Wednesday, July 23, 2008

Thomson Appoints Alcatel-Lucent Exec as CEO

Thomson announced the appointment of Frédéric Rose as its new CEO. He will also join the Board of Directors.

Prior to joining Thomson, Mr Rose has been President of Alcatel-Lucent's Europe, Asia and Africa Region and a member of Alcatel-Lucent's Executive Committee. Prior to that, he was President of Alcatel-Lucent's Asia Pacific region, Mr. Rose managed a diverse team of 15,000 staff operating across 18 countries and led the region to achieve double-digit growth during his tenure. He also held the position of President of Alcatel Shanghai Bell.

NextWave to Sell Some AWS Spectrum for $150 Million

NextWave Wireless signed agreements with four parties to sell a portion of its AWS license portfolio, representing 63% of its total AWS MHz-pops, for a total of $150.1 million.

The agreements call for NextWave to sell 599 million MHz-pops of AWS spectrum at an average price of $0.25 per MHz-pop.

NextWave said its cost basis for the licenses being sold is $75.2 million or $0.126 cents per MHz-pop.

NextWave's remaining U.S. spectrum assets include 2.8 billion MHz-pops of 2.3 GHz WCS spectrum, 972 million MHz-pops of 2.5 GHz BRS/EBS spectrum, and 348 million MHz pops of AWS spectrum. In addition the company has 5.9 billion MHz-pops of spectrum in Europe, Canada, and South America.
  • In July 2008, NextWave Wireless signed agreements with four parties to sell a portion of its AWS license portfolio, representing 63% of its total AWS MHz-pops, for a total of $150.1 million.

    The agreements call for NextWave to sell 599 million MHz-pops of AWS spectrum at an average price of $0.25 per MHz-pop.

    NextWave said its cost basis for the licenses being sold is $75.2 million or $0.126 cents per MHz-pop.

    NextWave's remaining U.S. spectrum assets include 2.8 billion MHz-pops of 2.3 GHz WCS spectrum, 972 million MHz-pops of 2.5 GHz BRS/EBS spectrum, and 348 million MHz pops of AWS spectrum. In addition the company has 5.9 billion MHz-pops of spectrum in Europe, Canada, and South America.

  • In April 2008, NextWave announced that it had retained Deutsche Bank and UBS Investment Bank to sell its U.S. spectrum assets. The company has also retained Canaccord Adams to sell its Canadian spectrum assets.

  • Also in April, NextWave Wireless announced its NW2000 Wave 2-ready family of second-generation mobile WiMAX chipsets designed for high-volume, small form-factor wireless broadband subscriber stations, including CPE modems, PC card modems, laptops, multimode/smartphone handsets and mobile multimedia terminals.

Deutsche Telekom Activates Ericsson's 40 Gbps DWDM

Deutsche Telekom has commercially started Ericsson's Marconi MHL 3000 multihaul WDM solution in its German core network. This step follows in-depth testing, optimization and systems integration. Ericsson's Marconi MHL 3000 MultiHaul WDM platform is now deployed nationwide with 40 Gbps functionality. Financial terms were not disclosed.

Ericsson has been one of Deutsche Telekom's suppliers of WDM equipment since 2005.

Ericsson said its Marconi MHL 3000 solution enables Deutsche Telekom to implement a highly efficient IP network with 40 Gbps connections on the existing ROADM infrastructure. The platform can deliver up to 80 channels. Different modulation formats are used to provide the optimum cost performance depending upon the network application.

Juniper Appoints Kevin Johnson as CEO

Juniper Network appointed Kevin Johnson as its new CEO, replacing Scott Kriens who will continue as chairman of the board and will remain active in the areas of strategy and leadership development.

Johnson joins Juniper Networks from Microsoft, where he served in a range of strategic executive assignments over the course of his 16-year tenure, most recently as president of the Platforms and Services Division. Under his leadership, the division achieved record breaking results with over $20 billion in revenue in fiscal year 2008. In addition to leading the Windows business, Mr. Johnson focused on building Microsoft's position as a leader in online advertising and evolving its "software + services" strategy.

