Tuesday, January 31, 2012

JDSU Beats Guidance -- Revenue of $412.8 million

JDSU reported quarterly revenue of $412.8 million and net loss was $(10.2) million, or $(0.04) per share. This compares to net revenue of $420.8 million and net loss of $(5.8) million, or $(0.03) per share for the prior quarter, and net revenue of $473.5 million and net income of $23.6 million, or $0.10 per share for the same period a year earlier.

“Our fiscal second quarter financial results surpassed our expectations. The outstanding efforts of our team and our manufacturing partner in Thailand coupled with our continued focus on expense control resulted in revenue and operating income that exceeded our guidance. Our balance sheet remains strong and we generated over $45 million of cash from operations during the quarter,�? said Tom Waechter, JDSU’s President and Chief Executive Officer. “Looking ahead, we are pleased with the improving demand for our products, as evidenced by a book to bill of greater than one in each of our business segments, although we expect macro-economic conditions to cause margin pressure in the near-term.�?

Some notes:

Communications Test and Measurement revenue of $196.2 million increased by 5.9% compared to the prior quarter and decreased 15.2% compared to the second quarter of fiscal 2011. Revenue from this segment represented 47.5% of total net revenue.

Communications and Commercial Optical Products revenue of $163.2 million decreased 9.5% compared to the prior quarter and decreased 14.6% compared to the second quarter of fiscal 2011. Revenue from this segment represented 39.5% of total net revenue.

Advanced Optical Technologies revenue of $53.7 million decreased 3.4% compared to the prior quarter and decreased 1.8% compared to the second quarter of fiscal 2011. Revenue from this segment represented 13.0% of total net revenue.

Americas’ customers represented 51% of total net revenue for the quarter. EMEA and Asia-Pacific customers represented 24% and 25%, respectively, of total net revenue.

eircom Seeks Investors or Buyer

The board of directors of eircom has retained Morgan Stanley & Co International to seek a buyer or new investors in the company, Discussions are also underway with bondholders regarding options for the balance sheet remediation process.http://pressroom.eircom.net/
  • In December 2011, a proposal from Singapore's ST Telemedia (STT) for investment in eircom was rejected by a majority of the First Lien lenders in eircom.

Facebook Connects 483 million Users per Day -- 48% YoY Growth

In an SEC filing for its expected IPO, Facebook disclosed key facts about operations. Some site metrics:

Worldwide Monthly Active Users (MAUs) reached 845 million, up 39% from a year earlier.

In the U.S., MAUs reached 161 million, up 16% over a year earlier. In India, Facebook had 46 million MAUs in December.

Worldwide Daily Active users (DAUs) increased 48% to 483 million during December 2011 from 327 million during December 2010.

DAUs as a percentage of MAUs increased from 54% in 2010 to 57% in December 2011.

Mobile MAUs reached 425 million during December 2011. The Facebook app for the iPad launched in October 2011.

In April 2011, Facebook began serving traffic out of its first wholly-owned data center in Pineville, Oregon. The company is investing in new data centers in the U.S. and in Europe.

There were more than 100 billion friend connections on Facebook as of December 31, 2011.

On average more than 250 million photos per day were uploaded to Facebook in the three months ended December 31, 2011.

Users generated an average of 2.7 billion Likes and Comments per day during the three months ended December 31, 2011.

Cisco Boosts 40/100 Gigabit Ethernet Capabilities

Cisco introduced a 40 Gigabit Ethernet Interface Module for its Catalyst 6500 Series and 40/100 Gigabit Ethernet capabilities for its Nexus 7000 data center switch. To expand its campus aggregation and data center top of rack switching, Cisco also announced two new fixed-configuration platforms that provide high-density 10 GE switching.

The enhancements include two new M2-Series modules for the Nexus 7000: a 2-port, 100 GbE Module with XL Option, which enables up to 32 high-density, non-blocking 100 GE ports in a Nexus 7000 chassis; and a 6-port 40 GbE Module with XL Option that enables up to 96 non-blocking 40 GE ports per Nexus 7000 chassis. A new Nexus 3064-X Switch is offers ultra-low-latency Ethernet specifically targeted at financial services companies. Cisco Nexus 1010-X Virtual Services Appliance offers a dedicated hardware platform for scalable deployment of services critical to virtualization infrastructure.

Cisco also introduced a "Easy Virtual Network" tool for its Catalyst 6500, 4500 and Aggregation Services Router (ASR) 1000 product lines to make it easier to manage virtual services. It simplifies the creation of separate logical networks on a single physical infrastructure.

