Tuesday, October 18, 2011

Qwilt Raises $24 Million for ISP Video Cache

Qwilt, a start-up based in Redwood Shores, California, has raised $24 million in two rounds of funding for its development of video infrastructure products. The company's mission is to help Internet Service Providers to more efficiently and cost-effectively deliver high-quality video to their customers from sources like Netflix, YouTube and Amazon. The platform will identify, monitor, store and deliver Internet video. Product specifics have not yet been disclosed.

Qwilt's funding comes from Accel Partners, Redpoint Ventures, Crescent Point Group and other investors. The company, founded in 2010 by veterans of Cisco Systems and Juniper Networks.
  • Qwilt is headed by Alon Maor, who previously was at Cisco where he oversaw the development and operations of the Service Control Engine (SCE) product line. Alon joined Cisco following the $200M acquisition of P-Cube.

Tekelec Beats Expectations, New $20M Diameter Signaling Router Order

Tekelec pre-announced its Q3 results, saying that it has received a $20 million Diameter Signaling Router related order, the largest Diameter Signaling Router order in its history.

Tekelec now expects orders will be between $66 million and $68 million for the third quarter of 2011 -- ahead of market expectations. The $20 million order was received in early October. Revenues for the third quarter 2011 are expected to be between $103 million and $106 million, bringing the total revenues for the nine months ended September 30, 2011 to between $307 million and $310 million. Due to higher than expected “book-ship�? Eagle 5 revenue, the company expects non-GAAP gross margins for the third quarter 2011 to be in the 67%-68% range and GAAP gross margins for the third quarter to be in the range of 59%-60%.

Tekelec ended the third quarter of 2011 with $270 million in cash and no debt. The company generated $10 million to $13 million of cash flows from operations in the third quarter of 2011 and $58 million to $61 million of cash flows from operations as of the nine months ended September 30, 2011.

Full results are expected November 9.

Isocore Tests MPLS-TP Interoperability with Spirent

Isocore recently leveraged the MPLS-TP capabilities of Spirent TestCenter to validate interoperability across a multi-vendor network environment that included solutions from Alcatel-Lucent, Cisco, Juniper Networks and NEC. The Spirent gear enables a range of interoperability tests, including testing traffic and OAM over statically provisioned MPLS-TP connections and sending and receiving multicast traffic over next-generation multicast VPNs.

Dell Opens Silicon Valley Research and Development Center

Michael Dell formally opened Dell's newest research and development center on Great America Parkway in Santa Clara, California. Also speaking at the event were California Gov. Edmund G. Brown Jr. and City of Santa Clara Mayor Jamie Matthews.

Approximately 700 team members are expected eventually to occupy 240,000 square feet of space in two buildings. In addition to filling new positions, the Silicon Valley facility will allow Dell to consolidate much of its current Northern California operations. It will combine the operations of several area companies Dell has acquired, including Zing, Ocarina, Scalent and Everdream. Two other companies, KACE and Force10, will remain at their current Silicon Valley facilities.

Dell also operates R&D centers in Ra'anana, Israel and at the company's headquarters in Round Rock, Texas.

Private Equity Firm to Acquire Alcatel-Lucent's Genesys business for $1.5 Billion

A company owned by the Permira funds has agreed to acquire Alcatel-Lucent's Genesys business for $1.5 billion in cash.

Genesys – which reported 2010 sales of approximately US$500 million - specializes in customer service software and contact center solutions for enterprises. The contemplated deal would include the transfer of the approximately 1,800 employees worldwide, the management team and the existing business structure to ensure seamless continuity with customers and other stakeholders.

