Tuesday, April 24, 2012

Infinera Posts Q1 Revenue of $105 Million

Infinera reported Q1 2012 revenue of $104.7 million compared to $112.0 million in the fourth quarter of 2011 and $92.9 million in the first quarter of 2011. GAAP net loss for the quarter was $(20.6) million, or $(0.19) per share, compared to net loss of $(19.4) million, or $(0.18) per share, in the fourth quarter of 2011 and net loss of $(16.4) million, or $(0.16) per share, in the first quarter of 2011.

"Activity in our first quarter reflected demand from our customers for both our existing and next generation platforms,�? said Tom Fallon, president and chief executive officer. “Our new 500G PIC-based DTN-X platform, with super-channels and integrated OTN switching, is generating strong interest among potential and existing customers who now have a choice between our DTN and DTN-X. As planned, we are on track to ship the new platform by the end of the June quarter and to begin revenue recognition in the second half of this calendar year. "

NETGEAR Continues to Grow at 17% YoY Pace

NETGEAR reported Q1 2012 revenue of $325.6 million, as compared to $278.8 million in the comparable prior year quarter, 16.8% year-over-year growth. Non-GAAP net income was $28.1 million, as compared to $24.2 million in the comparable prior year quarter, 16.1% year-over-year growth.

Patrick Lo, Chairman and Chief Executive Officer of NETGEAR commented, "The first quarter of 2012 represents another record breaking period for our net revenue and non-GAAP operating income. We continued to gain share in all markets due to the strength of our products and our ability to supply upside demand from our service provider customers. Year-on-year growth in the Americas provides another example of our exceptional operational execution and our ability to meet a surge in demand from our service provider customers, both on Docsis 3.0 and DSL gateways. The tremendous year-on-year growth we experienced in the APAC region was driven by market share gains across all three major markets: China, Australia, and Japan."http://www.netgear.com

Akamai's Revenue up 16% YoY, Net Income Down 15%

Akamai reported revenue for the first quarter of 2012 of $319 million, a 16 percent increase over first quarter 2011 revenue of $276 million. Net income (GAAP) was $43 million, or $0.24 per diluted share, a 15 percent decrease from first quarter 2011 GAAP net income of $51 million, or $0.26 per diluted share, and a 28 percent decrease from fourth quarter 2011 GAAP net income of $60 million, or $0.33 per diluted share.

Facebook Teams with Antivirus Providers

Facebook is establishing a Antivirus Marketplace with leading cyber safety companies.

Microsoft, McAfee, TrendMicro, Sophos and Symantec will augment Facebook's URL blacklist system with their own URL blacklist databases. The AV Marketplace will also let people download six-month licenses to full versions of anti-virus software at no charge.

ZTE Reports Revenue of US$2.9 Billion, up 29% YoY

ZTE reported operating revenue of US$2.96 billion forQ1 2012, an increase of 29.46% over the same period last year. Net profit attributable to shareholders was US$22.99 million, an increase of 23.85% over the same period last year. Basic earnings per share were US$0.00635.

ZTE noted that sales to carrier customers rose by 13.65% compared to the same period the previous year, a reflection of an increase in revenue generated from sales of optical and data communications products. Terminal product revenues were up 27.33% compared to the same period last year, driven primarily by sales of 3G handsets.

Sprint's Network Vision Advances, But Q1 Financial Loss Widens

Sprint reported Q1 wireless service revenues of $7.2 billion, an increase of more than 7 percent year-over-year, driven primarily by Sprint platform postpaid ARPU growth of $4.03. net loss of $863 million and a diluted net loss of $.29 per share for the first quarter of 2012. This compares to a net loss of $439 million and a diluted net loss of $.15 per share in the first quarter of 2011 and includes depreciation of approximately $543 million, or negative $.18 cents per share, primarily due to accelerated depreciation related to the expected shut down of the Nextel platform as well as a one time gain of $170 million from the terminated contract with LightSquared.

Sprint posted a net gain of nearly 1.1 million subscribers during the first quarter, bringing total ending subscribers to a record 56 million.

