Tuesday, May 4, 2010

JDSU Posts Revenue of $332 Million

JDSU reported quarterly revenue of $332.3 million and a net loss of $(11.9) million, or $(0.05) per share. This compares to net revenue of $342.9 million and a net loss of $(19.5) million or $(0.09) per share for the prior quarter, and net revenue of $279.1 million and a net loss of $(101.7) million or $(0.47) per share for the same period last year.

"We began the calendar year with the highest quarterly bookings JDSU has reported in the last two years, with each of our businesses achieving a book to bill of greater than one in the quarter," said Tom Waechter, JDSU's President and Chief Executive Officer. "The combination of the recovery in our markets, and our innovation and new product offerings are driving the strength of our customer demand."http://www.jdsu.com

ADVA Optical Clocks 80% Lower Latency than WDM

ADVA Optical Networking confirmed that its low-latency optical transport solutions offer 80% lower latency than traditional WDM options. The ADVA FSP 3000 incorporates latency-optimized optical terminals, dispersion compensation, transponders and amplifiers. The platform enables enterprises to expand their network to up to 120 wavelengths while offering protocol flexibility, including InfiniBand and multiple Fibre Channel speeds.

Lower latency can be a strategic advantage for financial institutions. ADVA said the combination of the right dark fiber provider, co-location and carrier partnerships, coupled with the fastest transmission equipment can help financial institutions respond faster to market changes than their competition. ADVA has more than 15 years of experience delivering ultra low-latency optical transport solutions for the financial industry.

"Most carrier-only platforms are built around standards-compliant technologies such as Forward Error Correction (FEC), which introduce latency. The FSP 3000, on the other hand, has been designed to meet the most demanding enterprise requirements in regards to latency and transport efficiency. Every component from transmitter to receiver has been optimized for speed. Transmission link design including optical amplification and dispersion compensation has been optimized, and everything that could potentially cause latency has been eliminated," said Christoph Glingener, chief technology officer of ADVA Optical Networking.

Netronome Secures $23 Million for Network Flow Processing

Netronome has closed a $23 million Series D round of funding for its network flow processors.

Netronome supplies Network Flow Processors that are designed for tight coupling with embedded multicore Intel and x86 processors. This accelerates network, security and content processing platforms used in 40 Gbps and 100 Gbps networks. It is the only line of processors backward compatible with the market‐leading Intel IXP28XX.

Netronome recently announced it began shipping its new flagship product, the NFP-3240, to customers in late 2009. Customer design wins include shared service blades in switches and routers, 3G and LTE wireless infrastructure, security appliances and virtualized servers. The products resulting from these top-tier network equipment OEM partnerships will reach production in the second half of 2010.

The company said it has seen a five-fold increase in annual revenue and five consecutive quarters with record sales.

The oversubscribed round was led by new investor DFJ Esprit, and included previous investors Raptor Group, Tudor Ventures and Top Technology. The round also included investment from industry luminaries - FORE Systems founders Robert Sansom and Eric Cooper, and Analysys founder David Cleevely.

"Many customers share our vision for intelligent and secure networking platforms based on x86 processors. More importantly they recognize that network flow processors are the key component in scaling these designs," said Niel Viljoen, founder and CEO of Netronome. "This funding will allow us to successfully manage our growth by providing the additional sales support, design assistance and manufacturing supply required by our increasing number of design wins."http://www.netronome.com

Octasic Delivers High-Density Video Transcoding Cards

Octasic introduced its TXP1000 high-density video transcoding cards, which are PCI Express (PCIe) cards for high channel density video transcoding systems.

The TXP1000 cards are built using Octasic's award-winning Vocallo MGW chip. The media processing software stack provides: H.264, MPEG-4 and H.263 CODEC support from QCIF to HD resolution; dynamic bit-rate and quality adaptation; frame rate and resolution scaling; advanced packet loss concealment; a flexible video mixing engine for conferencing, graphics overlay and stream insertion for video monetization.

"Growth in mobile video services like video telephony, video streaming, Interactive Voice and Video Response (IVVR), multimedia messaging, TV anywhere, and mobile conferencing is forcing telecoms, OEMs and Internet equipment providers to rethink their usual approach to media processing," said John Fry, director of business development at Octasic. "Compared to standard x86 server-based solutions that suffer from serious power, cost and scalability limitations, Octasic's TXP1000-based systems provide tangible benefits that can cut video transcoding systems capital costs in half, reduce the power consumption by a factor of 8 and still deliver 5 times more channels per unit of rack space. Octasic is unique in that it has the right combination of low power DSP technology, video expertise and communications technology heritage to successfully meet the demands of this growing market."http://www.octasic.com

Clearwire Confirms Further 4G Markets for 2010

Clearwire confirmed plans to launch 4G mobile broadband service in 19 additional cities this summer, including previously announced markets Kansas City, KS; St. Louis, MO; Salt Lake City, UT, and the core area of Washington, D.C. and newly announced markets Nashville, TN; Daytona, Orlando and Tampa, FL; Rochester and Syracuse, NY; Merced, Modesto, Stockton, and Visalia, CA; Wilmington, DE; Grand Rapids, MI; Eugene, OR; and Yakima and Tri-Cities, WA.

