Showing posts with label Financials. Show all posts
Showing posts with label Financials. Show all posts

Monday, November 23, 2020

Nutanix sees rising demand fornew products and new workloads

 Nutanix reported revenue of $312.8 million for the first quarter of its fiscal 2021, down 0.6% from the same period a year ago. Non-GAAP gross margin was 81.9%, up from 80% a year earlier. 

“We are pleased with our financial performance in the first quarter, which marked a strong start to fiscal 2021 including increased adoption of new products as well as continued growth in our core hyperconverged infrastructure software,” said Dheeraj Pandey, Chairman, Co-Founder and CEO of Nutanix. “After launching our solutions on AWS in August, we announced a major partnership with Microsoft to develop our portfolio on Azure, placing the Nutanix HCI (Hybrid Cloud Infrastructure) at a significant competitive advantage to help our customers build out their hybrid and multicloud environments.”

“Our ACV-first strategy and solid go-to-market execution drove outperformance across all key financial metrics including ACV billings growth of 10 percent year-over-year and run-rate ACV growth of 29 percent year-over-year,” said Duston Williams, CFO of Nutanix. “Looking ahead, we remain focused on thoughtfully managing operating expenses as we continue to execute on our business model transformation and are confident in Nutanix’s ability to drive long-term growth for the benefit of all stakeholders.”


https://ir.nutanix.com/company/investors/default.aspx

Tuesday, November 10, 2020

Amdocs posts revenue of $1.053 billion, up 2.2% yoy

Amdocs reported revenue for its fourth fiscal quarter ended September 30, 2020 of $1,053 million, up 2.2% as reported and 1.8% in constant currency as compared to last year’s fourth fiscal quarter.  The company's GAAP net income for the fourth quarter of fiscal 2020 was $134.5 million, or $1.01 per diluted share, compared to GAAP net income of $122.0 million, or $0.90 per diluted share, in the prior fiscal year’s fourth quarter.

“I am pleased to report a return to sequential revenue growth in our fourth fiscal quarter, primarily driven by healthy activity levels in North America and the ramp-up of new customer engagements in Europe, where we had our best-ever performance. At the operating level, we accelerated our R&D investments while maintaining consistent project execution and stable profitability. Amid the ongoing global pandemic, our sales momentum also accelerated, as reflected in our record 12-month backlog which grew $140 million sequentially and 3.7% year-over-year,” said Shuky Sheffer, president and chief executive officer of Amdocs Management Limited.

Sheffer continued, “Over the last few months, we have taken several steps to accelerate our growth strategy around 5G and the cloud. The post-merger integration of Openet is proceeding well and we are happy to report a new award at AT&T, which has selected Openet’s 5G solution to quickly launch and monetize exciting new 5G services on the cloud. Additionally, we have signed a new multi-year strategic agreement with AWS as part of which we will bring our cloud-native BSS offerings and wide range of services to jointly address the rapidly growing cloud market in the coming years. As part of another move to focus on our strategy, we have also signed an agreement for the divestiture of OpenMarket for approximately $300 million cash with Infobip, a company in which One Equity Partners is the primary institutional investor. With this transaction, Amdocs is divesting a non-strategic asset in the mobile messaging domain and remaining laser-focused on our core strategic growth initiatives.”


Sunday, November 8, 2020

NTT's revenue dips, income increases on flat subscriber trends

NTT Group reported operating revenues ¥5,711.4 billion, down approximately 3% from the same period last year. Operating income increased ¥1,008.6 billion, up 2.6% year-on-year.

Overseas sales were $9.1 billion, down 7.3% year-on-year due in part to the pandemic.

In order to provide customers with appropriate services both during and after COVID-19, NTT has created a lineup of services under a new service brand called "Remote World".  This will include “OriHime”, a remote-controlled avatar robot; customer support screen sharing service; a new “elgana” business chat service; a new SwipeVideo service that allows different video by swiping the screen.“Smart Me™” digital employee ID that uses smartphones instead of traditional employee badges.

https://www.ntt.co.jp/news2020/2011efgz/pdf/rzkv201106a_all.pdf




Thursday, November 5, 2020

Infinera posts Q3 revenue of $340 million, up 4.2%

Infinera reported GAAP revenue for the quarter was $340.2 million, up 2.6% compared to $331.6 million in the second quarter of 2020 and up 4.2% from $325.3 million in the third quarter of 2019. GAAP gross margin for the quarter was 31.8% compared to 29.4% in the second quarter of 2020 and 26.7% in the third quarter of 2019. Non-GAAP net income for the quarter was $4.2 million, or $0.02 per share, compared to a net loss of $(17.2) million, or $(0.09) per share, in the second quarter of 2020, and a net loss of $(30.5) million, or $(0.17) per share, in the third quarter of 2019.


“We delivered a very strong Q3, achieving non-GAAP operating profitability with non-GAAP revenue, gross margin and operating margin growing both sequentially and year-over-year,” said David Heard, Infinera COO. “We remain focused on the opportunity to grow our market share, expand margins and drive earnings growth through innovation and operational execution.”

