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

Thursday, April 15, 2021

IPI Partners raises $3.8 billion in second fund for data centers

IPI Partners (IPI), a global investment platform focused exclusively on data centers and other technology and connectivity-related real assets,  announced the final closing of IPI Partners II at $3.8 billion. IPI said its second fund attracted demand well in excess of its target, reflecting strong support from a global institutional investor base. 

IPI II acquires, develops, leases, and operates data centers and related assets that serve the digital capacity needs of large, high-quality technology companies globally. Over the last four and a half years, IPI has built one of the world’s largest privately held data center portfolios with 480 megawatts leased and capacity for more than 880 megawatts. IPI II began investing in 2020, and most recently closed on the acquisition of SUPERNAP Italia, a Milan-based data center platform.

“Fundraising for IPI II has been a resounding success, and we are extremely grateful that our recent achievements and established market presence have earned the trust and confidence of a wide range of high quality, sophisticated investors,” said Matt A’Hearn, Partner at IPI. “The fund’s close comes at a truly ideal time, aligning with the large and growing opportunity we see at the core of our investment strategy.”

Monday, April 12, 2021

NVIDIA: Q1 revenue ahead of expectations

NVIDIA announced that first quarter revenue for fiscal 2022 is tracking above its previously provided outlook, with outperformance in each of its market platforms.

“While our fiscal 2022 first quarter is not yet complete, Q1 total revenue is tracking above the $5.30 billion outlook provided during our fiscal year-end earnings call. We are experiencing broad-based strength, with all our market platforms driving upside to our initial outlook,” said Colette Kress, executive vice president and chief financial officer of NVIDIA.

“Within Data Center we have good visibility, and we expect another strong year. Industries are increasingly using AI to improve their products and services. We expect this will lead to increased consumption of our platform through cloud service providers, resulting in more purchases as we go through the year. Our EGX platform has strong momentum, and we expect this will drive increased revenue from enterprise and edge computing deployments in the second half of the year.

“Overall demand remains very strong and continues to exceed supply while our channel inventories remain quite lean. We expect demand to continue to exceed supply for much of this year. We believe we will have sufficient supply to support sequential growth beyond Q1,” she continued.

Tuesday, March 16, 2021

ZTE posts 11.8% growth as infrastructure investments in China surge

 ZTE reported operating revenue of RMB101.45 billion (about US$15.6 billion) for 2020, representing a year-on-year increase of 11.8%. Net profit amounted to RMB4.26 billion, a year-on-year decrease of 17.3%, attributable mainly to the relatively substantial growth in net profit for 2019 comprising a one-off income before taxation of RMB2.66 billion from asset disposal during the third quarter of 2019. Basic earnings per share was RMB0.92.

In 2020, ZTE's operating revenue in both domestic and international markets increased year-on-year, with operating revenue in domestic and international markets increased by 16.9% to RMB68.05 billion and 2.7% to RMB33.40 billion respectively.  

In 2020, ZTE's operating revenue in both domestic and international markets increased year-on-year, with operating revenue in domestic and international markets increased by 16.9% to RMB68.05 billion and 2.7% to RMB33.40 billion respectively.  

Some highlights for 2020:

  • Year-on-year growth in all its three major businesses:  operator networks, government and enterprise services and consumer services grew by 11.2% to RMB74.02 billion, 23.1% to RMB11.27 billion and 7.8% to RMB16.16 billion respectively. 
  • Net cash flows from operating activities for 2020 rose to RMB10.23 billion, a year-on-year increase of 37.4%, setting a new record again. 
  • R&D spending amounted to RMB14.80 billion with a year-on-year growth of 17.9%, which was 14.6% as a percentage of operating revenue, 0.8 percentage point higher than that in 2019.

Thursday, March 4, 2021

Ciena posts Q1 revenue of $757 million, down 9% yoy

 Ciena reported revenue of $757.1 million for its fiscal first quarter ended January 30, 2021, down from $832.9 million for the fiscal first quarter 2020. Ciena's adjusted (non-GAAP) net income for the fiscal first quarter 2021 was $81.3 million, or $0.52 per diluted common share, which compares to an adjusted (non-GAAP) net income of $81.7 million, or $0.52 per diluted common share, for the fiscal first quarter 2020.

Some highlights

Q1 Revenue by geography

  • Americas $496.6 million, down from $574.0 million a year earlier
  • Europe, Middle East and Africa $155.4 million, up from $130.0 million a year earlier
  • Asia Pacific $105.1 million, up from $128.9 million a year earlier 

  • Non-telco represented 39% of total revenue
  • Direct web-scale increased 25% YoY, representing over 20% of total revenue
  • EMEA revenue increased 20% YoY, representing nearly 21% of total revenue
  • Blue Planet revenue increased 10% YoY, reaching over $16MA
  • GAAP R&D investment was over 17% of total revenue 
  • 627 100G+ total customers, which includes 39 new wins on WaveLogic Ai and 14 new wins on WaveLogic 5 Extreme
  • WL5e has now shipped to over 75 customers, all of whom are actively deploying the technology in their networks
  • No customer represented more than 10% of revenue for the fiscal quarter
  • Cash and investments totaled $1.3 billion
  • Headcount totaled 7,042

"We delivered solid revenue and profitability in the first fiscal quarter in the face of continued challenging market conditions and a dynamic industry environment," said Gary Smith, president and CEO of Ciena. "Our strong market position has enabled us to start the year largely as expected, and we are leveraging our innovation leadership and competitive advantage to deliver on our long-term growth opportunities."