"The Juniper team has been at the heart of the success we have realized since the founding of the company in 1996, and Scott has been at the center of that team with me since those early days," commented Pradeep Sindhu, founder and chief technology officer of Juniper Networks.

Ixia Reports Q2 Revenue of $45.9 Million, Record Bookings

Ixia posted Q2 revenues of $45.9 million, which compares to $41.7 million in the immediately preceding first quarter of 2008 and $43.0 million in the second quarter of 2007. Net income (GAAP) was $1.8 million, or $0.03 per diluted share, compared to net income of $1.4 million, or $0.02 per diluted share, for the second quarter of 2007.

"We are very pleased with our second quarter results, especially given the ongoing uncertainty with the economy. We achieved record bookings this quarter, driven by our worldwide accounts as we continued to diversify and grow our customer base. We increased bookings over the first quarter in all of our major geographic regions and customer segments due in part to the recent investments we have made in our sales and marketing teams," commented Atul Bhatnagar, Ixia's President and Chief Executive Officer.

Telefónica Selects Ericsson as Prime Integrator for Latin America

Telefónica's has selected Ericsson to serve as its prime network integrator for its fixed and mobile operations across Latin America. Under the agreement, Ericsson will provide business consulting services including financial-risk evaluation and revenue assurance life-cycle management, supported by technical analysis. Ericsson will also provide systems integration services such as design, adaptation and integration of customized Revenue Assurance solutions for Telefónica's Latin American operations. Financial terms were not disclosed.

Ericsson said its services will enable Telefónica to gain greater control of its operations and prevent the recurrence of inconsistencies that adversely affect revenue.

Qualcomm Reports Revenues $2.8 Billion, up 19% YoY

Qualcomm reported quarterly revenue of $2.8 billion, up 19 percent year-over-year and 6 percent sequentially. Net income reached $748 million, down 6 percent year-over-year and 2 percent sequentially. Diluted earnings per share came in at $0.45, down 4 percent year-over-year and sequentially.

The company held cash, cash equivalents and marketable securities of approximately $11.2 billion at the end of the third quarter.

"We are pleased to report another strong quarter as the migration to 3G-enabled products continues to accelerate," said Dr. Paul E. Jacobs, chief executive officer of Qualcomm. "We delivered record revenues, up 19 percent year-over-year, and our pro forma earnings per share were at the high end of our prior estimate.

Nokia and Qualcomm Reach Agreement, Settle All Litigation

Nokia and Qualcomm reached an agreement covering various standards including GSM, EDGE, CDMA, WCDMA, HSDPA, OFDM, WiMAX, LTE and other technologies. The agreement will result in settlement of all litigation between the companies, including the withdrawal by Nokia of its complaint to the European Commission.

Under the terms of the new 15 year agreement, Nokia has been granted a license under all Qualcomm's patents for use in Nokia's mobile devices and Nokia Siemens Networks infrastructure equipment.

Further, Nokia has agreed not to use any of its patents directly against Qualcomm, enabling Qualcomm to integrate Nokia's technology into Qualcomm's chipsets.

The financial structure of the settlement includes an up-front payment and on-going royalties payable to Qualcomm. Nokia has agreed to assign ownership of a number of patents to Qualcomm, including patents declared as essential to WCDMA, GSM and OFDMA. The specific terms are confidential.

"We believe that this agreement is positive for the industry, enabling the market to benefit from innovation and new technologies," said Olli-Pekka Kallasvuo, CEO of Nokia Corporation. "The positive financial impact of this agreement is within Nokia's original expectations and fully reflects our leading intellectual property and market positions."

Separately, Qualcomm issued a statement raising its fiscal 2008 revenue and earnings guidance. Qualcomm now anticipates its Q4 revenues to be approximately $2.5 to $2.7 billion, with pro forma diluted earnings per share (EPS) to be approximately $0.49 to $0.51. The company anticipates the shipment of approximately 84 to 87 million Mobile Station Modem (MSM) chips during the quarter, compared to approximately 68 million MSM chips shipped during the year ago quarter. We estimate June quarter shipments of approximately 114 to 118 million CDMA devices (CDMA2000 and WCDMA) at an estimated average selling price of approximately $215 per unit. Approximately 89 million CDMA devices were shipped in the year ago quarter.

