Monday, April 25, 2011

Tellabs Posts Q1 Revenue of $322 million, Down 15% YoY on North American Sales

Tellabs reported Q1 2011 revenue of $322 million, down 15% from $379 million in the first quarter of 2010.
Tellabs recorded a net loss (GAAP) of $24 million or 7 cents per share in the first quarter of
2011, compared with net earnings of $46 million or 12 cents per share in the first quarter of 2010.

For the first quarter of 2011, Broadband segment revenue was $173 million, Transport segment revenue
was $99 million and Services segment revenue was $50 million.

"While international revenue grew 40% from a year ago, lower revenue in North America drove Tellabs'
first-quarter results," said Rob Pullen, Tellabs president and chief executive officer. "Going forward, we
will continue to invest in the smart mobile Internet through increased R&D spending to position Tellabs
for long-term growth."

Altera Posts Q1 Sales of $535.8 million, up 33% YoY

Altera reported Q1 sales of $535.8 million, down 4 percent from the fourth quarter of 2010 and up 33 percent from the first quarter of 2010. New product sales increased 13 percent sequentially. First quarter net income was $224.1 million, $0.68 per diluted share, compared with net income of $231.6 million, $0.72 per diluted share, in the fourth quarter of 2010 and $153.2 million, $0.50 per diluted share, in the first quarter of 2010.

"Despite the anticipated slow down in first quarter sales following a remarkable 2010 growth year, we experienced double-digit sequential growth in our 40-nm based devices, as these products are now entering the best part of their growth phase," said John Daane, president, chief executive officer, and chairman of the board. "Our initial 28-nm Stratix V devices, the first high-end FPGAs at this advanced node, are now shipping--giving us additional capabilities to accelerate the displacement of ASICs and ASSPs."

Deutsche Telekom and NSN Show 800 MHz LTE for Rural Reach

Deutsche Telekom and Nokia Siemens Networks have jointly demonstrated LTE in in the 800 MHz spectrum as a means of reaching rural schools in Germany. DT has established an LTE connection with the G.-E.-Lessing-Gymnasium "European Grammar School" in Doebeln village. The "Flying Classroom" enables students to engage remotely with peers and teachers in partner schools using video conferencing and Smartboards.

"LTE offers a wide range of possible uses via ultra high-speed broadband and this Flying Classroom shows the wonders of LTE technology in enabling a new level of e-Education," said Guido Menzel, senior vice president, Fixed Mobile Engineering at Telekom Deutschland GmbH.

In 2010, Nokia Siemens Networks supplied LTE hardware and software with extensive services to the operator to ensure rapid, high-quality rollout of its LTE network in Germany.

Broadcom Hits Q1 Revenue of $1.82 Billion, up 24%

Broadcom reported Q1 net revenue of $1.82 billion, a decrease in net revenue of 6.6% compared with Q4 2010 and an increase of 24.2% compared with the $1.46 billion reported for Q1 2010. Net income (GAAP) was $228 million, or $.40 per share (diluted).

"Broadcom reported solid results for the first quarter, with revenue above the mid-point of guidance and better-than-expected profitability," said Scott A. McGregor, Broadcom's President and Chief Executive Officer. "In addition, momentum continues to build around our innovative solutions. Following a record year in 2010, we had record design wins in the first quarter, which speaks to the continued underlying strength of our integrated solutions for the Home, Hand and Infrastructure markets."

Equinix Acquires ALOG Data Centers of Brazil

Equinix has acquired ALOG Data Centers of Brazil S.A. in an all cash transaction valued at approximately $83 million—approximately $68 million as part of the acquisition and approximately $15 million to provide additional capital to fund future data center expansions.

ALOG serves approximately 1,000 customers across its two data centers in Sao Paulo and Rio de Janeiro. In June 2011, ALOG plans to open the first phase of its third data center, which will be located in Tamboré (a suburb of Sao Paulo). The Tamboré data center will provide approximately 400 cabinet equivalents, with the ability to expand to as much as another 1,200 cabinet equivalents.

Equinix now has a footprint of 95 data centers across 37 global markets. This is the company's first entrance into the South American market.

The deal was completed with financial backing from Riverwood Capital. Equinix will hold the controlling interest and sit on the board of directors for ALOG; Riverwood will hold a significant minority stake; and current members of ALOG's management team will hold approximately 10 percent ownership of the company, with Sidney Breyer remaining as CEO. Beginning three years following the close of the transaction, Equinix has the right, and in certain circumstances may be required, to acquire 100 percent of ALOG.

Force10 Outlines its Open Cloud Framework

Force10 Networks introduced its Open Cloud Networking (OCN) vision for cloud and conventional data centers built on open architectures, open automation, and open ecosystems.

Force10's OCN framework represents a new way to build, scale and manage data centers powered by a new family of centralized and distributed core switches, a top of rack (ToR) open cloud switch and automation software. The solutions address cloud, conventional, virtualized, and non-virtualized data centers.

