Showing posts with label Earnings. Show all posts
Showing posts with label Earnings. Show all posts

Monday, January 14, 2013

Ixia Boosts Q4 Outlook

Ixia increased its Q4 2012 revenue guidance to be in the range of $123.5 million to $124.5 million, above its previously stated guidance range of $118 million to $122 million.

Combined Q4 revenue from its two recent acquisitions, Anue Systems and BreakingPoint Systems is expected to be in the range of $30 to $31 million, compared with its previously stated guidance of $26 to $28 million.

"Ixia delivered an impressive fourth quarter with strong momentum across all of our solutions," commented Vic Alston, Ixia's president and chief executive officer. “The integration of our Anue and BreakingPoint acquisitions is tracking well and we are increasing our presence at enterprise and service provider accounts. Ixia is well positioned to help these customers accelerate and secure the delivery of applications over their mobile and data center networks."

Thursday, January 10, 2013

Sandvine Posts Q4 Revenue of $27.5 Million

Sandvine reported $27.5 million in revenue for its fourth quarter of 2012, non-IFRS income of $6.9 million and net income of $6.5 million. During the quarter, Sandvine recorded a one-time, $3.8 million reduction in operating expenses for Ontario government funding related to its ongoing project under the Next Generation of Jobs Fund.  Full year results included revenue of $87.9 million and a non-IFRS loss of $2.7 million (net loss of $5.0 million).

Some Q4 2012 highlights:

  • Revenue by access technology market: wireless 48%; DSL 35%; cable 17%
  • Revenue by geography: NA 44%; APAC 26%; EMEA 18%; CALA 12%
  • Revenue by sales channel: reseller 78%; direct 22%
  • Gross margin: 71%
  • Cash, cash equivalents and short-term investments balance: $74.6 million

“We are pleased with fourth quarter results as they demonstrate ongoing progress in revenue growth and profitability,” said Dave Caputo, Sandvine’s President and CEO. “Total revenue and wireless market revenue were at record levels, driven by large initial orders from two new Tier 1 customers and large expansion orders from major existing customers, which has been a key area of focus for us in 2012.”

Wednesday, January 9, 2013

EXFO's Quarterly Revenue Declines but Company Optimistic on Higher Bookings

EXFO reported US$59.8 million in revenue for its first quarter of fiscal 2013, ended 30-Nov-2012, compared to US$66.4 million in the first quarter of 2012 and US$57.2 million in the fourth quarter of 2012. IFRS net loss in the first quarter of fiscal 2013 totaled US$1.6 million, or US$0.03 per share, compared to net earnings of US$2.9 million, or US$0.05 per diluted share, in the same period last year and a net loss of US$3.7 million, or US$0.06 per share, in the fourth quarter of 2012.

Bookings attained US$64.3 million in the first quarter of fiscal 2013 compared to US$71.4 million in the same period last year and US$55.2 million in the fourth quarter of 2012

"Despite a challenging environment during the last several quarters, I am increasingly optimistic about EXFO's opportunities for fiscal 2013 based on improving market conditions, recent investment plans announced by network operators and our highest bookings level in the past year," said Germain Lamonde, EXFO's Chairman, President and CEO. "

Wednesday, October 10, 2012

DragonWave Posts Revenue of $44.2 Million

DragonWave reported revenue of $44.2 million for the quarter ended 30-Aug-2012, compared with $13.6 million in the same period last year and $13.0 million in the preceding quarter.  Revenue through the Nokia Siemens Networks channel totaled $32.3 million in the quarter.

“We continue to advance our strategic priorities,” said DragonWave President and CEO Peter Allen.  “Our partnership with Nokia Siemens Networks is still in the integration phase and involves a wide range of activities, including access to a wide range of major global operators.  Following the June  1, 2012 closing of the acquisition of Nokia Siemens Networks’ microwave transport business, we rationalized our operations and reduced costs; we will continue to manage our cost profile to achieve profitability as we gain greater visibility into revenue opportunities.”