Broadcom Posts Q4 Revenue of $1.82 Billion, Down 7% Sequentially

Broadcom reported Q4 revenue above guidance of $1.82 billion. a decrease of 7.0% compared with the $1.96 billion reported for the third quarter of 2011 and a decrease of 6.4% compared with the $1.95 billion reported for the fourth quarter of 2010. Net income (GAAP) for the fourth quarter of 2011 was $254 million, or $.45 per share (diluted), compared with GAAP net income of $270 million, or $.48 per share (diluted), for the third quarter of 2011 and GAAP net income of $266 million, or $.47 per share (diluted), for the fourth quarter of 2010.

"Broadcom delivered solid results in 2011, as we gained significant market share, secured record design wins across our businesses, and delivered record revenue and cash flow from operations," said Scott McGregor, Broadcom's President and Chief Executive Officer. "Looking forward, we will remain focused on product innovation and engineering execution that position us to grow faster than the industry."http://www.broadcom.com

Belgacom Offers Alcatel-Lucent’s Application Assurance

Belgacom has begun offering a new tool to enterprises that provides visibility into which applications are using up the most resources on enterprise networks at any given time as well as how these applications are performing.

The new capability is based on Alcatel-Lucent's "Application Assurance" solution, which is offered on top of the 7750 Service Router (SR) and 7450 Ethernet Service Switch (ESS). The solution is based on the Multiservice Integrated Service Adapter (MS-ISA) - which extends the intelligence of the 7750 SR and 7450 ESS - in combination with the 5670 Reporting and Analysis Manager (RAM), which provides extensive tools and capabilities to analyze and process detailed, application-level statistics per-subscriber.

Tom Wuyts, director WAN, Internet & Security (Enterprise Business Unit) at Belgacom said: “With the Alcatel-Lucent Application Assurance solution, our enterprise customers will have clear insight into how much bandwidth various applications are using – this is a key element of our 'Smart Networking' initiative, which is geared toward bringing greater intelligence to our networks for the benefit of our customers. On the whole, enterprises are very concerned about the performance of applications they access from the cloud – this new solution will help eliminate those concerns, and put enterprises in a better position to take advantage of the cost and flexibility benefits that the cloud has to offer. As importantly, our customers can take advantage of the service quickly and cost effectively, because there is no need for on-site equipment.�?http://www.alcatel-lucent.com

Verizon Wireless and Comcast Launch Joint Marketing

Verizon Wireless and Comcast have been offering each other's services in the San Francisco Bay area. New customers who sign up for both a qualifying Xfinity offering and a Verizon Wireless smartphone or tablet plan will be eligible to receive a Visa prepaid card valued up to $300. Similar programs have been launched in Portland and Seattle.
  • Verizon Wireless announced a deal to acquire 122 Advanced Wireless Services spectrum licenses from SpectrumCo, a joint venture between Comcast Corporation, Time Warner Cable, and Bright House Networks, for $3.6 billion. The transfer of licenses will require approval from the FCC and review from the Department of Justice. The companies also announced several agreements to resell each others' services. The cable companies will have the option of selling Verizon Wireless' service on a wholesale basis. Furthermore, the companies will form an innovation technology joint venture to develop technology that better integrates wireline and wireless products and services.

Qualcomm Posts Record Quarter, up 14% Sequentially

Qualcomm reported record quarterly revenue of $4.68 billion, up 40 percent year-over-year and 14 percent sequentially. Net income was $1.40 billion, up 20 percent y-o-y and 33 percent sequentially. Diluted earnings per share were $0.81, up 14 percent y-o-y and 31 percent sequentially.

"I am pleased to report another record quarter with revenues, earnings and MSM shipments reaching all-time highs, driven by our industry-leading chipset portfolio and the continued strong demand for smartphones around the world," said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. "We are raising our revenue and earnings guidance as our broad licensing partnerships and extensive chipset roadmap, led by our integrated Snapdragon processors, position us well for strong growth in fiscal 2012. We continue to invest in innovative wireless technologies, products and services, and we are excited about the opportunities ahead as 3G and 4G continue to expand across new device types and geographies."

The y-o-y comparisons include the results of Qualcomm Atheros, which was acquired on May 24, 2011. Gains from Qualcomm's sale of substantially all of its 700 MHz spectrum for $1.9 billion will be reported in the next quarterly report.

Some notes:

MSM shipments reached 156 million units, up 32 percent y-o-y and 23 percent sequentially.

September quarter total reported device sales reached approximately $41.4 billion, up 22 percent y-o-y and 6 percent sequentially.

September quarter estimated 3G/4G device shipments were approximately 191 to 195 million units, at an estimated average selling price of approximately $212 to $218 per unit.

