Tuesday, July 19, 2011

Qualcomm Posts Revenue of $3.62 billion, Raises Guidance

Qualcomm reported revenues of $3.62 billion for its third fiscal quarter ended June 26, 2011, up 34 percent year-over-year (y-o-y) and down 6 percent sequentially. Net income came in at $1.04 billion, up 35 percent y-o-y and 4 percent sequentially. Diluted earnings per share were $0.61, up 30 percent y-o-y and 3 percent sequentially.


"Qualcomm delivered strong year-over-year results again this quarter as our business performed well across all key guidance metrics. In addition, we successfully completed the acquisition of Atheros, positioning us to further expand our opportunities going forward," said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. "Looking forward, we continue to see healthy growth in CDMA-based device shipments of approximately 18 percent in calendar year 2011, and we are pleased to be raising our revenue and Non-GAAP earnings guidance for the fiscal year, driven primarily by strong global smartphone adoption and the addition of Atheros."


Some key metrics:

CDMA-based Mobile Station Modem (MSM) shipments: 120 million units, up 17 percent y-o-y and 2 percent sequentially.

March quarter total reported device sales: approximately $36.4 billion, up 44 percent y-o-y and down 9 percent sequentially.

March quarter estimated CDMA-based device shipments: approximately 170 to 174 million units, at an estimated average selling price of approximately $209 to $215 per unit.
http://www.qualcomm.com

Nakina Systems Raises Funding for Network Integrity

Nakina Systems, which specializes in carrier grade management and network integrity solutions, has closed a new financing round led by Vengrowth Asset Management and VIMAC Ventures LLC. Terms of the round were not disclosed.


The company said four of North America's five largest service providers are using its network integrity solution.


"This funding event is a great vote of confidence from our investor base regarding the company's strategy to establish and dominate the emerging Network Integrity segment of the operations support system market," said Jay Borden, Nakina CEO. "We have delivered ten consecutive quarters of year-on-year bookings growth. In this environment, that's not easy. The acceleration of our order volume, the new accounts that we have added, and the new channels that are representing Nakina around the globe all testify that the company is on solid footing and on the path to sustainable growth and profitability."http://www.nakinasystems.com
  • In May 2010, Nakina Systems, announced a global partnership agreement with Nokia Siemens Networks. Specifically, the Nakina Network Integrity product suite has been added to the Identity and Access Management offering of Nokia Siemens Networks to provide additional functionality that includes secure access, single sign on and security configuration audits. Both companies will support with these joint solutions their worldwide carrier customers.

Zarlink Declines New Acquisition Bid from Microsemi

Microsemi Corporation announced a bid to acquire all of the outstanding shares of Zarlink Semiconductor for CAD $3.35 per share in cash. The deal has a total equity value of USD $548.7 million based on a fully diluted share count and represents a 40 percent premium to Zarlink's share price as of July 19, 2011, and a 43 percent premium to Zarlink's trailing 30 day average share price. Microsemi said this CAD $3.35 proposal exceeds every Zarlink closing share price over the last five years.


For its part, Zarlink issued a statement declining the offer. Zarlink noted that it received two previous unsolicited, non-binding expressions of interest from Microsemi dated May 20, 2011 and June 17, 2011 for CAD$3.00 and CAD$3.25 per share. The Zarlink Board, with the assistance of RBC Capital Markets and Canaccord Genuity, declined both of these previous offers, concluding that the Microsemi proposals significantly undervalued Zarlink and its future prospects and were not in the best interests of its stakeholders. Zarlink said this new offer of $3.35 per share does not change the conclusion.
http://www.microsemi.com
http://www.zarlink.com

ZTE Plans 10 International Innovation Centers

ZTE announced plans to open 10 international innovation centers in partnership with several global telecommunications giants. The new innovation centers will be established in Europe and South America. The company also announced that it plans to establish additional innovation centers in China through partnerships with the nation's largest telecommunications operators.