Broadcom posts revenue of $6.6 billion, up 14% yoy

Broadcom posted revenue of $6,655 million for its first quarter of fiscal year 2021, up 14 percent from the prior year period. GAAP diluted EPS was $3.05 for the first quarter.

"We executed well during our first fiscal quarter driving 14% organic growth year on year," said Hock Tan, President and CEO of Broadcom Inc. "This growth reflects the critical role our technology franchises play in this environment of accelerated digital transformation."

"This quarter highlights the strength of our financial model with 14% year over year revenue growth translating to an increase in operating profit of 23%," said Kirsten Spears, CFO of Broadcom Inc. "We continue to deliver strong free cash flow, approximately $3 billion in the quarter, representing 35% growth on a year on year basis."

Thursday, February 4, 2021

CoreSite posts Q4 revenue of $155 million, up 6% yoy

CoreSite Realty reported Q4 2020 revenue of $154.9 million, an increase of 6.1% year over year. Net income of $0.46 per common diluted share, a decrease of $0.05 year over year.

CoreSite achieved new and expansion sales of almost $9.7 million of annualized GAAP rent for the quarter, which included $4.4 million of annualized GAAP rent from retail colocation leases, $3.7 million of annualized GAAP rent from small scale leases, and $1.5 million from large scale leases.

“We executed well on each of our 2020 priorities amidst the backdrop of the global pandemic,” said Paul Szurek, CoreSite’s President and Chief Executive Officer. “The pandemic created a challenging environment that forced the team to rethink prior practices, and I’m proud of our ability to adapt quickly while continuing to execute on each priority.”

Some key data center trends for CoreSite in Q4

  • Commenced 147 new and expansion leases for 109,154 NRSF, representing $20.4 million of annualized GAAP rent, for an average rate of $187 per square foot
  • Signed 151 new and expansion leases for 53,953 NRSF and $9.7 million of annualized GAAP rent, for an average rate of $180 per square foot
  • Renewed 260 leases for 121,420 NRSF and $15.8 million of annualized GAAP rent, for an average rate of $130 per square foot
  • Renewed leases reflected an increase of 1.0% in cash rent and 4.4% in GAAP rent, and churn was 5.4%

Sunday, January 31, 2021

Ericsson posts strong Q4 as 5G contracts grow to 127

Ericsson reported Q4 2020 sales of SEK 69.6 billion (approximately US$8.325 billion), up by 13% YoY mainly driven by sales in North East Asia, Europe and North America, when adjusted for comparable units and currency. Reported net income was SEK 7.2 (4.5) b.

Börje Ekholm, President and CEO of Ericsson, states "Our R&D investments have continued to drive both technology leadership and cost efficiency which have led to increased market share and improved financial performance. We are today a leader in 5G with 127 commercial contracts and 79 operating networks around the world. Organic sales grew by 5% for the full year. Our operating margin of 12.5% (5.0%) exceeded our 2020 target and reached the 2022 Group target range two years early."

Regarding Sweden and China, Ekholm states: "The Swedish telecom regulator’s decision to exclude Chinese vendors from 5G networks may create exposure for our operations in China. Our business in 180 markets today has been built on free trade and open, competitive markets. This has also ensured the development of a single global standard for mobile communication. It is critical that responses to the geopolitical situation safeguard the extraordinary value associated with those operating standards for 5G and beyond."

Some highlights:

Networks sales grew organically1 by 20%, reporting a gross margin of 43.5% (41.1%) for Q4. Ericsson saw continued high activity levels in North America and North East Asia.

Digital Services gross margin grew to 41.0% (38.1%) in Q4. From 2017 to 2020, gross margin excluding restructuring charges and items affecting comparability increased from 29% to 42%, as a result of streamlined product portfolio, fewer critical contracts, a growing portion of software sales and lower service delivery costs. The cloud-native 5G portfolio has a high win ratio and significant new customer contracts will start to generate revenues during the next 12-18 months. 

Managed Services delivered a gross margin of 17.7% (15.4%) in Q4. Sales declined on operator consolidation in the US during 2020. The full-year 2020 operating margin was 8.1% – above the 5%-8% target.

Emerging Business and Other sales are growing in enterprise offerings such as IoT Platforms, complemented by the acquisition of Cradlepoint. Gross margin improved to 33.8% (15.1%) driven by operational leverage from growth and lower cost as a result of the exited Edge Gravity business.

Speaking on CNBC, Ekholm said the company plans to increase its presence in the United States.

Thursday, January 28, 2021

Juniper posts revenue of $1.2 billion, routing sales grow

Juniper Networks reported net revenues of $1,222.6 million for the quarter ended December 31, 2020, an increase of 1% year-over-year, and an increase of 7% sequentially. Non-GAAP net income was $181.8 million, a decrease of 9% year-over-year, and an increase of 26% sequentially, resulting in non-GAAP diluted earnings per share of $0.55.