Tuesday, October 2, 2012

Radisys Appoints New CEO, Updates Q3 Guidance

Radisys named Brian Bronson as its new President and Chief Executive Officer, replacing Michel Dagenais, who has left the company and resigned as a member of the Radisys Board of Directors.  Mr. Bronson joined Radisys in 1999, has been an officer of the company since 2000, Chief Financial Officer since 2006 and President since 2011.

Radisys has appointed Allen Muhich as CFO and Corporate Secretary. Mr. Muhich joined Radisys in 2011 as Vice President of Finance.

In addition, Radisys trimmed its Q3 guidance.  The company now expects third quarter revenue to range from $63 million to $65 million which compares to earlier expectations of $66 million to $72 million.
“We are disappointed in our preliminary third quarter revenue levels,” commented Brian Bronson, Radisys President and Chief Executive Officer. “Our revenue, primarily in our higher margin products, is slightly below the expectations set at the beginning of the quarter and is expected to result in a third quarter Non-GAAP EPS loss. We continue to believe we are not losing market share, but rather are seeing softer customer demand in a challenging telecommunications spending environment. 

Friday, September 28, 2012

ADTRAN Cuts Guidance on Weak U.S. Carrier Spending

Citing weakness in spending by U.S. carriers, ADTRAN cut its revenue and earnings estimates for the third quarter ending September 30, 2012.

The company now expects revenue for the quarter to be approximately $162 million. GAAP earnings per share for the quarter, assuming dilution, are expected to range from $0.14 to $0.15. Non-GAAP earnings per share for the quarter are expected to range from $0.18 to $0.19.

ADTRAN Chief Executive Officer Tom Stanton stated, “Our performance this quarter continued to be affected by a challenging spending environment stemming largely from macro-economic and regulatory concerns. The largest impact continues to be in the U.S. carrier market where we saw continuing delays in project rollouts exacerbated by a decrease in legacy product sales. Although timing the resolution to these macro concerns remains challenging, recent bidding activity in Tier 1 and Tier 2 carrier accounts both domestically and abroad leave us very confident about our positioning as these markets rebound.”

Thursday, August 30, 2012

Ciena Revenue at $474 Million - Weak Spending in Europe

Ciena reported revenue of $474.1 million for its  fiscal third quarter ended July 31, 2012, up 8.9% from the same period last year and down 0.7% from the preceding quarter.  Ciena's net loss for the fiscal third quarter 2012 was $(29.8) million, or $(0.30) per common share, which compares to a GAAP net loss of $(31.5) million, or $(0.33) per common share, for the fiscal third quarter 2011.

On a conference call, Ciena executives said macro economics continued to impact its customers, as the market in Europe deterioted while North America remained steady.  The company said major players are making next gen architecture decisions and that it is winning strategic projects, although rollouts are slow. 

The outlook for Q4 is for revenue in the range of $455 to $480 million, lower than predicted earlier in the year, due in part to weakness in Europe.  

“We continue to win in the market and take share as demonstrated by a solid operating performance in the third quarter,” said Gary Smith, president and CEO of Ciena. “We are experiencing the effects of ongoing macroeconomic challenges and slower than expected roll-outs of new design wins. However, our approach to the market is working, our OPn architecture vision is gaining traction with customers globally, and our view of the long-term opportunity is unchanged.”

Some other notes:
  • Ciena ended the period with 4,463 employees.
  • There were no 10% customers in the period
  • Gross margin was 39.6%
  • There were 13 new 100G customers in the quarter, bringing the total to 44.

Thursday, August 23, 2012

China Telecom Sees Growth from 3G Mobile

China Telecom's revenues rose 14.8% in the first half of 2012 to RMB 138.0 billion (US$21.7 billion), up by 14.8%. Excluding the mobile terminalssales, operating revenues reached RMB 126,580 million, up by 11.2%. Profits beat expectations, coming in at RMB 8.8 billion with EPS of RMB 0.11.