“I continue to be very optimistic about the opportunities ahead of us that are created as the industry transitions to 800G, Open Optical networks and intelligent pluggables,” continued Tom Fallon, Infinera CEO. “These transitions are happening in a healthier competitive environment where vertical integration and assurance of network security are increasingly valued.”

https://investors.infinera.com/home/default.aspx


CommScope reports Q3 sales of $2.168 billion, down 8.9% yoy


CommScope reported net sales of $2.168 billion up 3% the preceding quarter but down 8.9% from a year earlier. Net sales declined primarily due to year over year decreases in the Home Networks and Outdoor Wireless Networks segments.

CommScope generated a net loss of $(116.3) million, or $(0.66) per basic share, in the third quarter, compared to the prior year period's net loss of $(156.5) million, or $(0.88) per basic share. Non-GAAP adjusted net income for the third quarter of 2020 was $123.1 million, or $0.51 per diluted share, versus $126.9 million, or $0.55 per diluted share, in the third quarter of 2019.

“Since joining CommScope in October, I have been impressed by the team’s relentless focus on executing against our strategic objectives and delivering for our customers around the world,” said Chuck Treadway, president and chief executive officer. “Communication networks are essential to our economies, education system and for keeping us connected on a personal level. I couldn’t be happier to be a part of a company providing such critical network connectivity.


“As we look ahead, the Board and management team are focused on growing our business and creating long-term, profitable growth through a combination of investment opportunities and cost-cutting measures. While there remains much to do, we are confident in our ability to deliver enhanced profitability and unlock even greater value for CommScope and our shareholders. I am excited for CommScope to continue to play a critical role in advancing the 5G and 10G revolutions and shaping our global networks, today and in the future.” 

Wednesday, November 4, 2020

Zain Group cites impact of COVID-19 on telecom revenues

Zain Group reported consolidated revenue of KD 1.2 billion (USD 3.9 billion) for the first nine months of 2020, down 2% Y-o-Y, while consolidated EBITDA for the period reached KD 502 million (USD 1.6 billion), down 7% Y-o-Y, reflecting a healthy EBITDA margin of 42%. Consolidated net income amounted to KD 132 million (USD 429 million), reflecting a 14% Y-o-Y decrease. Earnings per share amounted to 30 fils (USD 0.10) for the nine-month period. For 9M 2020, foreign currency translation impact, predominantly due to the 14% currency devaluation in Sudan from an average of 46 at 9M 2019 to 53.7 at 9M 2020 (SDG / USD), cost the Group USD 78 million in revenue, USD 36 million in EBITDA and USD 9 million in net income. 

Zain highlighted e notable 68% Y-o-Y increase in net income at Zain Iraq and healthy 28% revenue growth in USD terms at Zain Sudan.   


Mr. Bader Nasser Al-Kharafi, Zain Vice-Chairman and Group CEO commented, “The telecom sector is not immune to the current pandemic facing the global community that will continue to play havoc across all aspects of socio-economic life for the foreseeable future. Nevertheless, we continue our resolve and commitment to ensuring meaningful connectivity and implementing more digitalization initiatives to better serve businesses, governments, and societies, aiming to lessen the impact of COVID19 on society.”

Operational review of key markets for the nine months ended 30 September, 2020

  • Kuwait: Maintaining its market leadership, Zain Group’s flagship operation saw its customer base serve 2.6 million. It remains the Group’s most profitable operation with revenue for 9M 2020 reaching KD 236 million (USD 770 million), EBITDA reaching KD 85 million (USD 277 million), representing an EBITDA margin of 36%. Net income reached KD 58 million (USD 189 million) for 9M 2020, with data revenue accounting for 39% of total revenue.
  • Saudi Arabia: For the 9M 2020, Zain KSA generated revenue of SAR 5.9 billion (USD 1.6 billion), EBITDA for the period reached SAR 2.6 billion (USD 695 million), reflecting an EBITDA margin of 45%. Net income for the nine months reached SAR 224 million (USD 60 million).  Data revenue represents 51% of total revenue and customers served stood at 7.0 million. 
  • Iraq: Zain Iraq’s 9M 2020 revenue reached USD 708 million and EBITDA amounted to USD 285 million, reflecting EBITDA margin of 40%. The operation reported an impressive net profit of USD 61 million for 9M 2020. The operator served 15.7 million customers maintaining its market leading position.
  • Sudan: For 9M 2020, Zain Sudan generated revenue of SDG 14.9 billion (USD 278 million), with EBITDA amounting to SDG 6.5 billion (USD 121 million), reflecting an EBITDA margin of 44%. Net income for the period reached SDG 1.9 billion (USD 36 million). Data revenue represented 25% of total revenue, while the operator’s customer base reached 16.0 million, maintaining its market leadership.
  • Jordan: For 9M 2020, Zain Jordan revenue reached USD 359 million, EBITDA reached USD 160 million, reflecting an EBITDA margin of 44%, with net income reaching USD 56 million. With the ongoing expansion of 4G services across the country, data revenue represented 46% of total revenue.  Zain Jordan served 3.5 million customers maintaining its market leading position.
  • Bahrain: Zain Bahrain generated revenue of USD 123 million for 9M 2020. EBITDA for the period amounted to USD 42 million, reflecting an EBITDA margin of 34%. Net income amounted to USD 10 million. 

