Monday, August 1, 2011

Cavium Posts Sales of $71 million, up 13% Sequentially

Cavium reported Q2 revenue of $71.6 million, a 12.7% sequential increase from the $63.6 million reported for the first quarter of 2011 and an increase of 43.7% from the $49.9 million reported for the second quarter of last year. Net income (GAAP) was $1.9 million, or $0.04 per diluted share, compared to net income of $1.5 million, or $0.03 per diluted share in the first quarter of 2011, and a net income of $0.6 million, or $0.01 per diluted share in the second quarter of last year. Gross margins were 59.9% in the second quarter of 2011 compared to 60.9% in the first quarter of 2011 and 60.8% in the second quarter of last year.

"This was our ninth quarter of sequential sales growth, driven by strong organic growth in our core enterprise and service provider as well as our broadband and consumer business. We generated record quarterly sales, strong non-GAAP gross and operating margins, and record non-GAAP net income during the quarter. Furthermore, our multi-core and other products continue to take market share as we experience record design win momentum among Tier-1 customers across our entire family of products" said Syed Ali, president and CEO of Cavium.

MetroPCS Plunges 35% Following Q2 Earnings

Shares in MetroPCS fell 36% on Tuesday following the release of its Q2 financial report in which the company disclosed weaker than expected subscriber growth, higher CAPEX and the possibility of purchasing additional spectrum for its LTE network.

Consolidated service revenues were $1.1 billion for the second quarter of 2011, an increase of $191 million, or 21%, when compared to the prior year's second quarter. Income from operations increased approximately $12 million, or approximately 6%, for the second quarter of 2011 when compared to the prior year's second quarter.
Net income for the quarter was $84 million and includes approximately $6 million in charges related to the extinguishment of the Tranche B-1 Term Loans under the company's Senior Secured Credit Facility during the quarter.

"We are pleased with our solid second quarter results in this seasonally slow quarter and with our continued strong sales of Android Smartphones. Momentum for no annual contract mobile broadband wireless service continues to be strong and has resulted in 19% year over year subscriber growth. Financially, we reported the highest Adjusted EBITDA in company history of $357 million, up approximately 11% from last year's second quarter," stated said Roger D. Linquist, Chairman and Chief Executive Officer of MetroPCS.

Some highlights for the quarter.

MetroPCS now serves approximately 9.1 million subscribers, up 19% from a year ago. In the first 6 months of 2011, the company added 925,000 subscribers. The company has not given a breakdown of LTE subscribers vs. CDMA subscribers.

Demand for Android Smartphones and has been strong. In the first quarter, approximately 30% of all handset sales were Androids. In the second quarter, nearly 40% of all handset sales were Androids.

MetroPCS is focused on efficiently adding data capacity to its CDMA network based on growing smartphone demand, and equally important, managing data traffic where possible by compressing and optimizing throughput.

An expansion of the LTE network is ongoing.

The company hops to begin introducing VOLTE-capable handsets early next year to move voice as well as data traffic to the new LTE network.

Q2 net subscriber additions were 199,000.

Continued economic pressure on customers has led to an increase in churn, which was 3.9% for the quarter. The increase in churn was primarily driven by an increase in gross additions.

ARPU was $40.49, up $0.65 on a year-over-year basis, and up $0.07 on a sequential basis.

2011 capital expenditures are now forecast to be $900 million to $1 billion -- an increase over the guidance given on the first quarter of 2011 earnings call . The company cited additional CDMA and LTE investments, including microwave backhaul systems for the LTE buildout.

The company also danced around the question of future spectrum purchases or wholesale leases, saying only that no decision has been made.

Sprint Announces Wholesale 4G

Sprint began providing wholesale access to its 4G (WiMAX) network, making it the first national scale wireless carrier in the U.S. to provide a wholesale 4G offering. Available immediately for Sprint's Wholesale customers are the Sierra Wireless 250U 3G/4G data card and HTC Detail 3G/4G handset, which has the same feature set as HTC EVO Shift 4G.

Tekelec Appoints CTO

Tekelec appointed Douglas A. Suriano as chief technology officer (CTO). He will retain his current responsibilities as vice president of engineering, which he has held since joining Tekelec in 2003. In his eight-year tenure, he and his team have developed Tekelec's next-generation mobile broadband portfolio through organic growth and strategic acquisitions, while expanding market share of its voice and text solutions.