Some company highlights from the first half of 2012:
  • Total number of mobile subscribers reached 144 million, representing a net addition of 17.71 million from the end of last year, up by 14.0%, of which 3G mobile subscribers was 50.96 million, representing a net increase of 14.67 million from the end of last year, up by 40.4%
  • Total number of wireline broadband subscribers reached 83.70 million, representing a net addition of 6.89 million from the end of last year, up by 9.0%
  • Total number of access lines in service was 167 million, representing a net decrease of 2.10 million from the end of last year, down by 1.2%
  • Wireline voice revenue as a proportion to total revenues decreased to 16.1%.
  • 3G handset data traffic increased rapidly with average monthly data usage per user reaching 111MB.
  • FTTH covered approximately 40 million households, which manifested the superior quality of China Telecom’s fibre broadband network.

Wednesday, August 22, 2012

ZTE's 1H2012 Revenue Rises 15% to RMB 42 Billion (US$6.61B)

Driven by a 26% growth in its domestic Chinese market, ZTE posted 1H2012 revenue of RMB 42.64 billion for the period, an increase of 15.2% year-on-year.

Pre-tax profit in the period was RMB 656 million, a decrease of 48.5% year-on-year. Basic earnings per share for the period were RMB 0.07. The decline in net profits was attributed to reduced investment income, exchange losses, postponement of network contract tenders of certain domestic carriers and lower gross profit margin.

Some highlights:

  • During the reporting period, ZTE reported operating revenue of RMB 20.89 billion from the domestic market, accounting for 49% of overall operating revenue and representing year-on-year growth of 26.4%.
  • From the overseas market, ZTE reported operating revenue of RMB 21.76 billion during the period, accounting for 51% of its overall operating revenue and representing year-on-year growth of 6.2%.
  • For carrier network products, ZTE reported revenue of RMB 21.28 billion, representing year-on-year growth of 3.9%.
  • The slight increase in operating revenue from the Group’s carriers’ networks segment for the first six months of 2012 reflected mainly growth in revenue derived from wireless products in the domestic and international markets and from optical communications systems and data products in the domestic market, offset by the decline in revenue derived from wireline switch and access products in the domestic and international markets and from optical communications systems and data products in the international market, resulting in a relatively small margin of growth.
  • Terminal products revenue was RMB 14.25 billion, representing year-on-year growth of 27.1%.
  • Telecommunication software systems, services and other product revenue was RMB 7.11 billion, representing year-on-year growth of 33.8%.
  • ZTE also saw a 70% increase in sales in its government and enterprise business for the period ending June 30, compared with the same period a year earlier. This was partially due to the company’s launch of data center products and a series of smart solutions in the government and business arenas, including Smart Mine, Smart City and the Smart Traffic System.

Thursday, August 16, 2012

China Mobile Reaches 683 Million Users, Wireless Data Traffic up 184% in 1H2012

China Mobile reported revenue of RMB266.5 billion (US$41.8 billion) for the first half of 2012, up 6.6% over the same period last year, as profits increased by 1.5% over the same period last year to RMB62.2 billion. EBITDA slightly decreased by 0.9% over the same period last year to RMB123.1 billion, with EBITDA margin reaching 46.2%.

Despite increased mobile penetration rates and intensified competition, China Mobile had a net addition of 33.51 million customers, bringing the total customer base to 683 million. The mid- to high-end customer base remained stable. Revenue derived from wireless data traffic, as a component of data services revenue, achieved RMB29.2 billion, up 51.6% over the same period last year.

Some highlights for the first half of 2012:
  • Added 15 million 3G subscribers to reach total of 67 million.
  • Voice usage volume continued to increase, with total voice usage reaching 2,060 billion minutes, up 9.2% over the same period last year.
  • Wireless data traffic accounted for 11.0% of operating revenue.
  • Revenue from applications and information services reached RMB24.6 billion, up 8.2% over the same period last year.
  • China Mobile's 2.83 million Wi-Fi APs 68.6% of total data traffic in 1H 2012, effectively offloading its GSM network
  • China Mobile has 750,000 GSM Base Stations, with network utilization at ~72.4%.
  • China Mobile now has nearly 240,000 3G base stations, network utilization reached 18.5%
  • China Mobile is currently offering 167 smartphone models, 126 of which are priced below RMB 1,000
  • China Mobile is making progress with its Smart Pipes initiative: Mobile Mailbox revenue was up 82% to RMB 1.1 billion, Mobile Reading Revenue was up 77% to RMB 502 million, Mobile Video revenue was up 83% to RMB 420 million, Mobile Gaming revenue was up 48% to RMB 415 million.
  • Added 480,000km of fiber to its metro networks.