Monday, November 2, 2020

ADTRAN posts Q3 revenue of $133.1 million, up 16.7% yoy

ADTRAN reported Q3 revenue of $133.1 million, up 16.7% from the same period a year ago. Non-GAAP net income was $7.9 million and non-GAAP earnings per share, assuming dilution, was $0.16 per share. 

ADTRAN Chairman and Chief Executive Officer Tom Stanton stated, “We had a solid quarter with outstanding customer traction, securing 38 new service provider customers, ranging from global Tier-1 operators to electric co-operatives and utilities, municipalities, cable MSOs and regional broadband providers. We are also making great progress with the Tier 1 fiber access projects we announced earlier this year and we continue to have very strong momentum on new customer acquisition across a broad base of market segments. We continue to introduce new fiber access and software innovations that have been well timed as we enter the early stages of a generational communications infrastructure network upgrade cycle driven by confluence of favorable government, regulatory, technology and competitive factors.”

ADTRAN also announced that its Board of Directors declared a cash dividend for the third quarter of 2020. The quarterly cash dividend of $0.09 per common share is to be paid to the company’s stockholders of record as of the close of business on November 17, 2020. 

Thursday, October 29, 2020

AWS delivers Q3 revenue of $11.6 billion, up 29% yoy


Amazon Web Services generated Q3 sales of $11.601 billion, up 29% from $8,995 billion a year earlier. AWS operating income was $3.535 billion, up 56.3% compared to $2.261 billion a year earlier.

Some AWS highlights:

  • AWS announced significant customer wins with Global Payments; biotechnology company Moderna; restaurant chain Jack in the
  • Box; premier visual effects company Weta Digital to accelerate rendering of graphical visual effects; leading job site Indeed to migrate more than 30 petabytes of data to AWS; household appliance manufacturer Arçelik to use analytics, IoT, and machine learning services to build smart factories, automated production lines, and cloud connected appliances; IT services company 
  • and AWS Partner Network (APN) Premier Consulting Partner DXC Technology to replace its legacy contact center technology; hotel franchise Best Western International; and cold chain provider Carrier to transform how temperature-sensitive goods such as food, medicines, and vaccines are moved around the world.
  • AWS announced the general availability of Amazon Braket, a fully managed service that provides a development environment to help customers explore and design quantum algorithms. 
  •  AWS announced the general availability of Amazon Timestream, a new time series database for IoT and operational
  • applications that can scale to process trillions of time series events per day up to 1,000 times faster than relational
  • databases, and at as low as 1/10th the cost. 
  • AWS announced the general availability of five AWS Wavelength Zones in Atlanta, Boston, New York City, the San Francisco Bay Area, and Washington D.C., enabling developers to build applications that deliver ultra-low latency to mobile devices and users by deploying AWS compute and storage at the edge of Verizon’s 5G network.  AWS is partnering with Verizon to bring AWS Wavelength to additional customers across the United States, and with other leading telecommunications providers, including Vodafone, SK Telecom, and KDDI, to launch Wavelength Zones across Europe, South Korea, and Japan in 2020 and beyond.
  • AWS announced the general availability of Amazon EBS io2 volume, the next generation Provisioned IOPS SSD volumes for Amazon Elastic Block Store (Amazon EBS). 
  • AWS announced the general availability of AWS Nitro Enclaves, a new capability that makes it easier for customers to create isolated compute environments within Amazon Elastic Compute Cloud (EC2) instances to securely process and protect highly sensitive data. 

https://s2.q4cdn.com/299287126/files/doc_financials/2020/q3/AMZN-Q3-2020-Earnings-Release.pdf

Nokia posts 7% year-on-year decrease in net sales

Nokia reported a 7% year-on-year decrease in net sales to EUR 5.294 billion (approximately US$6.927 billion), largely driven by lower services within Mobile Access. Operating margin improved to 6.6% from 4.6% a year earlier. Operating profit (non-IFRS) rose to EUR 486 million, up 2% YOY. 

Nokia said the impact of COVID-19 was primarily related to factory closures, resulting in a net sales impact of approximately EUR 200 million in the first nine months of 2020, with the majority of these net sales expected to be shifted to future periods, rather than being lost. At the end of Q3 2020, Nokia is no longer experiencing factory closures related to COVID-19. In addition, COVID-19 has affected our operational costs, and we now expect a temporary benefit of approximately EUR 250 million due to lower travel and personnel expenses related to COVID-19 in full year 2020.

Pekka Lundmark, Nokia's President and CEO, states:

"In my first quarter as CEO of Nokia, I have seen both opportunities and challenges. As our solid Q3 results demonstrate, we are making good progress in many parts of our business. Profitability was up on a year-on-year basis, we had the fifth consecutive quarter of solid free cash flow, Nokia Enterprise maintained its double-digit growth, and we continued to strengthen the competitiveness and cost position of our mobile radio products."

"When I look ahead, however, the good progress we have made is not enough. Our financial performance in 2021 is expected to be challenging, and more change is needed. We have lost share at one large North American customer, see some margin pressure in that market, and believe we need to further increase R&D investments to ensure leadership in 5G. In fact, we have decided that we will invest whatever it takes to win in 5G. Our customers are counting on us and we will be there for them."

Wednesday, October 28, 2020

Microsoft's commercial cloud revenue up 31% YoY, Azure up 48%

Microsoft reported revenue of $37.2 billion for the quarter ended September 30, up 12% compared to a year earlier. Net income was $13.9 billion and increased 30%.