Ben Verwaayen, CEO of Alcatel-Lucent, said: “We have now positively concluded our evaluation of strategic options for both our Enterprise and Genesys businesses. Permira's intended acquisition of Genesys would enable this profitable business to flourish further; with Enterprise, we have reached the conclusion that retaining it and strengthening it further serves Alcatel-Lucent and our customers best. Our chosen direction is to leverage the natural connections that exist between enterprise and carrier customers, and proactively apply Enterprise's strengths and momentum in unified communications and data networking with them.�?http://www.alcatel-lucent.com

Riverbed Posts Q3 Revenue of $190 Million, up 28%

Riverbed reported Q3 2011 revenue of $190 million, an increase of 28% from $148 million of GAAP revenue reported in the third quarter of fiscal year 2010 (Q3'10). Non-GAAP revenue increased 29% to $191 million. GAAP net income for Q3'11 was $19 million, or $0.12 per share. This compares to GAAP net income of $14 million, or $0.09 per diluted share, in Q3'10. Non-GAAP net income for Q3'11 was $40 million, or $0.24 per diluted share, as compared to non-GAAP net income for Q3'10 of $27 million, or $0.17 per diluted share.

“We are very pleased with our third quarter financial results,�? said Jerry M. Kennelly, Riverbed president and CEO. “We were able to generate record revenue and strong sequential and year-over-year growth against the backdrop of an uncertain global economy. We achieved record non-GAAP operating margin of 30% and record non-GAAP net income of $40 million during a quarter in which we closed two acquisitions. Riverbed has evolved into a company that delivers a performance platform to dramatically improve IT. Our market position is stronger than ever and we are excited about the opportunity before us.�?http://www.riverbed.com

European Commission Plans EUR 9.2 Billion Broadband Investment

The European Commission announced plans to invest almost EUR 9.2 billion from 2014 to 2020 on broadband networking projects and digital services.

The public funding, which would include equity, debt instruments and grants, aims to spur additional private investments in existing networks. The Digital Agenda for Europe set targets for 2020 of broadband access for all at speeds of at least 30 Mbps, with at least 50% of households subscribing to speeds above 100Mbps. The European Commission estimates that the overall investment needed to meet this target at EUR 270 billion.

In terms of new broadband infrastructure, the EC expects project proposals from established telecoms operators as well as new players such as water, sewage, electricity utilities, cooperative investment projects or construction firms. Public-private partnerships might also get funding.

In digital services, the EC is likely to fund projects involving eGovernment, e-Health, electronic IDs, cybersecurity and SmartGrid energy management.

Ozmo Devices Cites Traction for Low-power Wi-Fi

Ozmo Devices announced a milestone for its low-power Wi-Fi Personal Area Network (Wi-Fi PAN) silicon -- the shipment of its 1 millionth OZMO2000 chip, which started shipping earlier this year.

"Ozmo is addressing a very large market opportunity currently served by Bluetooth and proprietary 2.4GHz technologies," said Bill McLean, Chief Executive Officer, Ozmo Devices. "Shipping one million units so soon after introducing the OZMO2000 demonstrates rapid market adoption and is a strong validation of Ozmo's compelling value proposition. We are determined to further expand our market leadership in the low-power Wi-Fi market."

Ozmo said its Wi-Fi chip is designed o overcome the battery life, cost and compatibility issues that have limited the broad adoption of Wi-Fi for HID (human interface device) applications. Furthermore, the OZMO2000 has demonstrated its applicability for wireless audio when Intel selected it to power the Intel® Wireless Music adaptor for Intel® WiDi-enabled laptops. It is compatible with Windows 7 SoftAP as well as Intel's My Wi-Fi Technology. Furthermore, the OZMO2000 is designed to be compatible with the Wi-Fi Direct standard from the Wi-Fi Alliance.


Broadcom Combines Baseband Modem+ Net Processor for 4G Microwave Backhaul

Broadcom introduced a system-on-a-chip to address the need for higher bandwidth in 4G mobile backhaul. The new BCM85620 chip is the first SoC to combine a baseband modem and network processor. Targeted platforms are gigabit-class microwave backhaul systems.

The device, which integrates the technology of recently acquired Provigent, combines the functionality of up to ten off-the-shelf application-specific standard parts (ASSPs) into one SoC. It provides radio-optimized traffic delivery, including robust clock delivery over packet transport needed for network synchronization.