"Because of the transformative shift in the industry, providers like ZTE must deeply understand and become involved in the business operations and demands of customers seamlessly and at a faster pace," said ZTE Executive Vice President Xie Daxiong. "The innovation centers under development by ZTE and its partners are a collective, proactive response to this change."http://www.zte.com.cn
  • In early July, ZTE signed a memorandum of understanding with Technical University Dresden with the purpose of opening a research and development center in Germany. In China, ZTE has established collaborative research institutes with four research institutes and 19 universities including Beijing University and Tsinghua University.

Key Senator Weighs in Against AT&T + T-Mobile Merger

Citing "substantial harm to competition and consumers," U.S. Senator Herb Kohl, chairman of the Senate Subcommittee on Antitrust, Competition Policy and Consumer Rights, announced his opposition to the proposed acquisition of T-Mobile by AT&T.


In an open, seven page letter to FCC Chairman Julius Genachowski and U.S. Attorney General Eric Holder, Kohl argues that the mega-merger would not be in the public interest and that it violates antitrust laws. Kohl's top concern is market concentration -- if the merger goes through, AT&T and Verizon Wireless would hold the vast majority of the subscribers, as well as control over the backhaul infrastructure needed by competitors entering the market.


In addition, Senator Kohl said he is not persuaded by the argument that T-Mobile lacks spectrum for 4G services, or that the merger would significantly improve access in rural areas.


Finally, he states that the merger would reverse the historic triumph three decades ago of breaking up the Bell System monopoly.http://kohl.senate.gov/ATT-TM%20LT%20to%20DOJ%20and%20FCC.pdf

Alcatel-Lucent Explores Options for Enterprise Business

Alcatel-Lucent is actively exploring strategic options for its Enterprise business. The company is holding meetings with employee representatives of its Enterprise business. No decision has been made on the options being explored and there is no certainty that this review will result in any change to the Alcatel-Lucent Enterprise business.
http://www.alcatel-lucent.com

Thrutu Enables Sharing Between iPhones and Androids


Thrutu, a division of Metaswitch Networks, released an iPhone version of its mobile communications app for in-call digital sharing.

The Thrutu app lets users share interactive content and media during a phone conversation, including photos, location on a map and contact information. Significantly, Thrutu users can share this interactivity across platforms, enabling iPhone users to share photos, location and contact info with Android users.


In addition to Android and iPhone, Thrutu is planning a BlackBerry release soon. The app is also available from Metaswitch as a branded application for carriers. Thrutu has racked up more than 250,000 Android downloads to date.


Thrutu is based in Palo Alto, California. http://www.thrutu.com http://www.metaswitch.com

Traffic Control Network Upgrades to Ethernet/Copper with Actelis

WYDOT, the Wyoming Department of Transportation, is using Actelis Networks' Intelligent Transportation Systems (ITS) networking solution to revamp the state capital's transportation network, which serves nearly 60,000 Cheyenne residents. Actelis'ML690 aggregation switches, ML622 and ML680 EADs were deployed across the city's copper network to provide real-time troubleshooting and monitoring capabilities.


Specifically, WYDOT is using Actelis' ITS solution to backhaul data from wireless vehicle detection systems. Pucks located on the ground transmit vehicle presence data wirelessly back to a receiver and then this data is transported by Actelis' ITS solution back to the Traffic Operations Center (TOC), where it is used to synchronize traffic lights and ensure the smooth flow of traffic.


The existing copper network is used to communicate with any traffic controller, at any intersection, from any location. Previously, WYDOT had been using 1,200 baud modems, radio systems and multiple protocols. The new network used Actelis' high-speed, Ethernet-based ITS solution.