Wednesday, August 15, 2012

Brocade Reports Strong Results, Sales up 10% YoY

Brocade reported revenue of $555.3 million for its third fiscal quarter of 2012, representing an increase of 10% year-over-year and 2% quarter-over-quarter. GAAP diluted earnings per share were $0.09, up from break-even EPS in Q3 2011.

"Fiscal Q3 was a great quarter for Brocade. With continued differentiation in our products and focused execution across our organization, we were able to overcome many issues in the current challenging macroeconomic environment. As a result, our financial performance in the quarter exceeded our expectations for revenue, operating margin and earnings per share," said Michael Klayko, CEO of Brocade.

Some highlights:

Storage business revenue, including products and services, was $377.6 million, up 13% year-over-year and down 6% sequentially. Storage product revenue increased 17% year-over-year and decreased 6% sequentially, in a seasonally soft quarter for the company. Brocade's 16 Gbps Fibre Channel products represented nearly 30% of director and switch revenue in the quarter.

Ethernet business revenue, including products and services, was $177.8 million, up 5% year-over-year and up 24% quarter-over-quarter. Revenue growth for the Ethernet business was driven by an increase in Federal sales, which were up 40% year-over-year and 108% quarter-over-quarter. Enterprise business revenue was up 2% year-over-year and up 21% quarter-over-quarter as the Brocade ICX products continue to ramp. Service provider business revenue was up slightly quarter-over-quarter and down 5% year-over-year.

Tuesday, August 14, 2012

JDSU's Quarterly Revenue Rises to $439 Million

JDSU reported net revenue of $439.3 million and net loss was $(24.3) million, or $(0.10) per share.  This compares to net revenue of $409.2 million and net loss of $(17.4) million, or $ (0.08) per share for the prior quarter, and net revenue of $471.8 million and net income of $9.3 million, or $0.04 per share for the fourth fiscal quarter of 2011 (ended June 30, 2011). The GAAP net loss for the fourth fiscal quarter is inclusive of a $23.7 million impairment charge of certain long-lived assets and $10.5 million of insurance proceeds associated with the Thailand flood.

For fiscal 2012, net revenue of $1,682.1 million decreased 6.8% from $1,804.5 million for fiscal 2011. The net loss for fiscal 2012 of $(57.7) million, or $(0.25) per share, compared to a net income of $71.6 million, or $0.31 per share, for fiscal 2011.

Some highlights:

  • Communications Test and Measurement revenue of $196.2 million increased by 10.3% compared to the prior quarter and decreased 7.1% compared to the fourth quarter of fiscal 2011. Revenue from this segment represented 44.7% of total net revenue.
  • Communications and Commercial Optical Products revenue of $185.0 million increased 6.9% compared to the prior quarter and decreased 8.6% compared to the fourth quarter of fiscal 2011.  Revenue from this segment represented 42.1% of total net revenue.
  • Advanced Optical Technologies revenue of $58.1 million decreased less than 1% compared to the prior quarter and decreased 1% compared to the fourth quarter of fiscal 2011.  Revenue from this segment represented 13.2% of total net revenue.

Thursday, August 9, 2012

Deutsche Telekom Maintains Free Cash Flows as Revenues, Subscribers and CAPEX Decline

Deutsche Telekom reported a solid growth trend in free cash flow in the second quarter of 2012 and the company confirmed its earnings and dividend guidance for the full year 2012.

For Q2, EBITDA remained unchanged year-on-year at EUR 4.7 billion. Revenue declined 0.7 percent to EUR 14.4 billion. Free cash flow in the second quarter came in at EUR 1.7 billion, a year-on-year decrease of around 5.6 percent.