"Global demand for 3G continues at a rapid pace as consumers, operators and manufacturers benefit from a wide variety of competitively priced, feature-rich devices," said Dr. Paul E. Jacobs, chief executive officer of Qualcomm. "In calendar year 2008, we continue to see approximately 30 percent year-over-year growth for CDMA-based device shipments. The fundamental drivers of our business remain strong, and we are raising our fiscal 2008 revenue and earnings per share estimates."

Level 3 Reports Communications Services Growth of 9% YoY

Level 3 Communications reported Q2 consolidated revenue was $1.09 billion for the second quarter 2008, an increase of 4 percent compared to $1.05 billion for the second quarter 2007. First quarter 2008 consolidated revenue was $1.09 billion. The net loss for the second quarter 2008 was $33 million, or $0.02 per share, including a $96 million, or $.06 per share gain on the sale of the company's Vyvx advertising distribution business.

Core Communications Services revenue, which includes Core Network Services and Wholesale Voice Services, was $972 million in the second quarter 2008, an increase of 9 percent over $888 million in the second quarter 2007.

"Our strong second quarter results reflect Core Network Services growth and our continued focus on reducing network costs and operating expenses," said James Crowe, president and CEO of Level 3. "We generated positive Free Cash Flow and now expect to be Free Cash Flow positive for the remainder of the year. And as previously announced, we expect to be Free Cash Flow positive for the full year 2009."11 million.

Juniper Posts Q2 Revenue of $879 Million, Up 32% YoY

Juniper Networks reported Q2 revenue of $879.0 million, up 32% from Q2 2007, and GAAP net income of $120.4 million, or $0.22 per diluted share. Juniper's operating margin for the second quarter of 2008 rose to 18.3% on a GAAP basis from 13.0% in the same quarter a year ago. Non-GAAP operating margin for the second quarter of 2008 rose to 23.6% from 20.4% in the second quarter of 2007.

'We're very pleased with the solid results we have delivered for the first half of 2008,' stated Scott Kriens, chairman and chief executive officer, Juniper Networks, Inc. 'This is a testament to the strength of our product cycles, the power of our portfolio strategy and the expanded opportunities made possible by the early success of the EX-series, which together serve to underscore our improved outlook for the second half of the year.'

Microsoft to Acquire DATAllegro for Data Warehousing Appliance

Microsoft agreed to acquire DATAllegro, a supplier of data warehouse appliances, for an undisclosed sum.

DATAllegro has specialized in large-volume, high-performance data warehouse appliance installations that boast some of the largest data volume capacities in the industry -- up to hundreds of terabytes on a single system. DATAllegro clients span such markets as retail, telecommunications and manufacturing. The company is based in Aliso Viejo, California.

Microsoft said it is focused on delivering not just a database, but a data platform. A leader in data warehousing and business intelligence (BI), Microsoft SQL Server includes comprehensive, tightly integrated functionality for data management as well as advanced BI out of the box. SQL Server delivers on Microsoft's vision for pervasive BI by providing capabilities for large-scale data warehousing, rich interoperability with Microsoft Office, and enhanced functionality for Microsoft's BI solutions. SQL Server is a key element of the broader Microsoft Application Platform, a portfolio of technology capabilities and core products that help organizations develop, deploy and manage dynamic applications and IT infrastructure.

"Microsoft SQL Server 2008 delivers enterprise-class capabilities in business intelligence and data warehousing, and the addition of the DATAllegro team and its technology will take our data platform to the highest scale of data warehousing," said Ted Kummert, corporate vice president of the Data and Storage Platform Division at Microsoft.http://www.datallegro.com
  • In May 2008, DATAllegro announced the closing of its “Series D�? round of funding totaling $19.6 million. The round was led by an affiliate of the Hillman Company. All other venture capital groups from previous rounds of funding, including Adams Capital Management, Focus Ventures, Intel Capital, JAFCO Ventures, Palomar Ventures and Venrock Associates, met or exceeded their pro rata.

