally relevant to existing and future media processing requirements for a variety of applications," said David Smith, general manager, Media Server Business Unit, RadiSys.

The Software Media Server also supports new features including G.722 HD audio codec support, text overlay for H.263 video announcements, call progress tone detection, voice quality enhancement features, speech server support, G.711 and T.38 fax, NIC bonding/VLAN tagging for resilience and traffic management -- all features that extend the Convedia Software Media Server's applicability to enterprise VoIP, IP contact center, NGN and IMS markets. RadiSys has also certified the Convedia Software Media Server on additional server platforms, including the Dell R610 rack-mount 1RU Intel multi-core server and the IBM HS-22 Compute Blade for IBM BladeCenter, while boosting the capacity of a Convedia Software Media Server deployment to thousands of ports per server.

Aruba Networks Extends Virtual Branch Office into the Cloud

Aruba Networks has extended its Virtual Branch Networking (VBN) architecture with new capabilities for moving application acceleration and content security services away from costly branch appliances and into the cloud. The company's VBN strategy, which was first rolled out in May 2009, uses low-cost wireless access point CPE to connect remote users and branch locations with enterprise applications and network policies. The low-cost devices create secure tunnels over the Internet back to an enterprise Aruba wireless LAN controller, where corporate security policies are maintained.

The new Virtual Branch Networking (VBN) 2.0 solution breaks new ground by migrating application acceleration and security filtering services into the cloud.

Aruba estimates that by eliminating branch office appliances and administration, capital expenditures can be reduced by up to 60% and operating expenses by up to 75%.

Key features of VBN 2.0 include:

  • Application Acceleration Service (AAS) -- a cloud service that can accelerate the performance of applications in the branch office by 20x, without requiring any new hardware or software in the branch. Applications benefiting from this include e-mail, Web browsing, and file sharing applications.

  • Content Delivery Network (CDN) - a subscription-based file caching service further speeds up application response times in a branch office by leveraging a cloud-based CDN to serve files locally from a nearby data center. This affordable service can be acquired on an as-needed basis and requires no additional hardware or software in the branch office;

  • Content Security Service (CSS) -- a cloud service that dramatically reduces the cost and complexity of protecting sensitive data across the distributed enterprise. CSS provides anti-virus/anti-spam protection, real-time content filtering, and data leakage prevention without the need for any new branch office hardware or software. Instantaneous and long-term historical reports can quickly identify policy violations.

Also as part of the VBN 2.0 solution, Aruba is introducing a Virtual Intranet Access (VIA) client. VIA provide road warriors and other mobile workers with Windows-based laptops, netbooks, and PCs with user-friendly, secure access to the corporate network without separate, dedicated VPN infrastructure.

Qwest Rolls out Managed Security and Mgt Service with IBM

Qwest Communications has launched two new managed services that leverage technology from IBM: Qwest iQ Managed Security Service (MSS) and Qwest iQ Network Management Service (NMS). Highlights include:

  • Qwest iQ Managed Security Service -- an outsourced service that reduces the costs and complexities associated with managing security needs, while mitigating the impact of liability and security threats from malware, SPAM e-mail, unauthorized network access, and Internet resource misuse. The service is supported by IBM Internet Security Systems (ISS), which operates world-wide redundant security operation centers with 24x7x365 support.

  • Qwest iQ Network Management Service -- a network monitoring and management product suite that provides complete out-tasking of all or part of customer's data network. The service provides around-the-clock health and fault monitoring of network devices by IBM's skilled operations analysts using automated surveillance tools. Customers can view network performance statistics, alerts and create and manage trouble tickets, all from Qwest's QControl Portal.

CIAN Selects Fujitsu FLASHWAVE 9500 Packet ONP

The Center for Integrated Access Networks (CIAN) has selected the Fujitsu FLASHWAVE 9500 Packet Optical Networking Platform (Packet ONP) for its optical communications testing facility.

CIAN, a premier engineering research center, is comprised of member universities working together to broadly enhance technology in optical communications. Their telecommunications industry research is designed to create transformative technologies for optical access networks where virtually any application requiring any resource can be seamlessly and efficiently aggregated and interfaced with existing and future core networks. The Fujitsu platform was selected to support their goal of driving toward a higher level of integration through optical aggregation.

"We chose the FLASHWAVE 9500 Packet ONP because it can aggregate, switch, and deliver Connection-oriented Ethernet (COE) services across any type of access network," said Bob Norwood, professor and CIAN industry liaison officer at the University of Arizona.

The FLASHWAVE 9500 Packet ONP supports the creation of a universal optical infrastructure where both Ethernet and SONET/SDH traffic can be aggregated and transported in its native format. Integrated COE transport technology delivers private-line quality packet aggregation and connectivity services with the proven operational robustness of optical networking, including transport-class software and database management, management interface functionality, and precision fault sectionalization. The platform's pluggable ROADM option allows efficient network scalability up to 88 wavelengths.

"Digital Due Process" Alliance Seeks Privacy Assurance for Cloud Services

Major Internet players, including, AOL, AT&T, Google, Intel, Microsoft, and others, have formed an industry initiative aimed at updating the Electronic Communications Privacy Act (ECPA) of the United States so as to assure the privacy of cloud-based services.

Specifically, the "Digital Due Process" alliance said it wants to modernize ECPA in four ways:

  • Better protect your data stored online: The government must first get a search warrant before obtaining any private communications or documents stored online;

  • Better protect your location privacy: The government must first get a search warrant before it can track the location of your cell phone or other mobile communications device;

  • Better protect against monitoring of when and with whom you communicate: The government must demonstrate to a court that the data it seeks is relevant and material to a criminal investigation before monitoring when and with whom you communicate using email, instant messaging, text messaging, the telephone, etc.; and

  • Better protect against bulk data requests: The government must demonstrate to a court that the information it seeks is needed for a criminal investigation before it can obtain data about an entire class of users.

"The traditional standard for the government to search your home or office and read your mail or seize your personal papers is a judicial warrant. The law needs to be clear that the same standard applies to email and documents stored with a service provider, while at the same time be flexible enough to meet law enforcement needs," stated Jim Dempsey, Vice President for Public Policy at the Center for Democracy and Technology.