A throughput of 1.25Gbps is achieved using advanced modulation (1024 QAM and 512QAM) and channel widths of up to 112MHz. Broadcom said it has also made strides in with enhanced EPN tolerance and forward error correction (FEC). Both SyncE and 1588 timing are supported. The integrated network processor supports higher layer traffic management. http://www.broadcom.com

  • In April, Broadcom completed its previously announced acquisition of Provigent, a supplier of mixed signal semiconductors for microwave backhaul systems. Broadcom paid approximately $313 million, net of cash assumed, to acquire all of the outstanding shares of capital stock and other rights of Provigent. Provigent's System-on-Chip (SoC) solutions address the backhaul bottleneck, including high capacity modem, baseband, networking and RF chain components. The company is based in Israel and it has offices in Santa Clara, California.

ADVA Report Q3 Revenue of EUR 79.3 million

ADVA Optical Networking reported Q3 20111 revenues of EUR 79.3 million, slightly above guidance of between EUR 73 million and EUR 78 million. This compares to EUR 80.5 million in Q3 2010 and is up 1.9% vs. Q2 2011 at EUR 77.8 million. IFRS pro forma operating income, excluding stock-based compensation and amortization & impairment of goodwill & acquisition-related intangible assets, amounted to EUR 5.5 million or 6.9% of revenues, also above guidance of between 2% and 5% of revenues.

“We are extremely pleased with our Q3 2011 revenues of EUR 79.3 million, which slightly exceed guidance and are up 1.9% vs. the previous quarter. For the most part, this development is driven by increased Ethernet access business, largely due to initial significant carrier investments for mobile backhaul solutions. Our pro forma gross margin increased from 43.0% in Q2 2011 and 40.0% in Q3 2010 to 43.5% in Q3 2011," stated Jaswir Singh, chief financial officer & chief operating officer of ADVA Optical Networking. http://www.advaoptical.com

Monday, October 17, 2011

Powerwave Misses on Q3 Revenue Citing Delayed Wireless Rollouts

Powerwave Technologies released preliminary revenue estimates for its fiscal third quarter ended October 2, 2011, saying that it now anticipates that revenues will be in the range of $75 million to $79 million -- well below market expectations.

Powerwave makes antennas and base station components for network equipment manufacturers.

The cited a number of several factors, including a significant slowdown in spending by North American network operators, a significant reduction in activity with original equipment manufacturing customers, coupled with further weakness in several international markets, including Western and Eastern Europe, and the Middle East.

Ronald Buschur, President and Chief Executive Officer of Powerwave Technologies, stated that "From a global perspective, we believe that the current economic environment has caused operators to reduce or postpone their spending plans for the near term while they evaluate the macro-economic pressures in each individual market. The Middle East market has been significantly impacted by the political unrest throughout the region. In addition, in the North American market we believe that the uncertainty arising from the government's recent opposition to the proposed merger of AT&T and T-Mobile, has led to delays in spending as these operators re-evaluate their capital spending plans."http://www.powerwave.com/2176.asp

Samsung and Google Unveil Nexus Ice Cream Sandwich Smartphone

Samsung and Google unveiled the new flagship GalaxyNexus smartphone at an event in Hong Kong.

Key features:

  • LTE and HSPA+ connectivity

  • 4.65-inch HD Super AMOLED Screen with 720p resolution

  • 1.2GHz dual-core processor

  • Android 4.0 Ice Cream

  • NFC support

  • Wi-Fi hotspot

  • Facial recognition to unlock the phone

  • Tight integration with Google services, including GoogleTalk, Gmail, Google+, Google Maps, Android market

  • WiFi 802.11 a/b/g/n

  • Built-in data usage tracking

  • Android Beam, which uses NFC technology to share content between nearby Android devices

  • Ships in November

Juniper Posts Q3 Revenue of $1.1 Billion, up 9% from 3Q10

Juniper Networks reported Q3 2011 revenue of $1,106 million, up 9% n a year-over-year basis, and down 1% sequentially. Net income was $83.7 million, or $0.16 per diluted share, and non-GAAP net income of $149.8 million, or $0.28 per diluted share, for the third quarter of 2011. Included in the GAAP diluted income per share for the quarter is a $0.02 dilutive impact associated with restructuring activities.