Tuesday, July 22, 2008

Cisco to Acquire Pure Networks for Home Network Mgt Software

Cisco agreed to acquire Pure Networks, a Seattle-based start-up specializing in home networking-management software, for approximately $120 million.

Pure Networks' home networking-management solution allows users to easily set up and manage a home network and connect a range of devices, applications and services within a home. Pure Networks currently partners with Cisco to provide the software infrastructure and tools used to create the Linksys Easy Link Advisor (LELA) which allows a consumer to more easily set up, organize, manage, secure and use a home network.

Following the acquisition, Pure Networks' employees will remain in Seattle and be integrated into Linksy.

Cisco said the acquisition reflects its "build, buy, and partner" strategy to expand existing product categories and enter new markets.

AT&T Sees Revenue Growth in Wireless, Decline in Wireline

Driven by continued 15.8% wireless revenue growth, AT&T reported consolidated Q2 revenues of $30.9 billion, up 4.7 percent versus reported results in the year-earlier quarter and up 3.6 percent compared with second-quarter 2007 pro forma revenues. Q2 net income totaled $3.8 billion, up from $2.9 billion in the year-earlier quarter, and reported earnings per diluted share totaled $0.63, up from $0.47 in the second quarter of 2007.

Some highlights for Q2:


  • AT&T ended the quarter with 72.9 million wireless subscribers.

  • Total wireless revenues increased 15.8 percent to $12.0 billion in the second quarter, and wireless service revenues, which exclude handset and accessory sales, grew 14.8 percent to $11.0 billion.

  • Retail postpaid subscriber ARPU (average monthly revenues per subscriber) was up 3.5 percent versus the year-earlier second quarter.

  • Wireless data revenues grew 52.0 percent versus the year-earlier quarter to $2.5 billion.

  • Data now represents 22.9 percent of AT&T's total wireless service revenues, up from 17.3 percent in the
    second quarter of 2007.

  • Text messaging volumes tripled versus totals for the year-earlier quarter, and multimedia message volumes increased more than 170 percent.

  • At the end of the second quarter, approximately 18 percent of AT&T's postpaid wireless subscribers had an integrated device, up from 8 percent one year earlier.

  • AT&T's second-quarter net gain in total wireless subscribers exceeded 1.3 million, down 123,000 versus results in the second quarter of 2007 and up 38,000 compared with the first quarter of this year.

  • Retail postpaid net adds totaled 894,000, down 2.0 percent versus the year-earlier second quarter and up 26.8 percent from results in the first quarter of this year.


  • Second-quarter revenues in AT&T's wireline segment totaled $17.6 billion versus $18.0 billion in the year-earlier quarter.

  • Reflecting solid demand from wireless carriers, Internet service providers, content providers and other customers, total wholesale revenues were $3.5 billion, down just 0.2 percent versus the year-earlier quarter. AT&T said this represents a major step up from a year-over-year decline of 8.3 percent in the second quarter of 2007 and marks the company's second consecutive quarter of sequential revenue growth in this category.

  • Total enterprise revenues in the second quarter were $4.7 billion, down 1.0 percent versus results for the year-earlier quarter, and enterprise service revenues, which exclude CPE sales, were down 0.1 percent. Enterprise fundamentals in terms of closed sales, a strong sales funnel and new service adoption remain solid. AT&T expects to deliver positive growth in total enterprise revenues for the full year 2008.

  • AT&T's total regional business revenues increased 1.6 percent in the second quarter to $3.2 billion. Regional business data revenues grew 5.2 percent, led by robust growth in Ethernet services and 13.7 percent growth in IP data services, including double-digit gains in managed Internet, VPN and hosting services.

  • Data growth was led by a 16.1 percent increase in revenues from IP-based services, with continued gains in high speed Internet, managed Internet, VPN and hosting services.

  • Data transport service revenues increased 1.1 percent, and packet switched data revenues, which include Frame Relay and ATM services, were down 13.5 percent.

  • AT&T U-verse TV Services experienced a net subscriber gain of 170,000 to reaching 549,000 in service.