Qualcomm is currently holding approximately $22.0 billion in cash equivalents and marketable securities. Of this, approximately $15.9 billion is overseas.

Aviat Networks Posts Revenue of $105 Million

Aviat Networks reported quarterly revenue within its previous guidance -- $105.0 million, compared with $115.3 million in the year-ago quarter. Revenue and results of operations from WiMAX are classified as discontinued operations for all periods presented. The company reported a net loss, including discontinued operations, of $(12.8) million or $(0.22) per share, compared with a net loss of $(12.5) million or $(0.21) per share in the year-ago quarter. Loss from continuing operations was $(10.0) million or $(0.17) per share compared with the loss from continuing operations of $(10.0) million or $(0.17) per share in the year-ago quarter.

"We are pleased with another solid quarter across the board," said Michael Pangia, president and CEO, Aviat Networks. "Our global team executed as planned and we overcame the challenges in Thailand from the recent flooding. Given the progress and momentum we have made in meeting our commitments in the first half of our fiscal year 2012, we are confident that we are on track to meet our key objectives during the remainder of this year."http://www.aviatnetworks.com

Monday, January 30, 2012

Riverbed Deepens its Cascade Network Performance Monitoring

Riverbed Technology has enhanced its Cascade application-aware network performance management (NPM) solution by extending its performance monitoring and troubleshooting capabilities deeper into the data center. The goal is to provide visibility into virtualized data centers and data centers that use load balancing application delivery controllers (ADCs).

The new release, Cascade 9.5,features a wizard-based "Profiler" for mapping service monitoring across ADCs. A Virtual Cascade Shark provides continuous packet capture and performance analysis in virtual environments.

Cascade has added new multi-segment analysis capabilities that simplify the task of correlating and analyzing related traffic streams captured from multiple locations or sources to quickly identify where on the network performance issues are occurring.

In addition, Cascade 9.5 automates the discovery and monitoring of load balanced applications. By integrating with ADCs—F5 Local Traffic Manager, Riverbed Stingray Traffic Manager, and others—Cascade bridges the visibility gap between the client-side and server-side connections of load balancers, providing IT operations with a view of application performance.

RadiSys Posts Q4 Revenue of $79.5 million

RadiSys reported Q4 2011 revenue of $79.5 million and non-GAAP revenue of $80.2 million, up $13.3 million or 20% on a non-GAAP basis when compared to the fourth quarter of 2010. Fourth quarter GAAP net loss was $6.7 million or $0.25 per share and non-GAAP net income was $1.4 million or $0.05 per diluted share.

“Our fourth quarter revenue came in as we expected, and we exceeded our non-GAAP gross margin and EPS expectations with a higher mix of media server revenue. Our growing Next Generation Communications revenue is now on an annualized run-rate of over $200 million going into 2012 and represents nearly two thirds of total revenue. We also have significantly improved our customer diversification and our top customer comprised only 19% of total revenue in the fourth quarter. We had another fantastic design win quarter totaling approximately $95 million of expected revenue over the next five years, bringing our second half total to almost $200 million," stated Mike Dagenais, Radisys’ Chief Executive Officer.

OIF Focuses on Next Generation Interconnects

The OIF is planning to develop a Next Generation Interconnect Framework Document in 2012 that looks 5-8 years forward and identifies application spaces that may require industry consensus. A workshop, which was held last week in Cupertino, California, was attended and featured presentations by Brocade, Cisco, Ericsson, Finisar, Hewlett Packard, Infinera, Luxtera, Molex, TE Connectivity, Tellabs and Xilinx.

Members of the Physical and Link Layer Working Group proposed a 28G Medium Reach (MR) Common Electrical Interface (CEI) project to support chip-to-chip interfaces. It will build on the previous 28G CEI projects, including short reach and very short reach distances, all of which enable 100G applications. A low power medium reach chip-to-chip interface is needed to enable high density and lower power line-card designs. This project will facilitate increased channel density in carrier equipment and will specify operation of 1 to n lanes of data operating at up to 28Gbps over 0 to 500mm using one connector.

A second new project titled Generation 2.0 100G long-haul DWDM Transmission Module MSA was also started in the PLL Working Group. This project will be based on technical feasibility of smaller module size with reduced power consumption for the next generation 100G MSA. Shrinking the size of the current generation 1.0 100G MSA module and lowering the power dissipation will open the possibility of having multiple modules or cards in a system rack slot, leading to higher overall capacity of the system at a lower overall cost and will enable new applications.