For Q2, CAPEX was EUR 1.626 billion, down 13.5% from a year earlier. For the first half of the year, the Group invested EUR 3.8 billion in CAPEX, 5.1 percent less in terms of cash capex than in the prior-year period.

"We are keeping our word and providing a good deal of reliability to the market with very solid figures," said René Obermann, CEO of Deutsche Telekom. "We do of course continue to face a number of challenges, but we are performing very respectably compared with our competitors."

Some highlights:
  • In Germany, the company now has 1.8 million Entertain TV customers, up 40.7 percent over the prior-year period. Over 100,000 new customers signed up for this television service in Q2.
  • In Germany, the mobile contract customer base grew by 464,000 customers in the past quarter. Most of these new customers were added in the reseller segment, which generates lower average revenues per user.
  • In Germany, the number of line losses fell to a record low once again, dropping to 236,000 between April and June. This represents a year-on-year decrease of 20 percent.
  • Growth in mobile data revenues continued unabated, with a 19-percent increase to EUR 484 million in the second quarter.
  • Twenty-nine percent of the average revenue per user now comes from mobile data compared with 24 percent one year ago.
  • In Greece, DT credited successful cost cutting measures with improving the efficiency of OTE, where adjusted EBITDA margin increased by 2.2 percentage points year-on-year to 36.4 percent in the second quarter of 2012.
  • Cutting costs also had a positive impact on profitability in the Netherlands. T-Mobile Netherlands achieved an adjusted EBITDA margin of 31.7 percent compared with 29.4 percent the previous year.
  • The number of mobile contract customers across all European companies increased by around 1.0 million to 27.6 million in the space of a year (including T-Systems' customers in Hungary).
  • Smartphones now account for 60 percent of all devices sold, up from 43 percent one year ago. The more widespread use of smartphones also impacted mobile data revenues, which grew by 21.2 percent year-on-year in Europe, or as much as 24.5 percent when adjusted for exchange rate effects.
  • T-Mobile USA significantly improved its profitability. The adjusted EBITDA margin rose 2.3 percentage points year-on-year to 27.7 percent, as revenue increased 8.7 percent to EUR 3.8 billion. Measured in dollars, there was a slight decline of 3.1 percent in revenue for the second quarter of 2012 and an increase of 5.7 percent in adjusted EBITDA compared with the prior-year period.
  • T-Mobile USA had an overall loss of 205,000 customers in the second quarter. There were 557,000 net losses of branded contract customers. By contrast, the number of branded prepaid customers rose by 227,000, following a loss of 71,000 customers in the second quarter of 2011.
  • Average data revenue per customer for branded contract customers rose by 15 percent year-on-year in the past quarter to USD 19.16.
  • T-Systems saw new orders increase by 8.2 percent year-on-year to EUR 2.2 billion, but total revenue for the second quarter declined by 1.3 percent year-on-year to EUR 2.2 billion, with external revenues decreasing by 1.5 percent. 06-Aug-12

Tuesday, August 7, 2012

Novatel Wireless Posts Revenue of $102. Million

Novatel Wireless reported Q2 revenue of $ 102.4 million, down from $118.0 for the same period last year. There was a GAAP net loss of $4.5 million. Revenue for mobile products was $92.5 million while revenue for M2M was $9.9 million.

"During the second quarter our financial results were near or above the top of our guidance range for all three key metrics – revenue, non-GAAP gross margin, and non-GAAP EPS," said Peter Leparulo, CEO of Novatel Wireless. "Revenue increased by approximately $2.2 million from the first quarter, to $102.4 million, driven by strong sales of our mobile broadband devices. 07-Aug-12
A Daily R

Wednesday, August 1, 2012

Extreme Networks Post Revenue of $87.6 Million

Extreme Networks reported quarterly net revenue of $87.6 million as compared to $73.4 million in the previous fiscal quarter and $89.8 million for the same period last year. GAAP net income was $7.8 million or $0.08 per diluted share.