In addition, Clearwire reiterated its plans to launch in other major markets across the country by the end of 2010, including New York City, Los Angeles, Boston, Denver, Minneapolis, the San Francisco Bay Area, Miami, Cincinnati, Cleveland and Pittsburgh.

Sprint and Time Warner Cable will launch services in these markets too under their own brands.

The Company also expects to launch two WiMAX smartphones by the end of 2010. From Samsung, an Android-based 3G/4G/WiFi device optimized for heavy video and video communications use, and a 3G/4G/WiFi enabled phone from HTC.

Vodafone Hutchison Australia Outsources it Network to NSN

Vodafone Hutchison Australia (VHA) will outsource its overall network operations and a key part of its equipment supply to Nokia Siemens Networks. The seven-year agreement aims to improve services for its 7 million customers and deliver operational efficiencies. The contract includes service management for a number of key parts of VHA's mobile network (core, transmission, and radio networks) and equipment supply for its core network. Financial terms were not disclosed.

Under the contract, Nokia Siemens Networks will combine two existing operations organisations and consolidate two core networks. The end-to-end approach to VHA's business includes domains such as valued added services, business support systems, and network operations. Nokia Siemens Networks will manage a number of VHA's third-party providers. NSN will also provide its Flexi Network Gateway (Flexi NG) packet core platform and expand the mobile softswitch (MSS) and home location register (HLR) -- enabling VHA to evolve towards a single database for all its subscriber information.

Vodafone Hutchison Australia (VHA) is a 50/50 joint venture between Vodafone Australia and Hutchison 3G Australia. VHA markets its products and services under the Vodafone and 3 brands in Australia. VHA has 6.895 million active customers at 31 December 2009.

Clearwire Sees Growing Demand for its WiMAX

Clearwire ended Q1 with 971,000 total subscribers consisting of 814,000 retail subscribers and 157,000 wholesale subscribers. The company added 283,000 net new subscribers in Q1 including 172,000 retail additions and 111,000 wholesale additions. Greater than one-third of wholesale subscribers consist of subscribers on dual mode devices that reside outside of Clearwire's currently launched markets.

"Customer demand for 4G services is truly making 2010 the year of mobile broadband, as always-on true mobile broadband keeps people connected to the information, services and applications that matter most," said Bill Morrow, CEO of Clearwire. "With record breaking subscriber growth, a robust wholesale "network of networks" approach to 4G, and customer usage that far surpasses anything seen on 3G networks today, Clearwire is standing at the forefront of the next evolution in telecommunications and technology."

Revenue for Q1 2010 was $106.7 million, a 72% increase over first quarter 2009 revenue of $62.1 million and a 33% increase over fourth quarter 2009 revenue of $79.9 million. Retail ARPU was $42.77 in the first quarter 2010. Retail ARPU in the first quarter includes the positive impact of $1.22 related to a prior period adjustment to account for incentive discounts over the lives of customer contracts. Without this adjustment first quarter ARPU was $41.55.

Retail cost per gross subscriber addition (CPGA) improved to $439 in the first quarter 2010, down from $624 in the fourth quarter 2009. The decline in CPGA is largely a function of greater gross additions, better overall marketing efficiencies and fewer market launches.

Retail monthly churn also improved to 3.0% in the first quarter 2010 compared to 3.6% in fourth quarter 2009. During the first quarter, the Company completed the conversion of the Hawaii, Seattle and Carolina markets to its 4G network, and the subscriber churn rate in the non-conversion markets was 2.7%.

2010 Business Outlook

Clearwire continues to expect to cover up to 120 million people with its 4G network by the end of 2010. Within this footprint, services will be offered under both the CLEAR(R) brand name, and those of the Company's strategic wholesale providers which will vary across individual markets.

Clearwire also continues to expect that total subscriber levels will triple in 2010 from the end of 2009 levels and that it will end 2010 with more than 2 million total subscribers. The company expects average 2010 retail CPGA to be in the mid $500's and consistent with the average CPGA for 2009, while average retail ARPU is now expected to remain above $41.00 for 2010.

AT&T Puts U-verse Content Online for PC Streaming

AT&T introduced U-verse Online, a streaming site that is part of its strategy to U-verse content available to consumers across multiple screens, including the TV, PC and mobile devices. The newly rebranded AT&T Entertainment website lets you watch streaming TV shows, movies and video clips on your PC.

In March, AT&T previewed plans to offer U-verse Mobile, a mobile app that will allow U-verse TV customers to download and watch select shows on their Wi-Fi enabled mobile phones later this year.

Later this year, AT&T plans to offer U-verse TV customers the ability to log in to U-verse Online for access to even more TV content choices and features at no extra charge.