"We took a giant step forward with Actelis' ITS solution," said Jerry Downs, State Electrical Engineer for Operations at WYDOT. "The number one goal was the ability to easily communicate with all of our traffic controllers, which enables us to improve the efficiency of how we move and monitor traffic throughout the city... We looked at fiber as an alternative solution, but with the results we observed with Actelis, a fiber-optic network could not be justified. With Actelis' ITS solution, I am getting the speeds and reliability I need, so why would I want to spend that kind of money on fiber? It just didn't make sense." http://www.actelis.com http://www.dot.state.wy.us/wydot/

Dell Acquisition of Force10 Provides Entry to Open Clouds for Data Centers

Dell agreed to acquire Force10 Networks with an aim of expanding its data center solutions portfolio. Financial terms were not disclosed.


Dell said its strategy over the past three years has been to develop an integrated stack of leading server, storage, networking and services resources. The vision calls for an orchestration of the underlying server, storage, and network resources in an open fashion, agnostic of whether they are physical or virtual, local or remote, Dell or ecosystem-provided. The acquisition of Force10 and investment in networking is seen as a natural complement to Dell's strength in the server market.


Force10, which is based in San Jose, California, is nearly a $200-million company, based on trailing 12 months revenue, with approximately 80 percent of its business in North America and operating in over 60 countries worldwide. Force10's Open Cloud Networking is based on open standards, automation and virtualization.


Dell said that like past acquisitions of Compellent and EqualLogic, it is committed to maintaining and growing Force10's channel program. Force10's customers include leading Web 2.0 and Fortune 100 companies, Internet portals, global carriers, leading research laboratories and government organizations with some of the world's most demanding network environments. http://www.dell.com http://www.force10networks.com

  • In April 2011, Force10 Networks introduced its Open Cloud Networking (OCN) vision for cloud and conventional data centers built on open architectures, open automation, and open ecosystems.



    Force10's OCN framework represents a new way to build, scale and manage data centers powered by a new family of centralized and distributed core switches, a top of rack (ToR) open cloud switch and automation software. The solutions address cloud, conventional, virtualized, and non-virtualized data centers.


    Three key elements of the OCN architecture include:


    Open Architecture – OCN enables standards-based open architectures that are interoperable with competitors offering customers a choice in how they build their core and top-of-rack elements in the data center. New building blocks for these open architectures include:




    • The new Z9000 distributed core switch, which enables highly scalable, leaf-and-spine data center architectures, is one of the smallest and least expensive core switches ever offered. Designed in a 2RU form factor, it delivers 128 10 GbE ports for 2.5 Tbps of switching capacity in 1/10 the space and with 1/20 the power consumption at 1/5 the price of competing products. The Z9000 switch will list for $175,000 and will be available for customer shipments in July 2011.


    • The new Z9512 is a centralized, chassis-based switch that delivers 9.6 Tbps of switching capacity in half a rack. For more conventional data center cores, Force10's new Z9512 is a chassis-based switch that offers 480 line-rate, non-blocking 10GbE ports, 96 line-rate, non-blocking 40 GbE ports, and 48 line-rate, non-blocking 100 GbE ports in a 19RU form factor. At 9.6 Tbps switching capacity and an initial 400 Gbps per-slot switching capacity (four times the slot capacity of other switches), sub-5 microsecond latency and an 8-Gigabyte packet buffer for each of its 12 line cards, the Z9512 delivers industry-leading performance in a centralized core switch. It could be used for centralized data center cores, aggregation of flat Layer 2 topologies, or aggregation of hierarchical Layer 3 topologies as well as for multi-service deployments incorporating Gigabit Ethernet, 10 GbE, 40 GbE, and 100 GbE. The Z9512 switch will be available in the second half of 2011 and pricing will be configuration dependent.


    • The S7000 Open Cloud Switch is a next-generation ToR device that incorporates 3-in-1 ToR convergence of switching, storage, and application processing capabilities. The switch has the ability to run third-party applications directly. It supports both Ethernet and storage traffic. It supports Data Center Bridging (DCB) and Fibre Channel over Ethernet (FCoE). The S7000 can be configured as an FCoE transit switch or FCOE gateway. The S7000 Open Cloud Switch will be available in the second half of 2011.