Suriano joined Tekelec from dynamicsoft, Inc., where he was vice president of engineering, overseeing development of SIP products for service providers in the early adoption phase of advanced IP-based services. Prior to dynamicsoft, he served as chief information officer for QAD Inc., an enterprise resource planning software developer, responsible for the company's global IT infrastructure, business systems and development support. Mr. Suriano began his technology career as a director of information systems for the United States Marine Corps.

NeoPhotonics Samples Extended Reach OLT Transceivers

NeoPhotonics has begun sampling its first extended reach "XG PON1" transceiver module for 10G PON applications in an XFP form factor. The new pluggable transceiver increases the link budget from 29 dB (ITU-T G987.2 Class N1) to 31 dB (ITU-T G987.2 Class N2), and is designed to support network overlay of 10G XG-PON1 over existing Class B+ GPON networks (28dB link budget).

The company also today announced that it has tripled capacity for its current OLT transceivers over the last year to help satisfy FTTH deployments in Asia and North America.

Cavium Ships 10-Core OCTEON II Processors

Cavium has begun the first shipments of its 10-core OCTEON II CN66XX processors to multiple OEM customers. The Cavium OCTEON II CN66XX integrates up to 10 MIPS64 cores and hardware acceleration for networking, mobile infrastructure, control-plane and data-center applications.

"With the CN66XX, we now offer 2.5x the number of full 64-bit CPU cores and 2x the GHz versus alternatives within an extremely compact and power-efficient form-factor," said YJ Kim, General Manager of Cavium's Infrastructure Processor Group.

Cavium said its CN66XX processors have already been selected by 3 tier-1 mobile infrastructure equipment providers.

Michigan's CTS Telecom Selects ADTRAN

CTS Telecom, an ILEC and CLEC serving southwestern Michigan, has selected the industry's fastest growing access platform, the Total Access® 5000, for a network upgrade. The upgrade will allow CTS to address higher-speed data demands and evolve the network to support VoIP to its new softswitch. ADTRAN will also provide the core technology for a major fiber roll-out funded in part by a Broadband Stimulus award. Financial terms were not disclosed.

Industry Consortium Pursues Smart Energy

A new Consortium for SEP 2 Interoperability has been formed by the HomePlug Alliance, Wi-Fi Alliance, HomeGrid Forum and ZigBee Alliance with the goal of implementing a consistent testing plan for interoperable SEP 2 devices across an IP network. A joint certification and test program will be used to certify wireless and wired devices that support IP-based smart energy applications and end-user devices such as thermostats, appliances and gateways. It will address devices operating on one or more of a variety of underlying connectivity technologies and provide the smart energy ecosystem �– including utilities, product vendors and consumers – assurances of application and device interoperability.

SEP 2 was selected in 2009 by the U.S. National Institute of Standards and Technology (NIST) as a standard profile for smart energy management in home devices. The profile is suitable for operation on a variety of IP-based technologies. This consortium establishes a communications technology-agnostic forum to unify and accelerate the realization of interoperable SEP 2 products through a joint test and certification program. The consortium intends to utilize the processes and best practices recommended by the Smart Grid Interoperability Panel (SGIP) for smart grid testing and certification programs.

"HomeGrid Forum, which is responsible for certifying and promoting technology, is excited to be working with other leading industry organizations to help accelerate the adoption of the Smart Grid throughout the world," said Matt Theall, president of HomeGrid Forum. "We believe SEP 2 will be an important factor in ensuring that wired and wireless technologies combine together to deliver Smart Grid and other services inside and outside the home and we are committed to using our expertise to help drive industry adoption."

The Next Step for Wi-Fi: Low-latency, Gigabit 802.11ac

The next big step for Wi-Fi is to make the leap to gigabit capacity with 802.11ac. As part of its Wi-Fi Day celebrations (08/02/11), Qualcomm Atheros hosted a press event in Silicon Valley to discuss how this future Wi-Fi will develop. The next rev of Wi-Fi technology, expected later this year, promises this performance boost along with new multi-user, multi-simultaneous stream capabilities.

The Wi-Fi standards have moved all the way through the alphabet from 802.11a, 802.11b, g, n, etc., and now use a double letter designation.

"802.11ac is the next big deal" said Bill McFarland, VP of Technology for Qualcomm Atheros, because it upgrades both the PHY and MAC layers for a greater than a 2x boost in rate-at-range of HD video streaming and will see widespread deployment in consumer electronics fairly quickly as it displaces 802.11n silicon.

Some key attributes of 802.11ac:

  • Unlike 802.11n, 802.11ac is exclusive to 5 GHz spectrum because this band offers more non-overlapping channels and has fewer interferers.