Cyan Shortens Name

Cyan, which develops multi-layer, packet-optical transport platforms, has changed its legal name to “Cyan�? from “Cyan Optics.�?

“This name change reflects Cyan’s ongoing focus on delivering a family of innovative packet-optical transport solutions with a broadening range of software and software-as-a-service (SaaS) systems, and comprehensive professional services," said Frank Wiener, Cyan’s vice president of marketing.http://cyaninc.com

Solera Raises $20 Million for Network Analytics Recorder

Solera Networks, a start-up based in Salt Lake City, raised $20 million in Series D financing for its Network Security Analytics.

Solera leverages its patented DeepSee platform to collect, index and classify all network traffic (including cloud and mobile) in real-time, delivering a complete picture of what’s happening for any security event, including advanced persistent threats (APTs). Solera gives CISOs answers to the most important questions, such as: “What, precisely, is going on and where? What has been affected or lost? Does a problem still exist somewhere else within the network?�? Solera tells security professionals

The new funding was led by Intel Capital. Intel Capital and joined by existing investors Allegis Capital, Signal Peak Ventures and Trident Capital.

Tellabs Drops 9100 LTE Platform in Restructuring

Tellabs reported Q4 2011 revenue of $317 million, compared with $410 million in the year-ago quarter. There was a GAAP net loss of $5 million or 1 cent per share, compared with a net loss of $11 million or 3 cents per share in the fourth quarter of 2010. On a non-GAAP basis, Tellabs recorded net earnings of $4 million or 1 cent per share in the fourth quarter of 2011, compared with net earnings of $6 million or 2 cents per share in the year-ago quarter. Broadband segment revenue was $166 million, Transport segment revenue was $92 million and Services segment revenue was $59 million.

Tellabs announced a major restructuring which will see it drop development of its SmartCore 9100 LTE platform, although the company will continue to support its SmartCore 9100 WiMAX products. R&D will be consolidated into fewer location and as a result Tellabs will close facilities in Petaluma (California), Vancouver (Canada), Bangalore (India) and Karachi (Pakistan). The move will eliminate about 530 jobs. Tellabs will incur about $107 million in restructuring charges in Q1 2012.

�?In a climate of economic uncertainty, Tellabs needs to align expenses with revenue,�? said Rob Pullen, Tellabs CEO and president. “Unfortunately, our restructuring will affect about 530 people. We will reduce expense and stop new development work on the Tellabs SmartCore 9100 LTE product, while continuing to support Tellabs SmartCore 9100 WiMax customers. “We’ll address customers’ needs through our next-generation portfolio of products and services for the smart mobile Internet, including Tellabs Mobile Backhaul Solution, Tellabs Packet Optical Solution and
professional services such as Tellabs Insight Analytics Services.�?

Revenue for Q1 is expected to be in a range from $260 million to $290 million.

During Q4, Tellabs saw revenue from 11 new customers for its Packet Optical Solution, including its Optical 7100 and 7300 systems. In the fourth quarter, there was revenue from 2 new customers for the Tellabs Mobile Backhaul Solution, including the Tellabs 8600 and 8800 systems. The company continues to shift to new Tellabs 8609 and Ethernet-optimized mobile backhaul platform for LTE networks. Tellabs now reports two 8600 LTE networks running and LTE trials underway with 3 customers.

At the end of Q4, Tellabs had 3,250 employees compared with about 3,300 employees at the end of 3Q.

Revenue outside of North America grew 27% year-over-year to $636 million in 2011. Tellabs' revenue outside of North America was 49% of overall 2011 revenue, the highest percentage ever.
  • The Tellabs Smartcore 9100 series is a mobile packet core platform for WiMAX networks. The platform was originally developed by WiChorus, a start-up based in San Jose that Tellabs acquired in 2009 for $165 million in cash. The system provides subscriber management on a per application, per subscriber, per flow basis at line rate. Its functionality included serving as an ASN gateway and Home agent. Clearwire was an early customer.

  • In September 2011, Tellabs unveiled a new family of content-aware SmartCore 9200 edge routers featuring a massive 1 terabit per slot capacity for up to 11.2 Tbps per chassis. The new platforms, which build on the Tellabs 8800 MSR series as a carrier-class edge routing platform for IP/MPLS and Ethernet, leverage a "SmartCard" architecture where the service intelligence is placed on each interface card, providing fine grained visibility and DPI-based traffic management on the card, instead of requiring separate Ethernet cards, Mobile Packet Core cards and DPI cards in each chassis.