"Q4 results were in-line with our targets and we are encouraged by the progress we have made in our financial results," said Oscar Rodriguez, President and CEO of Extreme Networks. "Over the last fiscal year, we have transformed Extreme Networks to take a leading technology position among networking vendors. This coming year we are looking forward to building revenue from our new data center, campus and mobile backhaul product portfolios by leveraging our increased investments in key areas including Software Defined Networking (SDN) and Bring Your Own Device (BYOD) applications." 01-Aug-12

Wednesday, July 25, 2012

Sprint Nextel Reports Second Quarter 2012 Results and Updates Full Year Forecast

Sprint Nextel posted better financial results for Q2 2012 thanks to postpaid ARPU growth of $4.31 -- the largest quarterly year-over-year increase on record for the U.S. wireless industry. Overall, there was a net loss of $1.4 billion and a diluted net loss of $.46 per share for the second quarter of 2012 as compared to a net loss of $847 million and a diluted net loss of $.28 per share in the second quarter of 2011. Wireless service revenues came in at $7.3 billion during the quarter.

"The Sprint platform achieved best ever postpaid ARPU and customer churn that, combined with disciplined customer acquisition and cost management, contributed to our Adjusted OIBDA* of $1.45 billion," said Dan Hesse, Sprint CEO. "Based on this performance, we are raising the 2012 Adjusted OIBDA* forecast to between $4.5 billion and $4.6 billion."

Some highlights:
  • Sprint platform postpaid net additions were 442,000, up 68 percent sequentially driven by best ever quarterly churn performance of 1.69 percent./li>
  • The Nextel postpaid recapture rate is 60 percent./li>
  • Sprint recorded nearly 1.5 million iPhone sales in the second quarter with 40 percent going to new postpaid customers./li>
  • CAPEX was $1.2 billion in the quarter, compared to $640 million in the second quarter of 2011 and $800 million in the first quarter of 2012. Wireless capital expenditures were $1 billion in Q2, compared to $546 million last year $710 million in Q1. During the quarter, the company invested $704 million for Network Vision and approximately $230 million in data capacity related to both legacy network and Network Vision equipment./li>
  • 9,600 Nextel sites have been taken off air to date -- earlier than previous guidance./li>
  • Leasing agreements are done for more than 12,700 Network Vision sites and zoning requirements are completed for nearly 13,900 sites. In addition, nearly 6,300 sites are either ready for construction or already underway and more than 2,000 sites are on air and meeting speed and coverage enhancement targets. Sprint expects to bring 12,000 sites on air by the end of 2012 and to complete the majority of its Network Vision roll-out by the end of 2013./li>
  • The subscriber base has hit 56 million customers, including nearly 32.6 million postpaid subscribers (29.4 million on the Sprint platform and 3.1 million on the Nextel platform), 15.4 million prepaid subscribers (14.1 million on he Sprint platform and 1.3 million on the Nextel platform) and approximately 8.4 million wholesale and affiliate subscribers, all of whom utilize the Sprint platform./li>
  • Wireless cost of service increased approximately 2 percent year-over-year primarily due to higher costs associated with increased data volume and Network Vision related expenses, partially offset by lower service and repair expenses. Wireless cost of service was flat sequentially, primarily due to lower service and repair expenses, offset by seasonally higher roaming expenses./li>
  • Wireline revenues of $1 billion for the quarter declined 9 percent year-over-year primarily as a result of an intercompany rate reduction based on current market prices for voice and IP services sold to the wireless segment as well as the migration of wholesale cable VoIP customers off of
    Sprint's IP platform. Sequentially, second quarter wireline revenues were flat.

Sprint also announced the expansion of its LTE network to Baltimore, Maryland; Gainesville, Georgia; Manhattan/Junction City, Kansas; and Sherman-Denison, Texas.

Monday, July 23, 2012

TI Posts Revenue of $3.34B, Sees Cautious Market

Texas Instruments posted Q2 revenue of $3.34 billion, net income of $446 million and earnings per share of 38 cents.  EPS includes 6 cents of charges associated with the company's September 2011 acquisition of National Semiconductor and restructuring.