  • U-verse network deployment is on schedule, install times continue to decline and the attach rates for broadband service continue to be high. The company is on a trajectory to reach its target of more than 1 million AT&T U-verse TV subscribers by year-end 2008.

  • Regional consumer IP revenues, which combine revenues from broadband and AT&T U-verse services, grew 19.3 percent versus the year-earlier quarter, and revenues per consumer household served increased 4.2 percent.

  • Total regional consumer revenues were $5.6 billion, down 2.1 percent versus the year-earlier quarter and down 0.7 percent sequentially. In addition to operational trends, these comparisons also reflect a change in AT&T's relationship with Yahoo! Inc., which provides portal services to AT&T's more than 14 million wireline broadband subscribers. Under the new arrangement, AT&T no longer pays monthly portal fees and receives a reduced level of shared advertising revenues from Yahoo!

  • Regional consumer revenue connections (retail voice, high speed Internet and video) totaled 48.4 million at the end of the quarter, versus 49.5 million at the end of the second quarter of 2007 and 49.3 million at the end of the first quarter of 2008.

  • Total consumer broadband and TV connections over the past year increased by 2.2 million. At the end of the second quarter, AT&T had 14.7 million total broadband connections, up 1.4 million over the past year and up 46,000 in the second quarter of 2008.

NEC Partners with Motive on Femtocells

NEC Europe is partnering with Motive on femtocells. The partnership will see Motive's service management software integrated into NEC's Femtocell Access Point Management System. NEC said its Access Point Management system is under trials with several operators around the world.

Equinix Reports Q2 Revenue of $172 Million, up 9% YoY

Equinix reported Q2 revenue of $172.0 million, a 9% increase over the previous quarter and an 87% increase over the same quarter last year. Net income for the second quarter was $2.2 million compared to net income of $5.4 million in the previous quarter and net income of $1.2 million in the same quarter last year. This reflects a negative $3.0 million quarter-over-quarter fluctuation related to foreign exchange, and a specific $3.1 million increase in stock-based compensation expense related to the executive change in our European operations.

During the quarter, Equinix completed on-schedule expansions in the London, Paris, Silicon Valley and Washington D.C. markets, adding approximately 2,750 cabinet equivalents in the U.S., and 2,600 cabinet equivalents in Europe.

F5 Networks Introduces Entry Level BIG-IP Application Delivery Controller

F5 Networks introduced entry-level versions of its flagship BIG-IP Application Delivery Controller platform aimed at the enterprise market. The BIG-IP 1600 and 3600 devices have dual-core processors and use F5's Clustered Multiprocessing (CMP) technology. Highlights include:

  • Fast Cache, IPv6 Gateway, Rate Shaping, SSL Offload, and Compression

  • Advanced security and acceleration -- The 3600 platform is able to run BIG-IP Application Security Manager (ASM) or WebAccelerator as a module on BIG-IP Local Traffic Manager (LTM).

  • Integrated basic protocol security option -- Both new platforms are able to run the new BIG-IP Protocol Security Module (PSM).

F5 Posts Quarterly Revenue of $166 Million, up 25% YoY

F5 Networks posted quarterly revenue of $165.6 million, up 4 percent from $159.1 million in the prior quarter and 25 percent from $132.4 million in the same period last year. GAAP net income was $19.1 million ($0.23 per diluted share), compared to $17.7 million ($0.21 per diluted share) in the prior quarter and $21.8 million ($0.26 per diluted share) in the period a year ago.

"As we anticipated, our chassis-based VIPRION controller was a key driver of product revenue growth. Sales of VIPRION were especially robust among large Internet content and service providers, and we continue to see strong demand heading into the close of fiscal 2008," said John McAdam, F5 president and chief executive officer.

Sprint to Sell 3,300 Towers to TowerCo for $670 million in Cash

Sprint Nextel agreed to sell approximately 3,300 towers to TowerCo for approximately $670 million in cash. The specific number of towers and final purchase price will be determined at closing. The companies said the towers are located in prime metropolitan locations. The deal is expected to close in 90 days.

The two companies also signed a long term leasing agreement where TowerCo will provide Sprint Nextel with wireless communications towers to support the company's CDMA, iDEN and WiMAX networks.

