Tuesday, October 18, 2011

Qwilt Raises $24 Million for ISP Video Cache

Qwilt, a start-up based in Redwood Shores, California, has raised $24 million in two rounds of funding for its development of video infrastructure products. The company's mission is to help Internet Service Providers to more efficiently and cost-effectively deliver high-quality video to their customers from sources like Netflix, YouTube and Amazon. The platform will identify, monitor, store and deliver Internet video. Product specifics have not yet been disclosed.

Qwilt's funding comes from Accel Partners, Redpoint Ventures, Crescent Point Group and other investors. The company, founded in 2010 by veterans of Cisco Systems and Juniper Networks.
  • Qwilt is headed by Alon Maor, who previously was at Cisco where he oversaw the development and operations of the Service Control Engine (SCE) product line. Alon joined Cisco following the $200M acquisition of P-Cube.

Tekelec Beats Expectations, New $20M Diameter Signaling Router Order

Tekelec pre-announced its Q3 results, saying that it has received a $20 million Diameter Signaling Router related order, the largest Diameter Signaling Router order in its history.

Tekelec now expects orders will be between $66 million and $68 million for the third quarter of 2011 -- ahead of market expectations. The $20 million order was received in early October. Revenues for the third quarter 2011 are expected to be between $103 million and $106 million, bringing the total revenues for the nine months ended September 30, 2011 to between $307 million and $310 million. Due to higher than expected “book-ship�? Eagle 5 revenue, the company expects non-GAAP gross margins for the third quarter 2011 to be in the 67%-68% range and GAAP gross margins for the third quarter to be in the range of 59%-60%.

Tekelec ended the third quarter of 2011 with $270 million in cash and no debt. The company generated $10 million to $13 million of cash flows from operations in the third quarter of 2011 and $58 million to $61 million of cash flows from operations as of the nine months ended September 30, 2011.

Full results are expected November 9.

Isocore Tests MPLS-TP Interoperability with Spirent

Isocore recently leveraged the MPLS-TP capabilities of Spirent TestCenter to validate interoperability across a multi-vendor network environment that included solutions from Alcatel-Lucent, Cisco, Juniper Networks and NEC. The Spirent gear enables a range of interoperability tests, including testing traffic and OAM over statically provisioned MPLS-TP connections and sending and receiving multicast traffic over next-generation multicast VPNs.

Dell Opens Silicon Valley Research and Development Center

Michael Dell formally opened Dell's newest research and development center on Great America Parkway in Santa Clara, California. Also speaking at the event were California Gov. Edmund G. Brown Jr. and City of Santa Clara Mayor Jamie Matthews.

Approximately 700 team members are expected eventually to occupy 240,000 square feet of space in two buildings. In addition to filling new positions, the Silicon Valley facility will allow Dell to consolidate much of its current Northern California operations. It will combine the operations of several area companies Dell has acquired, including Zing, Ocarina, Scalent and Everdream. Two other companies, KACE and Force10, will remain at their current Silicon Valley facilities.

Dell also operates R&D centers in Ra'anana, Israel and at the company's headquarters in Round Rock, Texas.

Private Equity Firm to Acquire Alcatel-Lucent's Genesys business for $1.5 Billion

A company owned by the Permira funds has agreed to acquire Alcatel-Lucent's Genesys business for $1.5 billion in cash.

Genesys – which reported 2010 sales of approximately US$500 million - specializes in customer service software and contact center solutions for enterprises. The contemplated deal would include the transfer of the approximately 1,800 employees worldwide, the management team and the existing business structure to ensure seamless continuity with customers and other stakeholders.

Ben Verwaayen, CEO of Alcatel-Lucent, said: “We have now positively concluded our evaluation of strategic options for both our Enterprise and Genesys businesses. Permira's intended acquisition of Genesys would enable this profitable business to flourish further; with Enterprise, we have reached the conclusion that retaining it and strengthening it further serves Alcatel-Lucent and our customers best. Our chosen direction is to leverage the natural connections that exist between enterprise and carrier customers, and proactively apply Enterprise's strengths and momentum in unified communications and data networking with them.�?http://www.alcatel-lucent.com

Riverbed Posts Q3 Revenue of $190 Million, up 28%

Riverbed reported Q3 2011 revenue of $190 million, an increase of 28% from $148 million of GAAP revenue reported in the third quarter of fiscal year 2010 (Q3'10). Non-GAAP revenue increased 29% to $191 million. GAAP net income for Q3'11 was $19 million, or $0.12 per share. This compares to GAAP net income of $14 million, or $0.09 per diluted share, in Q3'10. Non-GAAP net income for Q3'11 was $40 million, or $0.24 per diluted share, as compared to non-GAAP net income for Q3'10 of $27 million, or $0.17 per diluted share.