There were 1.5 million iPhone activations in Q1, of which 44 percent were new customers.

The total number of customers on the Sprint platform grew almost 4 percent sequentially including 263,000 postpaid net subscriber additions, 870,000 prepaid net subscriber additions and 785,000 wholesale and affiliate net subscriber additions.

Approximately 46 percent of total subscribers that left the postpaid Nextel platform during the period were retained on the Sprint postpaid platform as compared to 27 percent in the first quarter of 2011 and 39 percent in the fourth quarter of 2011.

The company provided the following updated on Network Vision:

  • Approximately 600 Network Vision sites are now on air. These are meeting speed and coverage enhancement targets.
  • Zoning requirements are completed for approximately 9,700 sites and leasing agreements have been completed for close to 7,700 sites.
  • More than 3,200 sites are in notice to proceed status and work has started on approximately 3,000.
  • Sprint expects to bring approximately 12,000 sites on air by the end of 2012 and to complete the majority of its Network Vision roll-out in 2013.
  • Approximately 1,300 iDEN sites have been taken off air to date. Sprint expects to shut down a total of 9,600 before the end of the third quarter.
  • Sprint expects to launch 4G LTE in six major cities by mid-year 2012 including Houston, Dallas, San Antonio, Atlanta, Kansas City and Baltimore.
  • CAPEX was $800 million in Q1, compared to $555 million in the first quarter of 2011 and $900 million in the fourth quarter of 2011. Wireless capital expenditures were $710 million in the first quarter of 2012, compared to $449 million in the first quarter of 2011 and $774 million in the fourth quarter of 2011.

FCC's Connect America Fund Gets Underway

The FCC adopted an official reform order for establishing the Connect America Fund, which replaces the outdated universal service and intercarrier compensations systems.

The Connect America Fund has the following mission: (1) preserve and advance universal availability of voice
service; (2) ensure universal availability of modern networks capable of providing voice and
broadband service to homes, businesses, and community anchor institutions; (3) ensure universal
availability of modern networks capable of providing advanced mobile voice and broadband
service; (4) ensure that rates for broadband services and rates for voice services are reasonably
comparable in all regions of the nation; and (5) minimize the universal service contribution
burden on consumers and businesses.

CAF will eventually replace all of the existing high-cost support mechanisms. The annual funding target is set at no more than $4.5 billion over the next six years. The goal is to help make broadband available
to homes, businesses, and community anchor institutions in areas that do not, or would not
otherwise, have broadband, including mobile voice and broadband networks in areas that do not,
or would not otherwise, have mobile service, and broadband in the most remote areas of the

The CAF plans to adopt incentive-based, market-driven policies, including competitive bidding, to distribute
universal service funds more efficiently than previously.

Broadcom Intros Four Energy Efficient Ethernet (EEE) PHYs

Broadcom has added four energy efficient chips to its Energy Efficient Ethernet (EEE) portfolio.

The new 10/100/1000BASE-T physical layer transceivers (PHYs) lower operating power by more than 40 percent, and up to 70 percent or more through the implementation of EEE directly at the physical layer. The PHYs also feature Broadcom's AutoGrEEEn technology, which enables systems with legacy MACs to leverage the power savings of EEE in periods of low link utilization. This allows customers to transform existing network equipment to EEE-compliance simply by changing the PHY device.

In addition to reducing power consumption and energy costs, Broadcom said its new PHYs provide integrated on chip 1588 PTP and Y.1731 delay measurement for timing synchronization and latency measurement — critical features for service provider and industrial Ethernet applications.

All devices are now sampling with production volume slated for the second half of 2012. http://www.broadcom.com

IBM to Acquire Vivisimo for Big Data Analytics

IBM agreed to acquire Vivisimo, a privately-held developer of discovery and analysis software for big data. Financial terms were not disclosed.