"Juniper executed well this quarter, and we are seeing strong customer interest in our new innovations in the data center, enterprise mobility and Converged Supercore," said Kevin Johnson, chief executive officer at Juniper Networks. "While the macroeconomic environment dictates we remain agile, Juniper is on the right strategic course to deliver continued growth."

Juniper's operating margin for the third quarter of 2011 decreased to 12.4% on a GAAP basis from 15.3% in the second quarter of 2011, and from 19.3% in the prior year third quarter. Included in the GAAP operating margin is a $16.8 million restructuring charge primarily related to workforce reductions.

ARM and TSMC Tape Out First 20nm ARM Cortex-A15

ARM and TSMC taped out the first 20nm ARM® Cortex-A15 MPCore™ processor. The next step is for ARM to optimize its physical IP technology to specific TSMC 20nm process technologies for Power, Performance and Area (PPA), driving the specification of the Cortex-A15 Processor Optimization Pack (POP). The companies noted that TSMC's 20nm process provides more than a 2X performance increase over preceding generations.

RIM Unveils BBX -- its Next Gen BlackBerry Platform

Research in Motion introduced its next generation mobile platform for BlackBerry smartphones and tablets.

Key features of BBX include support for HTML5 with BlackBerry WebWorks, Adobe AIR, Native C/C++, and the BlackBerry Runtime for Android Apps. Apps built today for the BlackBerry PlayBook tablet will also run on BBX.

The release date has not yet been specified.http://devblog.blackberry.com/

Verizon Wins 5-Year Cloud Deal with ARINC for Airline Check-in

Verizon has been awarded a five year contract to provide ARINC with cloud services through Verizon's Terremark IT services subsidiary for the delivery of ARINC's flagship airline check-in solution, vMUSE Enterprise.

ARINC's vMUSE Enterprise application will be migrated to Terremark's Enterprise Cloud solution, which will be served from its Network Access Point (NAP) of the Americas in Miami. ARINC also plans to locate its vMUSE Enterprise application in Terremark's NAP do Brazil in Sao Paolo, setting the groundwork for an IT services cloud-delivery model that can work effectively at any airport across the globe.

Telstra Shareholders Approve Decommission and NBN Plan

Shareholders in Telstra have voted to approve the company's participation in the roll out of the National Broadband Network (NBN), including the decommissioning of the company's copper network. The resolution on the NBN received the support of 99 percent of shareholders who have voted or lodged a proxy.

“From the outset, we said we would put any proposal to cooperate with the NBN to shareholders – we consider the vote today as the most important step in the process we commenced over two years ago. It is clear from this interim result on the resolution that, given the alternatives facing their company, both institutional and retail shareholders are supportive of our involvement in the NBN," stated Telstra Chairman Catherine Livingstone.

In her address to shareholders, Livingstone also noted some other interesting strategic trends:

Australia is one of the most penetrated smartphone markets in the world.

Data traffic on Telstra's networks has doubled in 2011, and is projected to increase 30-fold within 5 years and 1,000-fold within 10 years.

Telstra's growth areas – Media, Network Applications and Services, and Asia – now account for 19% of total sales revenues.

It is intention of Telstra's Board to maintain a 28 cent fully franked dividend for fiscal 2012 and fiscal 2013.

In 2011, Telstra has added an extra 659,000 service bundles, 1.7 million mobiles, 158,000 fixed broadband lines, and 914,000 new mobile broadband customers.