“The next decade of economic performance for every business will be defined by the speed of their digital transformation,” said Satya Nadella, chief executive officer of Microsoft. “We are innovating across our full modern tech stack to help our customers in every industry improve time to value, increase agility, and reduce costs." 

"Demand for our cloud offerings drove a strong start to the fiscal year with our commercial cloud revenue generating $15.2 billion, up 31% year over year,” said Amy Hood, executive vice president and chief financial officer of Microsoft. “We continue to invest against the significant opportunity ahead of us to drive long-term growth.”

Commercial cloud includes Office 365 commercial, Azure, the commercial portion of LinkedIn, Dynamics 365, and other cloud properties.


Highlights

  • Revenue in Productivity and Business Processes was $12.3 billion and increased 11%, with the following business highlights:
  • Office Commercial products and cloud services revenue increased 9% driven by Office 365 Commercial revenue growth of 21% (up 20% in constant currency)
  • Office Consumer products and cloud services revenue increased 13% and Microsoft 365 Consumer subscribers increased to 45.3 million
  • LinkedIn revenue increased 16%
  • Dynamics products and cloud services revenue increased 19% (up 18% in constant currency) driven by Dynamics 365 revenue growth of 38% (up 37% in constant currency)
  • Revenue in Intelligent Cloud was $13.0 billion and increased 20% (up 19% in constant currency), with the following business highlights:
  • Server products and cloud services revenue increased 22% (up 21% in constant currency) driven by Azure revenue growth of 48% (up 47% in constant currency)
  • Revenue in More Personal Computing was $11.8 billion and increased 6%, with the following business highlights:
  • Windows OEM revenue declined 5%
  • Windows Commercial products and cloud services revenue increased 13% (up 12% in constant currency)
  • Xbox content and services revenue increased 30%
  • Surface revenue increased 37% (up 36% in constant currency)
  • Search advertising revenue excluding traffic acquisition costs decreased 10% (down 11% in constant currency)
  • Microsoft returned $9.5 billion to shareholders in the form of share repurchases and dividends in the first quarter of fiscal year 2021, an increase of 21% compared to the first quarter of fiscal year 2020.

Thursday, October 22, 2020

Huawei's growth rate slows to 10%

Huawei reported revenue of CNY671.3 billion (approximately US$100.42 billion) for the first three quarters of 2020, an increase of 9.9% over the same period last year. The company said it achieved a net profit margin in this period was 8.0%, in line with its expectations.

Huawei also said its global supply chain is being put "under intense pressure and its production and operations face significant challenges" due to COVID-19. 

https://www.huawei.com/en/news/2020/10/huawei-announces-q3-2020-business-results-business-performance

Huawei reports a 13% increase in 1H sales to US$64.9 biliion

The company issued the following statement: "As countries around the globe are grappling with the COVID-19 pandemic, information and communications technologies (ICT) have become not only a crucial tool for combatting the virus, but also an engine for economic recovery. Huawei reiterated its commitment to working with carriers and industry partners to maintain stable network operations, accelerate digital transformation, and support efforts to contain local outbreaks and reopen local economies."

Huawei reported overall revenue of CNY454 billion (approx. US$64.9 billion) in revenue for the first half of 2020, a 13.1% increase year-on-year, with a net profit margin of 9.2%.

Huawei's carrier, enterprise, and consumer businesses achieved CNY159.6 billion, CNY36.3 billion, and CNY255.8 billion in revenue, respectively.  "The complex external environment makes open collaboration and trust in global value chains more important than ever. Huawei has promised to continue fulfilling its obligations to customers and suppliers, and to survive, forge ahead, and contribute to the global digital economy and technological development, no matter what future challenges the company faces."

Intel posts a 7% drop in Q3 data center group revenue

Citing COVID-19 effects in enterprise and government, Intel reported third-quarter revenue of $18.3 billion, down 4 percent year-over-year (YoY). Data-centric revenue declined 10 percent while PC-centric revenue was better than expected, up 1 percent YoY. Third-quarter GAAP earnings-per-share (EPS) was $1.02, down 25 percent YoY; non-GAAP EPS of $1.11 was down 22 percent YoY, above July expectations.

"Our teams delivered solid third-quarter results that exceeded our expectations despite pandemic-related impacts in significant portions of the business,” said Bob Swan, Intel CEO. “Nine months into 2020, we’re forecasting growth and another record year, even as we manage through massive demand shifts and economic uncertainty. We remain confident in our strategy and the long-term value we’ll create as we deliver leadership products and aim to win share in a diversified market fueled by data and the rise of AI, 5G networks and edge computing.”