Palo Alto Networks Firewall Blocks Facebook Social Plug-ins

Palo Alto Networks has upgraded its firewall with new functionality that enables enterprises to control Facebook Social Plug-ins.

The company said Facebook users in enterprises are susceptible to having their confidential data shared with third parties because of changes at Facebook that can cause behavioral data from its users to be made available to others unless a user explicitly opts out. The new default Facebook privacy settings are designed to share private and corporate information with advertisers and other third parties. In enterprises, this policy has major implications, as there is no central way for IT security teams to protect their users from the unknown and - in almost all cases - unwanted privacy impact, which involves the sharing of behavioral and website information with Facebook and its advertising customers.

Palo Alto Networks' new App-ID allows IT security teams to protect their Facebook users against the undesired data sharing while transparently preserving Facebook functionality and not breaking the functionality of other websites that rely on the Facebook Social Plug-ins. Palo Alto Networks combines three identification technologies to provide visibility and control over Facebook-related functionality, users and content:

  • App-ID identifies exactly which Facebook functionality is running on the network, as well as the associated risks, so administrators can deploy comprehensive application usage control policies for inbound and outbound traffic.

  • User-ID integrates with Microsoft Active Directory and LDAP directories to link Facebook use to users and groups - not just IP addresses - for visibility, policy creation, logging and reporting.

  • Content-ID combines a real-time threat prevention engine with a comprehensive URL database to detect and block a wide range of threats, limit unauthorized transfer of files and data, enabling customers to scan permitted Facebook traffic for threats and confidential data.

Aviat Networks Posts Revenue of $120 Million

Aviat Networks reported quarterly revenue of $120.0 million, compared with $158.0 million in the year ago period. The net loss under U.S. GAAP was $25.7 million or $0.43 per share, compared with U.S. GAAP net loss of $39.4 million or $0.67 per share in the year ago quarter.

As of the quarter ended April 2, 2010 cash and cash equivalents were $140.5 million, compared with $126.4 million as of the quarter ended January 1, 2010.

Revenue in the North America segment was $39.6 million in the third quarter of fiscal 2010, compared with $43.0 million in the year ago period. International revenue was $80.4 million, compared with $115.0 million in the year ago period. Beginning in Q1 of fiscal 2010, Network Operations revenue is now reported within the North America and International segments.

"We are seeing stabilizing trends in various regions with new customer revenue coming on-stream in Asia Pacific and some improvement in Africa. While we are maintaining our share position with our top customers, their spending levels continue to reflect the caution we have seen in recent quarters. Overall gains this quarter were offset by the delay in capital spending in Europe and seasonal weakness as well as push-outs in North America," said Harald Braun, president and chief executive officer of Aviat Networks.

Ericsson Outlines Strategy for a Changing Market

Ericsson predicts that the number of mobile broadband users will increase from today's 400 million to 3.5 billion in 2015, while the total number of Internet-connected devices will soar to 50 billion by 2020. By this point, the number of network equipment vendors is forecast to very much reduced -- those that remain will generate more revenue from services and software and less from hardware.

In its Capital Markets Day presentation to investors and journalists in Stockholm, company executives outlined their strategy to transform the company to address these opportunities.

"We see good long-term growth opportunities in our traditional segments and we are determined to further strengthen our position and continue to grow faster than the market. Less than 5% of the world's population has access to 21 Mbit/s or more in the air, at least 1.5 million installed GSM radio base stations must be replaced and in addition we see continued need for services in fields such as consulting, system integration and managed services. We estimate that our addressable market, including joint ventures, is worth USD 350 billion," stated Hans Vestberg, who took over as the company's CEO at the beginning of this year.

Some highlights from the presentations:

  • Vestberg said the company is focused on maintaining and improving its strong margins, and then on organic growth. There are no merger/acquisition plans on the radar. The company will continue to reduce its cost base.

  • ST-Ericsson said its restructuring plans are on course. Its mission is to enable the larger corporate vision of 50 billion interconnected devices by supplying complete silicon/software for consumer devices. ST-Ericsson's
    new multi-mode modem architecture will provide software-defined radio access for LTE at up to 100Mbps and HSPA+ at 42 Mbps.

  • Sony Ericsson returned to profitability in Q1 2010, while shipping only 10.5 million units -- down from 14.5 million a year earlier. Gross margins rose to 31% from 8% a year earlier. The restructuring is now 80% complete and the company's workforce has been reduced by 3,150 employees.

  • In mobile networks, data and speed have already surpassed voice as an investment driver.

  • Ericsson's data based on global network measurements indicates that mobile data traffic will continue to grow at 100% annual rates through 2015.

  • Mobile voice and SMS traffic continues to grow as well, although revenue for these services will be flat.

  • Mainland China added more than 100 million subscriptions last year. Ericsson expects similar numbers in 2010.

  • Non-voice revenues now make up 30% of Chinese operators' total revenues.