    • New FTOS advanced software features including TRILL (Transparent Interconnection of Lots of Links), DCB (Data Center Bridging), EVB (Ethernet Virtual Bridging), and VEPA (Virtual Ethernet Port Aggregation).


    Open Automation 2.0In Q3, Force10 plans to open the "ScriptStore", an online resource and forums that will allow users to purchase automation scripts and share techniques for automating Force10 products. In addition, Force10 has enhanced the Open Automation Framework with port profile support, EVB/VEPA, and HyperLinks.

    Open Ecosystems – partners in the compute, storage, applications and orchestration domains to ensure standards-based interoperability for its OCN solutions.


  • In 2009, Turin Networks merged with Force10 Networks. The deal combined leading equipment suppliers for the service provider and enterprise data center markets. Turin Networks was a leading provider in the wireless backhaul aggregation market with products deployed in more than 60 thousand North American cell sites. Force10 Networks offered high-performance equipment for data centers.

AT&T: Cloud Computing Significantly Cuts Energy Demand

Cloud computing can lead to immense energy saving for U.S., according to a new study by the Carbon Disclosure Project (CDP), "Cloud Computing: The IT Solution for the 21st Century," conducted by independent analyst research firm Verdantix and sponsored by AT&T. The researchers calculate that by 2020, large U.S. companies that use cloud computing can achieve annual energy savings of $12.3 billion and annual carbon reductions equivalent to 200 million barrels of oil.


Verdantix conducted in-depth interviews with multi-national firms—including Aviva, Boeing, Citigroup and Juniper Networks— in diverse sectors. All study participants had adopted cloud services for at least two years. Many of the firms interviewed reported cost savings as a primary motivator, with anticipated cost reductions as high as 40 – 50 percent.https://www.cdproject.net/en-US/WhatWeDo/Pages/Cloud-Computing.aspxhttp://www.att.com

Monday, July 18, 2011

Extreme Networks Ships Enterprise Access Switches

Extreme Networks introduced a new family of value-based Gigabit Ethernet access switches that deliver Layer 2 connectivity for enterprise networks. The new EAS family of Gigabit switches, available in 24-port models, feature standards-based PoE Plus, Quality of Service and critical support for devices that require a wired connection such as VoIP phones, security cameras, and WLAN access points. At the access layer, traffic from the EAS family of switches and Extreme Networks Altitude Wireless LAN access points is forwarded to the advanced ExtremeXOS edge, extending the benefits of sophisticated identity management for wired and wireless and complementing Extreme Networks end-to-end intelligence and automation portfolio. The 24 port non-PoE EAS-100 begins at U.S. list price $995, while the 24 port PoE+ EAS-200 begins at U.S. list price $1,995.
http://www.extremenetworks.com

China Unicom Expands 3G with Alcatel-Lucent

China Unicom has selected Alcatel-Lucent to expand its 3G network in over ten provinces to meet the rapidly rising demand for mobile broadband coverage in China. Under the agreement Alcatel-Lucent will expand the deployment of its GSM/W-CDMA solution in preparation for the future introduction of LTE. In more than ten provinces, Alcatel-Lucent will also provide optimization activities, allowing China Unicom the ability to monitor, troubleshoot and optimise network efficiency as subscribers increase, using a range of reporting capabilities, to ensure consistent quality for subscribers. Financial terms were not disclosed.


Alcatel-Lucent noted that its commercial W-CDMA contracts in the Asia-Pacific region also include Mobicom China, Celcom Malaysia, Telecom New Zealand, SK Telecom, South Korea and KT Corp, South Korea.
http://www.alcatel-lucent.com

Apple's Q2: 20.34 Million iPhones, up 142%

Apple sold 20.34 million iPhones in the quarter, representing 142 percent unit growth over the year-ago quarter, and 9.25 million iPads during the quarter, a 183 percent unit increase over the year-ago quarter.