“We are very pleased with our third quarter financial results,�? said Jerry M. Kennelly, Riverbed president and CEO. “We were able to generate record revenue and strong sequential and year-over-year growth against the backdrop of an uncertain global economy. We achieved record non-GAAP operating margin of 30% and record non-GAAP net income of $40 million during a quarter in which we closed two acquisitions. Riverbed has evolved into a company that delivers a performance platform to dramatically improve IT. Our market position is stronger than ever and we are excited about the opportunity before us.�?http://www.riverbed.com

European Commission Plans EUR 9.2 Billion Broadband Investment

The European Commission announced plans to invest almost EUR 9.2 billion from 2014 to 2020 on broadband networking projects and digital services.

The public funding, which would include equity, debt instruments and grants, aims to spur additional private investments in existing networks. The Digital Agenda for Europe set targets for 2020 of broadband access for all at speeds of at least 30 Mbps, with at least 50% of households subscribing to speeds above 100Mbps. The European Commission estimates that the overall investment needed to meet this target at EUR 270 billion.

In terms of new broadband infrastructure, the EC expects project proposals from established telecoms operators as well as new players such as water, sewage, electricity utilities, cooperative investment projects or construction firms. Public-private partnerships might also get funding.

In digital services, the EC is likely to fund projects involving eGovernment, e-Health, electronic IDs, cybersecurity and SmartGrid energy management.

Ozmo Devices Cites Traction for Low-power Wi-Fi

Ozmo Devices announced a milestone for its low-power Wi-Fi Personal Area Network (Wi-Fi PAN) silicon -- the shipment of its 1 millionth OZMO2000 chip, which started shipping earlier this year.

"Ozmo is addressing a very large market opportunity currently served by Bluetooth and proprietary 2.4GHz technologies," said Bill McLean, Chief Executive Officer, Ozmo Devices. "Shipping one million units so soon after introducing the OZMO2000 demonstrates rapid market adoption and is a strong validation of Ozmo's compelling value proposition. We are determined to further expand our market leadership in the low-power Wi-Fi market."

Ozmo said its Wi-Fi chip is designed o overcome the battery life, cost and compatibility issues that have limited the broad adoption of Wi-Fi for HID (human interface device) applications. Furthermore, the OZMO2000 has demonstrated its applicability for wireless audio when Intel selected it to power the Intel® Wireless Music adaptor for Intel® WiDi-enabled laptops. It is compatible with Windows 7 SoftAP as well as Intel's My Wi-Fi Technology. Furthermore, the OZMO2000 is designed to be compatible with the Wi-Fi Direct standard from the Wi-Fi Alliance.


Broadcom Combines Baseband Modem+ Net Processor for 4G Microwave Backhaul

Broadcom introduced a system-on-a-chip to address the need for higher bandwidth in 4G mobile backhaul. The new BCM85620 chip is the first SoC to combine a baseband modem and network processor. Targeted platforms are gigabit-class microwave backhaul systems.

The device, which integrates the technology of recently acquired Provigent, combines the functionality of up to ten off-the-shelf application-specific standard parts (ASSPs) into one SoC. It provides radio-optimized traffic delivery, including robust clock delivery over packet transport needed for network synchronization.

A throughput of 1.25Gbps is achieved using advanced modulation (1024 QAM and 512QAM) and channel widths of up to 112MHz. Broadcom said it has also made strides in with enhanced EPN tolerance and forward error correction (FEC). Both SyncE and 1588 timing are supported. The integrated network processor supports higher layer traffic management. http://www.broadcom.com

  • In April, Broadcom completed its previously announced acquisition of Provigent, a supplier of mixed signal semiconductors for microwave backhaul systems. Broadcom paid approximately $313 million, net of cash assumed, to acquire all of the outstanding shares of capital stock and other rights of Provigent. Provigent's System-on-Chip (SoC) solutions address the backhaul bottleneck, including high capacity modem, baseband, networking and RF chain components. The company is based in Israel and it has offices in Santa Clara, California.

ADVA Report Q3 Revenue of EUR 79.3 million

ADVA Optical Networking reported Q3 20111 revenues of EUR 79.3 million, slightly above guidance of between EUR 73 million and EUR 78 million. This compares to EUR 80.5 million in Q3 2010 and is up 1.9% vs. Q2 2011 at EUR 77.8 million. IFRS pro forma operating income, excluding stock-based compensation and amortization & impairment of goodwill & acquisition-related intangible assets, amounted to EUR 5.5 million or 6.9% of revenues, also above guidance of between 2% and 5% of revenues.

“We are extremely pleased with our Q3 2011 revenues of EUR 79.3 million, which slightly exceed guidance and are up 1.9% vs. the previous quarter. For the most part, this development is driven by increased Ethernet access business, largely due to initial significant carrier investments for mobile backhaul solutions. Our pro forma gross margin increased from 43.0% in Q2 2011 and 40.0% in Q3 2010 to 43.5% in Q3 2011," stated Jaswir Singh, chief financial officer & chief operating officer of ADVA Optical Networking. http://www.advaoptical.com