Siklu Wireless Raises $19 Million for EtherHaul E-band radio

Siklu Wireless, a start-up based in Petach Tikva, Israel, raised $19 million in Series B funding for its EtherHaul E-band radios aimed at the mobile backhaul market.

The Siklu EtherHaul radio operates in the relatively new and unused E-band wireless spectrum (71-76 GHz, 81-86 GHz and 92-95 GHz). It delivers Gigabit speeds and is aimed at urban wireless backhaul of macro, micro and pico-cell.

New investors in this round include Amiti Ventures, Qualcomm and another undisclosed category leading strategic investor. They have been joined by all existing investors: DFJ-Tamir Fishman Ventures, Evergreen Venture Partners and Argonaut Private Equity. Ben Rabinowitz, Managing Partner at Amiti Ventures, will join the Board of Directors of Siklu. http://www.siklu.com

Infinera Posts Q3 Revenue of $104 Million

Infinera reported Q3 2011 revenue of $104.0 million compared to $96.0 million in the second quarter of 2011 and $130.1 million in the third quarter of 2010. GAAP gross margin for the third quarter of 2011 was 39% compared to 39% in the second quarter of 2011 and 50% in the third quarter of 2010. GAAP net loss for the quarter was $21.8 million, or $(0.21) per share, compared to net loss of $24.2 million, or $(0.23) per share, in the second quarter of 2011 and net income of $4.4 million, or $0.04 per diluted share, in the third quarter of 2010.

“We remain encouraged by our recent revenue performance and the momentum in booking activity as customers continue to address their increased bandwidth needs with Infinera-based networks,�? said Tom Fallon, president and chief executive officer. “Several factors are contributing to these trends-- our significant installed base, the broader application of our product line, our expanded sales force and a stronger focus at Infinera on key vertical markets and across geographies.�?http://www.infinera.com

Cisco Scales Data Center Fabric to over 12,000 10GE Ports

Cisco is scaling its Unified Fabric data center architecture to support over 12,000 10GE server ports in a single fabric using its Nexus series switches -- this is double the capacity of Juniper's Qfabric, according to the company. Cisco promises to deliver the solution at lower cost than its competitor as well.

The new data center fabric scalability is provided in second generation capabilities for Cisco FabricPath in Nexus 7000 Series and Nexus5500 switches.

The new Fabric 2 module and new high density L2/L3 10GbE F2 Series line card enable up to 768 Line Rate L2/L3 10GbE ports to be packed into a single Nexus 7000 Series chassis. Power is reduced to less than 10W per 10GE port.

The company is introducing the Nexus 7009, featuring a compact form factor (14RU) and high availability and virtualization support. Cisco also added new switches with sub-microsecond latency to the Nexus 3000 ultra-low latency switching series, and introduced a virtualized version of its ASA security appliance to deliver consistent security for virtualized and cloud environments. http://www.cisco.com

  • In March 2011, Cisco rolled out a series of updates and enhancements across its Data Center Business Advantage portfolio, including the Cisco Nexus 7000 family and Nexus 5000 Series, the new ultra-low latency platform Cisco Nexus 3000, Cisco MDS storage switches, the Cisco Unified Computing System, the Cisco Data Center Network Manager, and Cisco NX-OS, the comprehensive data center operating system that spans the Cisco data center portfolio. These enhancements included Fabric Extender Technology (FEX) -- enables customers to build a single, modular fabric that extends from Cisco Nexus switches to Cisco Unified Computing System servers to adapters and to virtual machines -- and Director-Class Multi-hop Fibre Channel over Ethernet.

  • In February 2011, Juniper Networks unveiled its QFabric architecture for collapsing multilayer data center infrastructure into a single, any-to-any fabric that unifies networking, storage and cloud computing resources. Initially, QFabric scales to 6,000 network nodes, allowing any network interface within the network to connect to any other interface in a single hop. Juniper achieves this 6,000 port switching fabric by decoupling the line cards on the central fabric and moving them out into the network using dual-homed fiber connections. The entire 6,000 node network is a single switch and can be managed as such.