Some highlights

  • In the Data Center Group (DCG), Cloud revenue grew 15 percent YoY on continued demand.
  • DCG's Enterprise & Government market segment was down 47 percent YoY following two quarters of more than 30 percent growth.
  • The pandemic also weighed on third-quarter data-centric results in the Internet of Things Group and the memory business (NSG). 
  • Mobileye revenue returned to growth in the third quarter as global vehicle production improved. The business also launched its new Mobileye SuperVision surround-view ADAS solution.
  • The PC-centric business (CCG) was up 1 percent YoY in the third quarter on continued notebook strength to support the work- and learn-at-home dynamics of COVID-19. 
  • Intel's third 10nm manufacturing facility, which is located in Arizona, is now fully operational and the company now expects to ship 30% higher 10nm product volumes in 2020 compared to January expectations.

http://www.intc.com/results.cfm

AT&T reports wireless and fiber subscriber gains as overall revenue dips

 AT&T reported consolidated revenues for the third quarter of $42.3 billion, down 5% from $44.6 billion in the year-ago quarter. Third-quarter net income attributable to common stock was $2.8 billion, or $0.39 per diluted common share, versus $3.7 billion, or $0.50 per diluted common share, in the year-ago quarter.

AT&T said the COVID-19 pandemic impacted revenues across all businesses, particularly WarnerMedia and also domestic wireless service revenues, primarily from lower international roaming. For the quarter, revenue declines included domestic video, Warner Bros. television and theatrical products, legacy wireline services and Latin America due to foreign exchange pressure. These declines were partly offset by higher wireless equipment revenues and higher advertising revenues associated with timing shift of sports from the first half of 2020.

“We delivered a solid quarter with good subscriber momentum in our market focus areas of connectivity and software-based entertainment,” said John Stankey, AT&T chief executive officer. “Wireless postpaid growth was the strongest that it’s been in years with one million net additions, including 645,000 phones. We added more than 350,000 fiber broadband customers and are on track to grow our fiber base by more than 25% this year. And we continue to grow and scale HBO Max, with total domestic HBO and HBO Max subscribers topping 38 million — well ahead of our expectations for the full year. Our strong cash flow in the quarter positions us to continue investing in our growth areas and pay down debt. We now expect 2020 free cash flow of $26 billion or higher with a full-year dividend payout ratio in the high 50s%.”

Communications 

Mobility:

  • More than 5 million total domestic wireless net adds
  • More than 1 million postpaid net adds, including 645,000 postpaid phones (phones include 151,000 Keep Americans Connected Pledge (KACP) paying accounts)
  • 245,000 prepaid net adds, including 131,000 prepaid phone net adds
  • Postpaid phone churn of 0.69%, significant improvement year over year (0.77% when excluding KACP paying accounts)
  • Service revenues down 0.3% due to decline in international roaming; equipment revenues up year over year
  • Fastest nationwide 5G network and, for the 7th consecutive quarter in a row, the fastest network in the nation

Entertainment Group:

  • A record high 357,000 AT&T Fiber net adds and 158,000 total broadband net adds (includes 28,000 and 104,000 KACP paying accounts, respectively).
  • Solid IP broadband and video ARPU gains
  • AT&T TV gains helped offset premium TV loss
  • 590,000 net loss, the result of lower churn and higher quality base (includes 116,000 KACP paying accounts)

WarnerMedia 

  • Total domestic HBO and HBO Max subscribers4 top 38 million and 57 million5 worldwide, respectively
  • 38 million exceeds previously announced year-end target of 36 million
  • HBO Max activations more than doubled from second-quarter levels
  • HBO Max advertising-supported service on track to launch in 2021
  • Industry-leading 38 Primetime and 15 News and Documentary Emmy Awards
  • Results impacted by the COVID-19 disruption and return of sports programming in the quarter

Verizon reports decline in Q3 revenue citing COVID-19, raises guidance

Verizon reported consolidated Q3 operating revenues of $31.5 billion, down 4.1 percent from third-quarter 2019.  EPS was $1.05, compared with $1.25 in third-quarter 2019, including approximately negative 5 cents of COVID-19-related net impacts. Third-quarter 2020 EPS included a net pre-tax charge of about $1.1 billion related to a mark-to-market adjustment for pension liabilities. 

“We continue to demonstrate our strength and resilience by delivering very strong third quarter financial results,” said Verizon Chairman and CEO Hans Vestberg. “We are energized by the transformational technology that our 5G Ultra Wideband and 5G nationwide bring. Our purpose-driven culture paired with our network leadership will shape the future, for the better."

Year-to-date capital expenditures were $14.2 billion.

Some highlights:

Consumer

  • Total Verizon Consumer revenues were $21.7 billion, a decrease of 4.3 percent year over year, primarily driven by a significant decrease in wireless equipment revenue due to reduced customer activity. 
  • Consumer reported 136,000 wireless retail postpaid net additions. This consisted of 142,000 phone net additions and 113,000 tablet net losses, offset by 107,000 other connected device net additions. Postpaid smartphone net additions were 258,000.
  • Consumer wireless service revenues were $13.4 billion in third-quarter 2020, a 0.7 percent decrease year over year.
  • Total retail postpaid churn was 0.80 percent in third-quarter 2020, and retail postpaid phone churn was 0.63 percent. 
  • Consumer reported 139,000 Fios Internet net additions in third-quarter 2020, an increase from 30,000 Fios Internet net additions in third-quarter 2019. Consumer and Business reported 144,000 total Fios Internet net additions, the most Fios Internet net additions since fourth-quarter 2014. Consumer reported 61,000 Fios Video net losses in third-quarter 2020, reflecting the ongoing shift from traditional linear video to over-the-top offerings. 
  • In third-quarter 2020, segment operating income was $7.4 billion, a decrease of 0.7 percent year over year, and segment operating income margin was 34.2 percent, an increase from 33.0 percent in third-quarter 2019. Segment EBITDA (non-GAAP) totaled $10.3 billion in third-quarter 2020, flat year over year. Segment EBITDA margin (non-GAAP) was 47.4 percent in third-quarter 2020, up from 45.3 percent in third-quarter 2019, and included approximately 60 basis points of headwind from the deferral of commission expense. 