  • 802.11ac client silicon will support a fall-back to 802.11n when 802.11ac is not available. 802.11ac base stations will support concurrent 802.11n and 802.11ac clients.

  • 802.11ac gets its performance boost by using wider channels

  • The latency of 802.11ac is improved over 802.11n

  • Beamforming was promised in 802.11n but not really implemented in practice unless the same vendor's silicon was in both the client and access point. This problem has been fixed in 802.11ac with the industry agreeing to one beamforming methodology.

  • 802.11ac will offer better support for more significantly more clients on wireless networks.

  • Performance-to-power has been improved. Faster downloads means the radios can return to low-power standby modes faster.

  • The range of 802.11ac and 802.11n are similar.

McFarland also provided an update on the 60 GHz .11ad standard, which leverages even wider channels for in-room connectivity at up to 7 Gbps. The 60 GHz Wi-Fi would offer a true network connection, differing from other high-speed cabling option, such as Thunderbolt or USB 3.0 which are not IP-based. McFarland believes 802.11ac and 802.11ad will be complementary. In May, Qualcomm Atheros introduced the industry's first tri-band Wi-Fi chipset that integrates the multi-gigabit performance of in-room 60 GHz band with seamless handoff to 2.4 GHz and 5 GHz band Wi-Fi. The chipset was developed in partnership with Wilocity, a developer of 60 GHz multi-gigabit wireless chipsets.

McFarland expects chips for 802.11ac to begin sampling later this year. Chips for 60 GHz 802.11ad may sample a bit earlier, but he expects these will have a longer product design cycle, so 802.11ac products will probably appear on the market first and have a faster adoption curve.

10X10 MSA Releases 10Km and 40Km 100Gbps Standards

The 10x10 MSA has released 10Km and 40Km specifications for longer reach applications.

The 10Km reach specification builds on already existing 2Km specifications to ensure backward compatibility and interoperability with the existing 10X10-2Km standard.

The 40Km specification leverages existing 10Gbps DWDM network specifications to enable seamless upgrade of existing 10Gbps metro links to 100Gbps over up to 40Km single-mode fiber without the need for regeneration or amplification.

"We are very pleased with the widespread adoption of 10X10 optical modules. The new 10X10-40Km standard enables up to 800 Gbps of data to transmit over a single fiber – that's the speed the industry needs." – Scott Kipp, Chair of 10X10 MSA and Senior Technologist at Brocade.

NTT Boosts Transpacific Network to 500 Gbps

NTT Communications' Global IP Network has reached 500 Gbps of capacity on its transpacific network.

After reaching 400 Gbps of capacity in late 2010, the growth of NTT Communications' transpacific network suffered setbacks as a result of the Japanese earthquake in March 2011. The company said its network was able to quickly rebound as a result of concerted and dedicated efforts from the company's skilled engineers.

Edpnet Builds 6/4 Tbps DWDM from St. Petersburg to Stockholm

Russia's Edpnet has deployed a DWDM system with 6.4 Tbps of capacity between St. Petersburg and Stockholm. The network uses the Cisco ONS 15454 Multiservice Transport Platform (MSTP), enabling Edpnet to offer communications channels with a bandwidth of 10 Gbps (STM-64, OC-192c, 10 gigabit Ethernet WAN PHY, 10 gigabit Ethernet LAN PHY) and 40 Gbps. The system is also ready for 100 Gbps channels. The equipment was delivered by Perfect, a Cisco premier certified partner in Russia.

Sunday, July 31, 2011

USA Reaches Deals with Canada & Mexico on 700 MHz Sharing along Borders

The FCC announced deals with Industry Canada and Mexico's Secretariat of Communications and Transportation (SCT) for sharing commercial wireless broadband spectrum in the 700 MHz band along the U.S.-Canadian and U.S.-
Mexican border areas. The arrangement with Industry Canada also calls for sharing
spectrum in the 800 MHz band.

Under the arrangements, licensees on both sides of the borders will have greater access to the 698-758
MHz and 776-788 MHz bands.

The sharing is expected to facilitate the deployment of mobile wireless broadband systems near the U.S.-Canadian and U.S.-Mexican borders and will provide consumers in these areas with advanced opportunities for 4G high-speed mobile broadband access.

"These arrangements will unleash investment and benefit consumers near the borders by enabling the
rollout of 4G wireless broadband service and advanced systems for critical public safety and emergency
response communications," Chairman Julius Genachowski stated after signing the documents. "I
appreciate the commitment and dedicated efforts of everyone who has been involved in these
discussions to ensure that we are making the most effective use of this valuable spectrum."http://www.fcc.gov

Cisco Wins 3-Year Support Deal with du

Emirates Integrated Telecommunications Company (du) has awarded a three-year contract to Cisco for network support and optimisation services for existing and future network infrastructure growth.