“We experienced better than expected Q4 demand and ended 2020 on a high note by delivering a second consecutive quarter of year-over-year revenue growth,” said Juniper’s CEO, Rami Rahim. “Despite the various challenges presented by the pandemic, we achieved many of the objectives we laid out earlier in the year, which included growing our enterprise business for a fourth consecutive year, growing our cloud business for a second consecutive year and stabilizing our service provider business. We believe these outcomes are a direct result of the strategic actions we have taken, which should position us for sustainable full-year revenue growth starting this year.”

“We executed well in the December quarter and were able to exceed our revenue and non-GAAP EPS targets,” said Juniper’s CFO, Ken Miller. “We are entering the new year with strong backlog and healthy momentum across each of our core industry verticals. We believe the investments we have made in 2020 to strengthen our technology portfolio and go-to-market organization will not only position us to deliver long-term growth, but also improved profitability over time.”

Some highlights:

Routing product revenue: $462 million, up 9% year-over-year and up 7% sequentially. The year-over year increase was driven by Enterprise and Cloud, partially offset by a decline in Service Provider. The sequential increase was primarily driven by Enterprise, and to a lesser extent, Cloud, offset by a decline in Service Provider. Both MX and PTX product families grew year-over-year and sequentially.

Switching product revenue: $261 million, down 2% year-over-year and up 14% sequentially. The yea rover-year decrease was driven by Cloud, partially offset by growth in Enterprise and Service Provider. The sequential increase was driven by all verticals. The QFX product family decreased year-over-year and grew sequentially. The EX product family grew year-over-year and sequentially.

Security product revenue: $87 million, down 14% year-over-year and up 19% sequentially. The yearover-year decrease was primarily due to Service Provider, and to a lesser extent, Cloud and Enterprise. The sequential increase was primarily driven by Enterprise.

Service revenue: $412 million, down 1% year-over-year and up 2% sequentially. The year-over-year decline and sequential increase was primarily driven by timing of renewals.

By vertical

Cloud: $281 million, slightly up year-over-year and up 11% sequentially. The slight year-over-year increase was driven by Routing and to a lesser extent, Services, offset by a decline in Switching and

Security. The sequential increase was primarily driven by Switching, and to a lesser extent, Services and Routing, partially offset by a decline in Security.

Service Provider: $475 million, down 4% year-over-year and essentially flat sequentially. The year-over year decrease was primarily due to Services. The sequential change was primarily due to a decline in Services, partially offset by growth in Switching and Security.

Enterprise: $467 million, up 7% year-over-year and up 14% sequentially. The year-over-year increase was primarily driven by Routing, and to a lesser extent, Switching and Services, partially offset by a decline in Security. The sequential increase was driven by all products and services.

Some other notes

  • Juniper cites progress on 400G, noting that it currently has more than 100 wins for 400G capable products.
  • Juniper said software accounted for 12% of total revenue in Q4, primarily driven by the adoption of Mist cloud and other software-based subscription offerings. The company expects software sales to continue to grow especially given its recent acquisitions of 128 Technology, Netrounds and Apstra.
  • In total, Mist wireless LAN, Wired Assurance, Marvis Virtual Network Assistant and Associated EX pull through generated over $150 million in 2020.'20-CFO-Commentary.pdf

Thursday, January 21, 2021

Intel posts Q4 revenue of $20 billion, exceeding guidance

Intel reported Q4 2020 revenue of $20.0 billion, exceeding October guidance by $2.6 billion and down 1 percent year-over-year (YoY). Full-year revenue set an all-time Intel record of $77.9 billion, up 8 percent YoY. Earnings per share (EPS) amounted to $1.42 ($1.52 on a non-GAAP basis, exceeding October guidance by 42 cents).

“We significantly exceeded our expectations for the quarter, capping off our fifth consecutive record year,” said Bob Swan, Intel CEO. “Demand for the computing performance Intel delivers remains very strong and our focus on growth opportunities is paying off. It has been an honor to lead this wonderful company, and I am proud of what we have achieved as a team. Intel is in a strong strategic and financial position as we make this leadership transition and take Intel to the next level.”

Q4'20 Business Highlights

  • Started production of 10nm-based 3rd Gen Intel Xeon Scalable processors (“Ice Lake”), ramping in Q1.
  • Launched 11th Gen Intel Core processors ("Tiger Lake"); announced 11th Gen Intel Core™ S-Series desktop processors ("Rocket Lake"), now shipping.
  • Entered discrete graphics market with Intel Iris Xe MAX graphics, Intel’s first Xe-based discrete GPU.
  • Announced Amazon Web Services selected Intel's Habana Gaudi AI processors for EC2 training.
  • Delivered gold release of Intel oneAPI developer toolkit.
  • Announced expanded network infrastructure solutions portfolio.
  • Introduced new Intel Optane SSD series and 3rd gen Intel Optane persistent memory “Crow Pass” for enterprise and cloud customers.

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.”

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.

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.”

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.

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.


  • 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.

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."