Business results

  • Total Verizon Business revenues were $7.7 billion, down 1.7 percent year over year. The Business segment continues to be resilient through a challenging environment as the company provides critical solutions to customers across state and local government agencies and education providers.
  • Business reported 417,000 wireless retail postpaid net additions in third-quarter 2020. This consisted of 141,000 phone net additions, 86,000 tablet net additions, and 190,000 other connected device additions.
  • Business wireless service revenues were $3.0 billion in third-quarter 2020, a 4.9 percent increase year over year, primarily driven by Public Sector and Small and Medium Business. 
  • Total retail postpaid churn was 1.19 percent in third-quarter 2020, and retail postpaid phone churn was 0.96 percent.  
  • In third-quarter 2020, segment operating income was $923 million, a decrease of 5.5 percent year over year, and segment operating income margin was 11.9 percent, compared with 12.4 percent in third-quarter 2019. Segment EBITDA (non-GAAP) totaled $2.0 billion in third-quarter 2020, a decrease of 1.9 percent year over year. Segment EBITDA margin (non-GAAP) was 25.2 percent, which was flat year over year.

Media results

  • Total Verizon Media revenues were $1.7 billion, down 7.4 percent year over year, but an increase of 21.2 percent from second-quarter 2020. 
  • Year over year revenue trends improved each month during third-quarter 2020. 
  • Trends resulting from the COVID-19 pandemic continued to impact both search and advertising in the quarter, though Media continues to drive increased customer engagement on its owned and operated properties.

Wednesday, October 21, 2020

Ericsson's network sales rise 13% in Q3

Ericsson reported Q3 sales of SEK 57.5 (57.1) billion, up 7% YoY when adjusted for comparable units and currency.

The company said growth was driven by 5G sales in mainland China.

Börje Ekholm, President and CEO of Ericsson, states: "We continue to win footprint in several markets leveraging our competitive 5G portfolio. The gross margin[1] improved in all segments in the third quarter and reached 43.2% (37.8%), the highest since 2006. With the acquisition of Cradlepoint, expected to close in Q4, we are making further progress in our strategy to build an enterprise business. Covid-19 has so far had limited impact on our business, but we are closely monitoring any signs of a change in the situation. The year to date results strengthen our confidence in delivering on the 2020 Group target.

  • Networks grew organically by 13% and reported a gross margin of 46.7% (41.6%), reflecting high activity levels in North East Asia and North America. Underlying business fundamentals remain strong in North America driven by consolidation in the US operator market, pending spectrum auctions, and increased demand for 5G. The 5G contracts in Mainland China have developed according to plan, contributing positively to profits in Q3 and are expected to improve further. Ericsson's business in Europe grew based on several footprint gains. While the pandemic has hurt revenues for several of  customers, and in some cases this has led to a reduction of capex, we have not seen any negative impact on our business, largely due to footprint gains. However, the pandemic negatively impacted sales in Latin America and Africa.
  • Digital Services continued to make good progress on the execution of the turnaround plan, transforming the business and increasing software sales. The gross margin[1] improved to 43.5% (38.3%), supported by increased software sales and improvements in the underlying business. Our cloud-native 5G core portfolio shows very positive momentum with a high win-ratio and a significant number of new customer contracts. We are selectively increasing R&D investments to accelerate our growth portfolio to capture market opportunities. Sales in Ericsson's legacy portfolio is declining faster than earlier predicted. In the short term, this shortfall will not be compensated by the growth in new offerings and therefore our sales volume is lower than expected. With weaker sales in combination with higher R&D investments, there is a risk of further delay in reaching the 2020 operating margin target for Digital Services.
  • Managed Services delivered a gross margin[1] of 20.1% (17.9%). The 4Q rolling operating margin[1] is 7.4%. Sales declined mainly due to the US operator consolidation. 
  • Emerging Business and Other reported a gross margin of 30.5% (20.5%). IoT platform sales grew by more than 40% despite an impact on demand from Covid-19. 



Ericsson 5G status on October 21: 65 live networks and 112 commercial agreements with unique operators – Strong growth in North East Asia and continued busi


Xilinx posts sales of $767 million - strength in data center and automotive

 Xilinx reported revenues of $767 million for the second quarter of its fiscal year 2021, up 5% sequentially but down 8% from the same period last year.

GAAP net income for the quarter was $194 million, or $0.79 per diluted share. Non-GAAP net income was $203 million, or $0.82 per diluted share.

“We are pleased with our fiscal second quarter performance, which came in above the mid-point of guidance,” said Xilinx president and CEO Victor Peng. “Our strong results were driven by another record quarter in our Data Center Group and Aerospace & Defense businesses, as well as improvement in our Automotive and Broadcast end markets. In addition, RFSoC sales ramped meaningfully with a tier-1 wireless OEM customer for 5G radio deployment in North America.