Vivisimo offers federated data capabilities that can provide a single point of access to disparate data sources. The company claims 140 customers in government, life sciences, manufacturing, electronics, consumer goods and financial services. Founded in 2000, Vivisimo is headquartered in Pittsburgh, Pennsylvania with offices in Virginia, the UK and France and has 120 employees worldwide.

IBM said the acquisition accelerates its IBM’s efforts to help clients integrate, navigate, and analyze big data.

IBM is also announcing that it is expanding its big data platform to support multiple Apache Hadoop distributions in addition to its own, beginning with Cloudera.http://

Ericsson Sees LTE Strength in North America While Europe Waits

Ericsson reported Q1 2012 revenue of SEK 51.0 billion (US$7.59 billion), down 4% YoY, impacted by an expected major decline in CDMA sales as well as lower operator network spending in regions with macro-economic or political uncertainty. Net income was SEK 8.8 billion (US$1.31 billion). Global Services and consolidation of Telcordia contributed positively.

"Sales of high-performance mobile broadband developed well in North America, Japan and Korea, while other regions such as Europe including Russia, parts of Middle East and India were weaker,�? says Hans Vestberg, President and CEO of Ericsson. “CDMA continued its expected decline in the transition to LTE. Our services business showed continued momentum where especially Professional Services developed favorably. Support Solutions (former Multimedia) increased organic sales.

Some highlights:

Telcordia’s sales were SEK 0.9 b. in the quarter.

Networks declined compared to Q111, impacted by continued business trends from H211 as well as a major decrease in CDMA sales.

Sales in CDMA decreased 40% YoY.

In North America, strong HSPA capacity sales and a continued build-out of 4G/LTE coverage more than offset the major decline in CDMA sales.

Ericsson recently signed its 50th contract for Evolved Packet Core.

The Antenna Integrated radio, which is part of the RBS6000 family, is now ready for volume deployment.

The new SSR 8020 IP router is now in commercial operation.

Global Services continued to show good momentum with a growth of 18% YoY, with especially good development in Professional Services.

Global Services represented 40% (33%) of total sales in the quarter.

In Western and Central Europe, networks sales were impacted by cautious operator spending, partly offset by network modernization projects. New managed services business is driving the YoY growth in Global Services.

Radisys Packs a 4X Punch with New T-Series 40G ATCA Platform

Radisys introduced its T40, an ATCA-based 40G platform designed to scale for carrier applications such as deep packet inspection (DPI), advanced network security and the 4G evolved packet core (EPC).

As part of the Radisys T-Series family of ATCA solutions, the new T40 platform provides 4X switching capacity over existing 10G systems and 160 Gbps of I/O performance, while aggressively lowering the cost per bit. Radisys calculates that compared to existing 10G systems its new 40G ATCA platform can deliver up to a 50% cost-per-bit reduction for network operators. The calculation is made by comparing the cost of fully-loaded 10G systems processing tens of thousands of concurrent video sessions versus an optimized 40G system.

The T40 platform is a telecom-grade system, built to Network Equipment Building System (NEBS) specifications, that is pre-integrated with a large selection of ATCA blades built with cutting edge processors and software. Key capabilities include:
  • T-Series Management Software, including platform management, load balancing and switch redundancy

  • 28 Intel processors with more than 1TB of memory in a chassis

  • High-speed 40G chassis with 70 CFM per slot

  • 160G of flexible I/O on the hub

  • A 640G hub to provide 40G to each slot

  • Next generation processors on every board, including 40G backplane connectivity

  • Pre-integrated software to enable carrier cloud services

  • Radisys Trillium 3G and LTE protocol stacks, including passive monitoring versions.
"As the number one supplier of global telecom platforms and ATCA solutions with 175 customer wins and counting, Radisys has the industry-leading expertise necessary to address the inherent risk TEMs assume when investing R&D resources in the hardware and software development and integration environment," said Keate Despain, vice president and general manager, platforms, Radisys. "The T40 is a complete, integrated platform that enables our customers to alter their R&D profile and focus their efforts on application development in order to increase service revenue-transforming the R&D expense associated with the platform away from a fixed cost to a variable cost."