Some notable iPhone stats:

  • iPhone sales for Q2 reached $13.3 billion, up $5.3 billion a year ago.


  • Sales in all regions are hot, especially Asia/Pac, where sales almost quadrupled in the quarter compared with a year ago.


  • The iPhone is now being sold by 228 carriers in 105 countries. This is up from 186 carriers offering the iPhone at the end of last quarter.


  • There are 5.9 million iPhones in the channel, representing about 4-6 weeks of inventory.


  • 91% of Fortune 500 firms are now accepting the iPhone for their corporate network.


  • There have now been 220 million cumulative iOS devices sold to date.


  • $1.4 billion in in iTunes sales in the quarter. There are 225 million iTunes accounts.
http://www.apple.com

Riverbed Posts Q2 Revenue of $170M, Sees Softness in EMEA

Riverbed Technology posted Q2'11 revenue of $170.3 million, up 35% compared to the second quarter of fiscal year 2010 (Q2'10). Net income (GAAP)was $11.3 million, or $0.07 per share. This compares to GAAP net income of $6.6 million, or $0.04 per diluted share, in Q2'10.


"Overall it was a solid second quarter, with sales in the U.S. increasing 50% over the prior year," said Jerry M. Kennelly, Riverbed® president and CEO.


"We experienced softness in the EMEA region, which we attribute to both the regional economy and our own execution. Looking ahead, we have confidence in our ability to improve our execution in this region with new EMEA sales leadership announced last week. Our top-line growth was led by a 38% year-over-year increase in product sales. Non-GAAP product gross margin reached an all-time high of 81.5%, and we achieved a record non-GAAP operating margin of 29.6%. Our competitive position is stronger than ever, our product portfolio is even more robust with the acquisitions announced today, and our market opportunity is growing. We expect a strong second half of 2011."http://www.riverbed.com

ADTRAN Cites Momentum for Total Access 5000 Platform

ADTRAN announced a number of significant milestones for its flagship Total Access 5000 platform:

  • The Total Access 5000 has seen a market share growth of 136 percent in 2010, the highest increase in the global market, according to market research firm Infonetics.


  • Total Access 5000 has now been adopted by every U.S. Tier 1 and Tier 2 service provider, as well as a growing number of global, regional and rural ILECs, CLECs and alternative carriers.


  • More U.S. Tier 3 and CLEC service providers have selected the Total Access 5000 for Fiber-to-the-Home (FTTH) deployments than any other platform since September of last year, according to Broadband Communities. This has enabled ADTRAN to take market share from incumbent vendors.


  • The Total Access 5000 is now deployed by carriers on six continents, making it one of the most widely accepted broadband access and transport platforms on the market.


"The Total Access 5000 differs from other access platforms in the industry because it has a proven ability to scale, both in terms of bandwidth capacity and application scope," said Kevin Schneider, CTO, ADTRAN. "This unique design enables service providers to quickly adapt to rapid changes in network capacity requirements, subscriber usage behavior and applications. It also provides the ability to quickly launch new best-in-class service offerings. The Total Access 5000 is commercially deployed to deliver 13 major service offerings today in optical, wireless and wireline applications. With a growing number of network options and industry architecture breakthroughs, the Total Access 5000 provides a means for service evolution for years to come."http://www.adtran.com

Infinera Sees Improved Bookings, Progress in 500Gbps PIC

Infinera reported Q2 GAAP revenues of $96.0 million compared to $92.9 million in the first quarter of 2011 and $111.4 million in the second quarter of 2010. GAAP net loss for the quarter was $24.2 million, or $(0.23) per share, compared to net loss of $16.4 million, or $(0.16) per share, in the first quarter of 2011 and net loss of $9.6 million, or $(0.10) per share, in the second quarter of 2010. The company's GAAP gross margin for the quarter was 39% compared to 46% in the first quarter of 2011 and 42% in the second quarter of 2010.