“Our strategic transformation to an adaptive platform company continues with healthy design win momentum during the quarter. Notable customer wins included a marquee SmartNIC design win with a U.S. tier-1 hyperscaler, as well as Zynq MPSoC design wins with Subaru and Continental. We also remain on track with our Versal program ramp with a leading wireless OEM later this year.”

“Xilinx business continued to strengthen in fiscal Q2, buoyed by the economic recovery and increasing demand across our broad set of end markets,” said Xilinx CFO Brice Hill. “This drove better than expected sequential revenue growth of 5% and GAAP operating income growth of 17%, resulting in $232 million of free cash flow and $93 million in capital return to stockholders with our quarterly dividend. Our financial position is strong and we remain confident as we prepare to expand the Zynq and Versal product lines and capture additional growth opportunities.”

Sunday, October 18, 2020

GTT sells infrastructure division for $2.15 billion

GTT Communications will sell its infrastructure division to I Squared Capital, an independent global infrastructure investment firm, for $2.15 billion.

  • The infrastructure division sale consists of selected network and data center assets accumulated from several GTT acquisitions, including Interoute, Hibernia, and KPN International, that comprise:
  • A 103,000 route kilometer fiber network with over 400 points of presence, spanning 31 metro areas and interconnecting 103 cities across Europe and North America.
  • Three transatlantic subsea cables, including GTT Express, the lowest latency route between Europe and North America.
  • Fourteen Tier 3 data centers and over 100 colocation facilities.
  • Offering a full suite of telecom and data infrastructure solutions to marquee clients.

Gautam Bhandari, managing partner at I Squared Capital stated, “Now more than ever, digital infrastructure is an essential asset class as societies across the globe rely heavily on high-speed digital bandwidth. This acquisition builds upon I Squared Capital’s overarching global digital infrastructure strategy and experience with complex carve-outs to expand the reach of our platforms across Asia, Europe and North America.”

 GTT names Ernie Ortega as interim CEO

GTT Communications named Ernie Ortega as interim CEO while the board continues its search for a permanent CEO. Ortega currently serves as GTT’s Chief Revenue Office. GTT's Board of Directors also announced that Don MacNeil has joined the GTT leadership team as chief operating officer (COO). Mr. MacNeil will lead GTT’s network operations, service delivery, assurance and vendor management teams, as well as GTT’s product organization. “I am delighted...

GTT looks to sell subsea cables and European fiber network

GTT Communications has retained Credit Suisse and Goldman Sachs as financial advisors in connection with the potential sale of the Infrastructure Division, which includes its terrestrial pan-European fiber network, subsea transatlantic fiber and data centers. This infrastructure was part of GTT's acquisition of Interoute and of Hibernia. “The appointment of Credit Suisse and Goldman Sachs is an important step in our process to explore the sale of...

GTT to Acquire Global Capacity, Building its SD-WAN

GTT Communications agreed to acquire Global Capacity, a provider of enterprise network connectivity solutions, for $100 million in cash and 1.85 million shares of GTT common stock, to be issued to the sellers at closing. Global Capacity, which is based in Waltham, Mass., addresses a range of enterprise network issues including difficulty in load sharing traffic across a mix of access connections, complex, static and manual network configurations...

GTT's acquisition of Interoute would add 72K km of European fiber to its transatlantic cables

GTT Communications agreed to acquire Interoute, operator of one of Europe’s largest independent fiber networks and cloud networking platforms, for approximately €1.9 billion ($2.3 billion) in cash. Interoute's European fiber backbone spans 72,000 route kilometers connects nearly 200 data centres and colocation facilities.  Interoute also owns 15 of its own data centers and 33 colocation facilities. Its customers include international enterprises,...

GTT to acquire KPN International for EUR 50 million

GTT Communications agreed to acquire KPN International for approximately €50 million in cash, on a cash and debt-free basis. KPN International, which is headquartered in the Netherlands and is a division of KPN N.V., operates a global IP network serving enterprise and carrier clients. GTT said the acquisition augments its the scale and reach of its Tier 1 global IP network in Europe. KPN International's network spans 21 countries, including long-haul...

GTT acquires Accelerated Connections, expanding across Canada

GTT Communications has acquired Accelerated Connections (ACI), a Toronto-headquartered provider of managed networking, voice-over-IP (VoIP) and colocation services, 

Monday, August 31, 2020

Zoom reports 458% growth in key customer segment

Zoom Video Communications reported quarterly revenue of $663.5 million, up 355% year-over-year. GAAP net income was $185.7 million, or $0.63 per share, compared to GAAP net income attributable to common stockholders of $5.5 million, or $0.02 per share in the second quarter of fiscal year 2020. Non-GAAP net income for the quarter was $274.8 million.

“Organizations are shifting from addressing their immediate business continuity needs to supporting a future of working anywhere, learning anywhere, and connecting anywhere on Zoom's video-first platform. At Zoom, we strive to deliver a world-class, frictionless, and secure communication experience for our customers across locations, devices, and use cases,” said Zoom founder and CEO, Eric S. Yuan. “Our ability to keep people around the world connected, coupled with our strong execution, led to revenue growth of 355% year-over-year in Q2 and enabled us to increase our revenue outlook to approximately $2.37 billion to $2.39 billion for FY21, or 281% to 284% increase year-over-year.”