Three key elements of the OCN architecture include:

Open Architecture – OCN enables standards-based open architectures that are interoperable with competitors offering customers a choice in how they build their core and top-of-rack elements in the data center. New building blocks for these open architectures include:

  • The new Z9000 distributed core switch, which enables highly scalable, leaf-and-spine data center architectures, is one of the smallest and least expensive core switches ever offered. Designed in a 2RU form factor, it delivers 128 10 GbE ports for 2.5 Tbps of switching capacity in 1/10 the space and with 1/20 the power consumption at 1/5 the price of competing products. The Z9000 switch will list for $175,000 and will be available for customer shipments in July 2011.

  • The new Z9512 is a centralized, chassis-based switch that delivers 9.6 Tbps of switching capacity in half a rack. For more conventional data center cores, Force10's new Z9512 is a chassis-based switch that offers 480 line-rate, non-blocking 10GbE ports, 96 line-rate, non-blocking 40 GbE ports, and 48 line-rate, non-blocking 100 GbE ports in a 19RU form factor. At 9.6 Tbps switching capacity and an initial 400 Gbps per-slot switching capacity (four times the slot capacity of other switches), sub-5 microsecond latency and an 8-Gigabyte packet buffer for each of its 12 line cards, the Z9512 delivers industry-leading performance in a centralized core switch. It could be used for centralized data center cores, aggregation of flat Layer 2 topologies, or aggregation of hierarchical Layer 3 topologies as well as for multi-service deployments incorporating Gigabit Ethernet, 10 GbE, 40 GbE, and 100 GbE. The Z9512 switch will be available in the second half of 2011 and pricing will be configuration dependent.

  • The S7000 Open Cloud Switch is a next-generation ToR device that incorporates 3-in-1 ToR convergence of switching, storage, and application processing capabilities. The switch has the ability to run third-party applications directly. It supports both Ethernet and storage traffic. It supports Data Center Bridging (DCB) and Fibre Channel over Ethernet (FCoE). The S7000 can be configured as an FCoE transit switch or FCOE gateway. The S7000 Open Cloud Switch will be available in the second half of 2011.

  • New FTOS advanced software features including TRILL (Transparent Interconnection of Lots of Links), DCB (Data Center Bridging), EVB (Ethernet Virtual Bridging), and VEPA (Virtual Ethernet Port Aggregation).

Open Automation 2.0In Q3, Force10 plans to open the "ScriptStore", an online resource and forums that will allow users to purchase automation scripts and share techniques for automating Force10 products. In addition, Force10 has enhanced the Open Automation Framework with port profile support, EVB/VEPA, and HyperLinks.

Open Ecosystems – partners in the compute, storage, applications and orchestration domains to ensure standards-based interoperability for its OCN solutions.

"Automation at the network level helps customers reduce costs and manual errors in the data center," said Arpit Joshipura, chief marketing officer at Force10. "Open Automation 2.0 and the DevExchange demonstrates Force10's ongoing commitment to enabling higher levels of automation in network management for our customers."

SoftLayers Opens Silicon Valley Data Center

SoftLayer Technologies opened a new data center in San Jose, California. The new facility has capacity for more than 12,000 servers in three data center pods. SoftLayer is featuring a dual-path network structure, including redundant network interface cards (NICs) in every server, enabling customers to select up to 2G of connectivity for any SJC01 server. The facility is SoftLayer's first data center in California. It is fully connected to SoftLayer's data centers located in Dallas, Houston, Seattle, and the Washington D.C. area, and to the company's network Points of Presence in seven additional U.S. cities.

Hackers Penetrate Sony's PlayStation Network

Hackers have penetrated Sony's PlayStation Network and potentially access to personal information and credit card data of tens of millions of accounts. Sony's PlayStation Network enables users of the PlayStation 3 console to join online games, download content and watch streaming movies from Netflix.

In a blog posting, Sony said the intrusion occurred between April 19 and April 19. Data compromised includes: name, address, country, email, birthdate, login, password and online profile/ID. It is also possible that the intruder(s) stole the users' credit card number, expiration date, purchase history, billing address and answers to security challenge questions.

Sony has temporarily turned off its PlayStation Network and Qtriocity services. It has also hired an outside security firm to conduct a forensic analysis of the attack.

CableLabs Tests DOCSIS Provisioning of EPON

Earlier this month, CableLabs hosted the second DOCSIS Provisioning of EPON (DPoE) interoperability testing event, focusing on on the DPoE v1.0 specifications. In addition to providing provisioning requirements for Ethernet Passive Optical Network (EPON) equipment, version 1.0 of the DPoE specifications defines requirements and functionality to support Metro Ethernet services such as Ethernet Private Line (EPL).

The second DPoE interop event attracted five new suppliers while overall participation increased thirty percent. Suppliers participating in the event included Adva, Arris, Atheros, Broadcom, Ciena, CommScope, CTDI, Finisar, Huawei, MRV, Sumitomo, Telco Systems, and ZTE.

"Significant progress has been made since the first interop event. This interop featured several combinations of equipment from multiple suppliers to create a DPoE Network that supports Metro Ethernet services. For these network services, all devices were provisioned using the same back-office systems normally used to provision DOCSIS equipment," said Curtis Knittle, Director of Digital Video Services at CableLabs. The next interoperability event for DPoE products is scheduled to begin on August 22, 2011.