Cisco Capital (Dubai) arranged financing. The deal provides du with a predictable and optimized Total Cost of Ownership (TCO) over three years.

Extreme Networks Posts Revenue of $89.8 Million

Extreme Networks reported quarterly net revenue of $89.8 million, as compared to $85.5 million for the same period last year. Quarterly net product revenue was $73.8 million, up 4% YoY, and service revenue was $16.0 million, down 8% YoY. Estimated net loss on a GAAP basis for the quarter was $2.1 million or a loss of $0.02* per diluted share, including the impact of a $2.8 million charge for a previously announced restructuring, net of reversals, and $1.5 million in stock-based compensation.

For the quarter, total net revenue in North America was $40.0 million, revenue in EMEA was $34.9 million, and revenue in APAC was $14.9 million. That compares to year-ago revenue in North America of $36.3 million, revenue in EMEA of $36.8 million, and revenue in APAC of $12.4 million.

"We are pleased with our ability to achieve 10% product revenue growth for fiscal year 2011, and the progress we have made transforming the Company in the areas of sales and marketing focus and product realignment," said Oscar Rodriguez, President & CEO of Extreme Networks. "These changes, along with the recently announced restructuring to reduce our overall cost structure, lay the foundation for continued improvements in fiscal 2012. In FY12, the Company will focus on improving its operating income, and is expecting to significantly improve EPS over FY11. I believe Extreme Networks is positioned well to compete in the marketplace with our new products, marketing campaigns, and cost structure. The Company is focused on executing the new vertical market strategy to offer differentiated solutions to our customers, and improved returns to our investors."

Verizon Inks Mobile Payment Deal with American Expres

Verizon Wireless will integrate American Express' new "Serve" digital payment and commerce platform on many of its mobile phones and tablets. Serve simplifies the online checkout experience by authenticating a mobile number, then allowing a customer to make a purchase on-screen.

Verizon Wireless customers will be need to establish Serve accounts that will enable them to make payments and redeem offers for goods and services directly from their mobile phones and tablets with just a few clicks using Serve. Merchants who accept Serve mobile payments will enjoy a streamlined option for processing and settlement. The Serve card is currently accepted by the millions of merchants in the United States who accept American Express.

The companies also agreed to collaborate to source, distribute and simplify redemption of online and mobile offers with participating merchants through the use of the Serve account.
  • In June, Verizon Wireless announced plans for a new service that will allow customers to make online purchases from their smartphones, tablets and PCs using numerous payment methods, including charging purchases to their monthly wireless statements or using traditional payment methods through financial institution partners. The service will be powered by Payfone. Payfone is backed by American Express, Verizon Investments, Rogers Ventures, BlackBerry Partners Fund, Opus Capital, and RRE Ventures.
  • In November 2010, AT&T Mobility, T-Mobile USA and Verizon Wireless announced the foundation of Isis -- a national mobile commerce network that aims to fundamentally transform how people shop, pay and save. The venture will leverage near-field communication (NFC) technology to enable point-of-sale transactions via mobile phone. Commercial launch in key geographic markets is expected over the next 18 months.

    Together, these operators provide wireless services to more than 200 million U.S. consumers.

    "While mobile payments will be at the core of our offering, it is only the start. We plan to create a mobile wallet that ultimately eliminates the need for consumers to carry cash, credit and debit cards, reward cards, coupons, tickets and transit passes," stated Michael Abbott, Chief Executive Officer of Isis.

    Initial financial partners include Discover, which operates a payment network currently accepted at more than seven million merchant locations nationwide, and Barclays PLC, which is expected to be the first issuer on the network.

    The companies said the Isis mobile commerce network will be available to all merchants, banks, and mobile carriers.


euNetworks Cuts Latency on London to Frankfurt Route

euNetworks Group has optimised the London to Frankfurt low latency route on its dedicated finance network. The company said it is now linking key Finance Exchanges and Multilateral Trading Facilities (MTFs) in London to Frankfurt with a lowest one way latency of 4.29 milliseconds. Additionally, following optimisation from Slough, west of London, to Frankfurt, one way latency on this route is now 4.56 milliseconds.

Level 3 Connects London Stock Exchange

Level 3 Communications now offers connectivity to its colocation facility at London Stock Exchange Group's Data Center in the City of London. The new point-of-presence (PoP) offers connectivity into Level 3's global network.

See also