Some metrics:

  • Approximately 370,200 customers with more than 10 employees, up approximately 458% from the same quarter last fiscal year.
  • 988 customers contributing more than $100,000 in trailing 12 months revenue, up approximately 112% from the same quarter last fiscal year.
  • A trailing 12-month net dollar expansion rate in customers with more than 10 employees above 130% for the 9th consecutive quarter.



Thursday, August 27, 2020

Nutanix posts revenue of $327.9M, up 9% yoy, Bain invests $750M

Nutanix reported revenue of $327.9 million for its fourth quarter of fiscal 2020, up 9% year-over-year from $299.9 million in the fourth quarter of fiscal 2019. GAAP gross margin was 79.6%, up from 77.0% in the fourth quarter of fiscal 2019. There was a GAAP net loss of $185.3 million, compared to a GAAP net loss of $194.3 million in the fourth quarter of fiscal 2019; Non-GAAP net loss was $79.0 million, compared to a non-GAAP net loss of $105.8 million in the fourth quarter of fiscal 2019.

  • Expanded Customer Base: Nutanix ended the fourth quarter of fiscal 2020 with 17,360 end-customers. 
  • During the quarter, the company launched Nutanix Hybrid Cloud Infrastructure on Amazon Web Services: 
  • Reached 88 Percent of Billings from Subscription: Nutanix continued its transition to a subscription-based business model, with subscription billings up 29% year-over-year to $341 million, representing 88% of total billings, and subscription revenue up 46% year-over-year to $285 million, representing 87% of total revenue.


“I am thrilled to report strong results to close the year, a performance all the more impressive given the uncertainty of the global market environment we are facing today,” said Dheeraj Pandey, Chairman, Co-Founder and CEO of Nutanix. “We have demonstrated growth in the midst of a pandemic and have now generated $1.6 billion in annual billings. In addition, the $750 million investment from Bain Capital Private Equity validates the market opportunity in front of us and positions us well with enhanced financial flexibility and resources to further scale, gain share and remain at the forefront of innovation in our industry. The strategic value of IT is clear as customers increasingly value our software and solutions in a rapidly changing work environment. Our biggest product news of the quarter was launching our solution on bare metal with AWS, creating a new type of HCI: hybrid cloud infrastructure.”

Nutanix also announced that Bain Capital Private Equity will make an investment of $750 million in convertible notes. Nutanix plans to use the investment to support the company’s growth initiatives.


VMware posts Q2 revenue of $2.88 billion, up 9% yoy

VMware reported Q2 revenue of $2.88 billion, an increase of 9% from the second quarter of fiscal 2020. GAAP net income for the second quarter was $447 million, or $1.06 per diluted share, compared to $5.30 billion1, or $12.47 per diluted share, for the second quarter of fiscal 2020. Non-GAAP net income for the second quarter was $766 million, or $1.81 per diluted share, up 18% per diluted share compared to $650 million, or $1.53 per diluted share, for the second quarter of fiscal 2020.

“In light of these uncertain times, we delivered solid execution and financial performance in Q2 FY21,” said Pat Gelsinger, VMware CEO. “With our Any Cloud, Any Application, Any Device strategy, we are helping customers solve their hardest technology challenges and meet and exceed their business objectives.”

“Our performance in Q2 reflected strength in our Subscription and SaaS product offerings, which grew 44% year-over-year,” said Zane Rowe, executive vice president and CFO, VMware. “We plan to accelerate certain product initiatives through the remainder of the year, which will further support customers’ digital transformations and grow our Subscription and SaaS product offerings.”



  • The combination of subscription and SaaS and license revenue was $1.35 billion, an increase of 11% from the second quarter of fiscal 2020.
  • Subscription and SaaS revenue for the second quarter was $631 million, an increase of 44% year-over-year, representing 22% of total revenue.
  • The combination of subscription and SaaS and license revenue plus sequential change in unearned subscription and SaaS and license revenue grew 12% year-over-year.
  • VMware made available the second generation of VMware Cloud on Dell EMC, a VMware service that delivers simple, more secure and scalable infrastructure as-a-service to customers’ on-premises data center and edge locations.
  • Google Cloud announced the general availability of Google Cloud VMware Engine, an integrated first-party offering with end-to-end support to migrate and run the VMware environment in Google Cloud.
  • Microsoft previewed the next generation of Azure VMware Solution, a first-party solution designed, built and supported by Microsoft and endorsed by VMware.
  • VMware announced new capabilities designed to further improve the economic value of VMware Cloud on AWS while meeting an evolving set of requirements for application modernization, business continuity and resiliency, and cloud migration.
  • Oracle unveiled worldwide availability of Oracle Cloud VMware Solution, a dedicated, cloud-native VMware-based environment that enables enterprises to easily move their production VMware workloads to Oracle Cloud Infrastructure.
  • DISH has chosen VMware Telco Cloud to help deploy the world’s first 5G, cloud-native Open Radio Access Network. The platform will help bring to life the first network in the U.S. to combine the efficiency of the distributed telco cloud, public cloud and private cloud environments while delivering consistent, low-latency edge computing.
  • Intel and VMware announced they are collaborating on an integrated software platform for virtualized Radio Access Networks to accelerate the rollout of both existing LTE and future 5G networks.