"TI revenue in the second quarter was about as we had expected," said Rich Templeton, TI's chairman, president and CEO.  "Our Analog and Embedded Processing segments grew sequentially, while our Wireless segment declined.   "Although we believe customers and distributors have low inventory levels, the global economic environment is causing both to become increasingly cautious in placing new orders.  Our backlog grew last quarter but orders slowed in the month of June and our backlog coverage for September is lower than normal.  As a result of this increased uncertainty, we currently estimate that our revenue in the third quarter will be about even with last quarter and below our seasonal average growth rate."

Mindspeed Posts Results, Notes 3 LTE Small Cell Design Wins

Mindspeed reported quarterly net sales of $35.5 million and a loss per share of $0.12 on a non-GAAP basis, or a loss per share of $0.18 on a GAAP basis.

Product revenue from communications convergence processing (CCP) solutions contributed 41 percent of fiscal third quarter 2012 product revenues and decreased 4 percent sequentially from the prior quarter. Product revenue from high-performance analog (HPA) products represented 48 percent of fiscal third quarter 2012 product revenue and increased 8 percent sequentially from the prior quarter. Wide area networking (WAN) product revenue accounted for the remaining 11%.

In addition, Mindspeed noted three new LTE small cell basestation design engagements, including a new major European OEM.

“While the end markets we serve remain challenging, we delivered on our revenue forecast and grew wireless revenue to $4 million in the quarter, up from $2 million in the prior quarter,” said Raouf Y. Halim, Mindspeed’s chief executive officer. “Growth in our HPA and optical access infrastructure markets was offset by the expected slowdown in our core wireline business due to global weakness in wireline carrier capital expenditures.”

Sunday, July 22, 2012

VMware Hits Revenue of $1.12 Billion, up 22% YoY

VMware reported Q2 revenue of $1.12 billion, an increase of 22% from the second quarter of 2011, and 23% measured in constant currency. Net income for the second quarter was $192 million, or $0.44 per diluted share, compared to $220 million, or $0.51 per diluted share, for the second quarter of 2011. Non-GAAP net income for the quarter was $296 million, or $0.68 per diluted share, compared to $235 million, or $0.55 per diluted share, for the second quarter of 2011.

License revenues for the second quarter of 2012 were $517 million, an increase of 11% from 2011. Service revenues, which include software maintenance and professional services, were $606 million for 2012, an increase of 33% from 2011.

"The quarter’s strong performance reflects the continued confidence customers have in our solutions," said Paul Maritz, chief executive officer, VMware. "Our products, amplified by the recent acquisitions, including Nicira, are providing the means for our customers to transform IT as we move into the Cloud Era."

Thursday, July 19, 2012

Verizon Tops 11 Million LTE Subs, 12% of its Postpaid Base

Verizon reported strong Q2 performance, including the addition of over 2.5 million LTE subscriptions and significant increases in operating cash flow. Verizon Wireless generated record-high margins and strong operational results, and Verizon's Wireline segment generated continued increases in revenues from FiOS fiber-optic services and strategic business services. 

Verizon's total operating revenues were $28.6 billion on a consolidated basis, an increase of 3.7 percent compared with second-quarter 2011. Consolidated operating income was $5.7 billion in second-quarter 2012, compared with $4.9 billion in second-quarter 2011. Consolidated EBITDA (non-GAAP, earnings before interest, taxes, depreciation and amortization) totaled $9.8 billion in second-quarter 2012, compared with $9.0 billion in second-quarter 2011.

"Verizon delivered another strong quarter of earnings growth and cash generation, and we remain on track to meet our financial objectives and produce solid double-digit earnings growth for the year," said Lowell McAdam, Verizon chairman and CEO.

In its conference call, Verizon said it is "very pleased" with the pace of LTE consumer adoption. Verizon now has nearly 11 million LTE subscribers, representing 12% of its 89 million retail postpaid connections. About 70% are smartphones and 30% are Internet devices. This means 19% of the company's smartphone base has an LTE handset. During the quarter, Verizon Wireless sold 2.9 million DROID smartphones, 2.5 million of which were #LTE, and 2.7 million Apple iPhones, up from 2.3 million a year ago. Of LTE sales, 20% were new to Verizon and 80% were upgrades. 