"We are encouraged by our second quarter performance, including an improvement in bookings momentum," said Tom Fallon, president and chief executive officer. "We saw a continuation of healthy tributary adapter module purchases by a broad base of customers looking to meet their current bandwidth growth needs. The MSO space—which we placed a strategic focus on several years ago—was especially strong with two customers from that category in our top 5 customer count. In addition, we saw growth in new optical capacity deployments by our customers, establishing a base for future TAM purchases."



"On the new product front, we made excellent progress in the development of our next-generation 500Gbs/s PIC solution which will support 100G transmissions and on our 40G product with FlexCoherent technology. During this period of significant product development investment and transition to new products, we remain focused on delivering on our PIC-based digital optical strategy and product roadmap in order to generate the revenue growth necessary to achieve our long-term business model objectives." http://www.infinera.com

GSA: Operators Moving Quickly to Implement Dual Cell HSPA+

There are now 39 dual carrier HSPA+ (DC-HSPA+) networks in commercial operation, an increase of 70% compared to the figure reported three months earlier, according to the latest figures from the Global mobile Suppliers Association (GSA). At least another 26 DC-HSPA+ networks are in deployment or planned.


DC-HSPA+ systems combine 64QAM modulation and double the bandwidth by using dual carriers (2 x 5 MHz = 10 MHz). This capability was introduced by 3GPP in the Release 8 specifications, and enables a theoretical peak downlink data throughput capability of 42 Mbps. For the uplink, using 16 QAM instead of QPSK modulation makes it possible to double the peak rate to 11.5 Mbps. DC-HSPA+ further extends the uplink performance up to 23 Mbps peak.


GSA also noted that there are now 410 commercial HSPA operators, confirming that every WCDMA operator worldwide has implemented and commercially launched HSPA on their networks.


Since its first commercial launch in February 2009, HSPA+ (HSPA Evolved) has become a mainstream technology. A total of 193 operators have committed to HSPA+ network deployments in 83 countries. 136 HSPA+ systems have been commercially launched in 69 countries, meaning that 1 in 3 HSPA operators have now deployed HSPA+ on their networks.


HSPA and HSPA+ deployments status - global:



  • 446 HSPA operator commitments in 170 countries

  • 410 commercial HSPA operators in 162 countries

  • Includes 136 commercial HSPA Evolution (HSPA+) networks launched in 69 countries

  • 33% of HSPA operators have commercially launched HSPA+

  • 89 commercial HSPA+ networks support a peak downlink data speed of 21 Mbps

  • 8 commercial HSPA+ networks support a peak downlink data speed of 28 Mbps

  • 39 commercial networks support DC-HSPA+ for a peak downlink data speed of 42 Mbps

  • Uplink speeds also increasing: 40% of HSPA operators have launched HSUPA

  • At least 92 HSUPA networks (over 55%) support 5.8 Mbps peak uplink data speed; another 9 networks support 11.5 Mbps peak.


GSA has raised its market outlook and forecasts there will be at least 170 commercial HSPA+ systems in operation by end of 2011 (from 136 today). http://www.gsacom.com

Telefónica Brazil Expands Managed Services Deal with Ericsson

Ericsson won a contract with Telefónica Brazil to provide managed services for field maintenance in São Paulo.


Ericsson will provide a range of field operations services, supervising and maintaining Telefónica's fixed network within the following areas in São Paulo city: Campo Limpo, Campo Belo, Jabaquara, Consolação and Ipiranga. The managed services will be provided in a multi-vendor environment.


This new contract is an expansion of Ericsson existing managed services contract. In 2008, Ericsson and Telefónica Brazil entered into an agreement for field maintenance of the operator's fiber network in São Paulo state.
http://www.ericsson.com

See also