"By leasing rather than owning these network facilities, we can better focus on our core business of providing communications services to consumers, businesses and government customers," said Bob Azzi, senior vice president, Field Engineering and Operations, Sprint Nextel. "Significantly, this transaction provides Sprint Nextel with additional liquidity which gives us greater flexibility in managing our company."

  • TowerCo was founded in 2004 by Tailwind Capital and industry veterans Richard Byrne, Chief Executive Officer, and Scot Lloyd, Chief Operating Officer. Soros Strategic Partners invested in TowerCo in December 2005.

Netgear Reports Q2 Revenue of $204.5 million, up 24% YoY

NETGEAR posted Q2 net revenue of $204.5 million, a 24% increase as compared to $164.3 million for the second quarter ended July 1, 2007, and a 3% increase as compared to $198.2 million in the first quarter ended March 30, 2008. Q2 net income (GAAP) was $11.1 million, or $0.31 per diluted share. This compared to net income of $6.1 million for the second quarter of 2007 and to net income of $11.2 million in the first quarter of 2008. Diluted earnings per share, computed in accordance with GAAP, was $0.17 for the second quarter of 2007 and $0.31 for the first quarter of 2008.

During Q2, NETGEAR's service provider net revenue was approximately $55 million, about 27% of total net revenue, as compared to 24% in the year ago quarter, and 28% in the first quarter of 2008. In Q2, the company added TV Cabo in Portugal and Cablemas in Mexico to its service provider customer list.

"Despite a challenging market and economic environment in the U.S. and U.K., we enjoyed very healthy year on year revenue growth due to a strong performance in Asia Pacific and the successful launch of NETGEAR products in Wal-Mart stores in the U.S. However, we continue to foresee market weakness in both the U.S. and U.K. in the coming quarters. Our operating margin improved in Q2 due to successful product and operating cost reductions, strong sales of ReadyNAS and Smart Switches and the reduction in air freight costs with an increase in our on hand inventory. Looking forward, we believe continuous emphasis in R&D resulting in differentiated new products and efficient supply chain management will enable us to win in competitive and challenging market conditions," stated Patrick Lo, Chairman and Chief Executive Officer of NETGEAR.

Verizon Selects New Home Gateways from Westell, Actiontec

Verizon has selected two home gateways from Westell and Actiontec for use with its FiOS service. The new broadband routers, designed to Verizon's specifications by Actiontec and Westell, will use MoCA 1.1 technology to boost in-home speeds over coaxial cable to up to 175 Mbps from 75 Mbps and allow operation of multiple simultaneous Wi-Fi networks. For example, customers will be able to modify security settings on each network, allowing a Wi-Fi network for guests and visitors, one with parental controls for young users, one for computers holding secure documents, or one for teleworking only. The new routers will be ready for deployment in the third quarter. Financial terms were not disclosed.

The new equipment includes the MI424-WR by Actiontec and the UltraLine Series 3 model 9100 by Westell, both custom-built for FiOS to Verizon specifications. Both vendors have supported other Verizon broadband services with modems, gateways and routers designed for Verizon.

Verizon said key design features of the new routers include:

  • Higher bandwidth, offering 175 Mbps total data flow in the home.

  • Support for up to four Wi-Fi networks, enabling more than one Wi-Fi network to operate simultaneously within the home.

  • Quality of service controls to give traffic preference to critical services like voice or security devices.

  • Remote management of Verizon devices and services beyond the router by Verizon technicians, improving the service and support experience for customers.

  • Integrated dual-core processor to allow simultaneous networked data services, possibly including home security, home monitoring, network security and other applications.

  • Support for media sharing between home devices, such as between TVs and PCs, media servers, and other consumer electronics, using DLNA and Universal Plug and Play standards now being adopted by hardware manufacturers to support connectivity and service integration.

  • USB expandability for shared storage servers, printers, peripherals and other devices

  • In addition, the MoCA 1.1 distribution technology increases to 15 from seven the number of set-top boxes or other devices that can operate simultaneously on the coax portion of the FiOS home network.