Some Wireless Highlights

  • Service revenues in the quarter totaled $15.8 billion, up 7.3 percent year over year. Retail service revenues grew 8.6 percent year over year, to $15.2 billion.
  • Data revenues were $6.9 billion, up $1.1 billion - or 18.5 percent - year over year, and represent 43.6 percent of all service revenues. Total revenues were $18.6 billion, up 7.4 percent year over year.
  • Retail postpaid ARPU grew 3.7 percent over second-quarter 2011, to a record $56.13, the highest growth in three years. Retail postpaid data ARPU increased to $24.53, up 15.4 percent year over year. Retail service ARPU grew 3.4 percent year over year, to a record $54.29.
  • Added 1.2 million retail net customers in the second quarter, including 888,000 retail postpaid net customers. 
  • At the end of Q2, the company had 94.2 million retail customers, a 4.9 percent increase year over year, including 88.8 million retail postpaid customers.
  • Smartphones constituted 50 percent of Verizon Wireless' retail postpaid customer phone base, up from 47 percent at the end of first-quarter 2012.
  • Retail postpaid churn was 0.84 percent, the lowest in four years, and an improvement of 5 basis points year over year. Total retail churn was 1.11 percent, an improvement of 11 basis points year over year.

Some Wireline Highlights

  • Wireline operating revenues were $9.9 billion, a decline of 3.1 percent compared with second-quarter 2011. Wireline operating income margin was 1.9 percent, compared with 1.6 percent in first-quarter 2012 and 3.1 percent in second-quarter 2011. Segment EBITDA margin (non-GAAP) was 23.1 percent in second-quarter 2012, compared with 22.6 percent in first-quarter 2012 and 23.8 percent in second-quarter 2011.
  • Consumer revenues grew 2.5 percent compared with second-quarter 2011, the highest increase in several years. Consumer ARPU for wireline services reached more than $100 for the first time, increasing to $100.26 in second-quarter 2012, up 8.5 percent compared with second-quarter 2011.
  • ARPU for FiOS customers increased to more than $149 in second-quarter 2012. FiOS services produced 65 percent of consumer wireline revenues in second-quarter 2012. Approximately 70 percent of FiOS consumer customers have purchased a "triple play" of phone, Internet and TV services.
  • Global enterprise revenues totaled $3.8 billion in the quarter, down 3.4 percent compared with second-quarter 2011. Sales of strategic services increased 4.4 percent compared with second-quarter 2011 and represented 52 percent of global enterprise revenues in second-quarter 2012. Strategic services include Terremark cloud services, security and IT solutions, and strategic networking.
  • Verizon added 134,000 net new FiOS Internet connections and 120,000 net new FiOS Video connections in second-quarter 2012. Verizon had a total of 5.1 million FiOS Internet and 4.5 million FiOS Video connections at the end of the quarter.
  • FiOS Internet penetration was 36.6 percent at the end of second-quarter 2012, compared with 33.9 percent at the end of second-quarter 2011. In the same periods, FiOS Video penetration was 32.6 percent, compared with 29.9 percent. The FiOS network now passes more than 17 million premises.
  • Broadband connections totaled 8.8 million at the end of second-quarter 2012, a 2.6 percent year-over-year increase.
  • Verizon launched several network projects during the second quarter, including deployment of next-generation routing equipment on the global Private IP network to meet growth demands, improve scalability and support 10 gigabit customer access ports and 40G and 100G backbone trunk ports; and a long-term core network architecture project for a common multi-protocol label switching (MPLS) backbone platform that will support current and future service demands.
  • The company also launched its first major initiative to build additional control plane technology into its network infrastructure. This will allow Verizon to deliver on the promise of cloud-based and mobility-enabled industry solutions, as well as enable rapid and automated recovery of complex optical mesh networks. 19-Jul-12