    Tellabs said its goal in developing its next generation edge routers was to enable traffic engineering optimization where application flows can be identified and policies enforced based on the fluctuating loads on the network. A central feature of the platform is the new Tellabs "GeniOS" Operating System, an open system that enables the operator to manage traffic on an application basis. Tellabs "GeniOS" can provide distributed and virtualized capabilities for the Layer 3-7 infrastructure as well as subscriber management and other third-party applications, such as security and malware programs. A single services control layer enables control of IP/Ethernet, Mobile Packet Core, Analytics and PCEF, Video Services and Security.

  • Tellabs said its new platform uses a combination of merchant silicon and its own programmable logic devices. Telstra is a trial site.

FCC Updates Lifeline Program for Low-Income Americans

The three current commissioners of the Federal Communications Commission voted to approve a comprehensive overhaul of the Lifeline universal service program, which helps tens of millions of low-income Americans afford basic phone service. The current Lifeline program, which was put in place in 1985, predated the rise of mobile phone service and gradually enabled perverse incentives for some carriers to continue an entrenched cost to the government.

The FCC estimates that its reforms will save the government $2 billion over the next three years. Key elements of the reforms include:

  • Setting a savings target of $200 million for 2012, and putting the Commission in a position to adopt an appropriate budget for the program in early 2013 after review of a six-month report and one-year report on the effects of the Order.

  • Creation of a National Lifeline Accountability Database to prevent multiple carriers from receiving support for the same subscriber. The database will build on FCC efforts in 2011 that eliminated nearly 270,000 duplicate subscriptions in 12 states following review of over
    3.6 million subscriber records, saving $33 million.

  • Creation of eligibility databases from governmental data sources, enabling fully automated verification of consumers’ initial and ongoing Lifeline eligibility. This would reduce the potential for fraud while cutting red tape for consumers and providers. A database based on
    the three most common federal benefit programs through which consumers qualify for Lifeline will be created no later than the end of 2013.

  • Establishing a one-per-household rule applicable to all providers in the program, defining household as an “economic unit�? so that separate low-income families living at the same address can get connected.

  • Establishing clear goals and metrics to measure program performance and effectiveness.

  • Phasing out support for services such as Toll Limitation – subsidies to carriers for blocking or restricting long-distance service—and ending Link Up – subsidies to carriers for initial connection charges. Link Up will continue in Tribal lands.

  • Reducing burdens on carriers by establishing a uniform, interim flat rate of reimbursement, allowing carriers to obtain a subscriber’s signature electronically, and streamlining enrollment through uniform, nationwide eligibility criteria.

  • Adopting an express goal for the program of ensuring availability of broadband for all low-income Americans.

  • Establish a Broadband Adoption Pilot Program using up to $25 million in savings from other reforms to test and determine how Lifeline can best be used to increase broadband adoption among Lifeline-eligible consumers. Starting this year, the program will solicit applications from broadband providers and will select a number of projects to fund. Lifeline will help reduce the monthly cost of broadband service, but applicants will be expected to help address other challenges to broadband adoption, including the cost of devices and digital literacy.

  • Proposes increasing digital literacy training at libraries and schools.

Ericsson Announces 2nd Gen DC/DC Telecom Power Modules

Ericsson unveiled its second digital-power Advanced Bus Converter platform for use with board-mounted DC/DC power modules in telecom and datacom applications.

The new FRIDA II DC/DC power modules are designed for lower power dissipation in end-customer systems – decreasing the requirement for hard cooling and delivering higher reliability, lower CO2 emissions and lower Total Cost Of Ownership (TCO2). The first generation FRIDA modules were introduced in 2008.

Ericsson said the new design leverages a 32-bit ARM7TDMI-S microprocessor core, offers a tightly regulated output voltage (2%) across the entire operation, and includes proprietary firmware to manage complex scenarios and the challenges faced by DC/DC board-mounted power supplies in telecom and datacom applications,http://www.ericsson.com

Ericsson Wins Mobile Backhaul Contracts in Germany, Belgium

Ericsson announced contracts to upgrade the mobile backhaul networks for KPN International subsidiaries E-Plus Group in Germany and KPN Group Belgium. Ericsson will install more than 15,000 MINI-LINK transmission node links in these countries before the end of 2013. Work is already underway. Financial terms were not disclosed.

Solera Raises $20 Million for Network Analytics Recorder

Solera Networks, a start-up based in Salt Lake City, raised $20 million in Series D financing for its Network Security Analytics.

Solera leverages its patented DeepSee platform to collect, index and classify all network traffic (including cloud and mobile) in real-time, delivering a complete picture of what’s happening for any security event, including advanced persistent threats (APTs). Solera gives CISOs answers to the most important questions, such as: “What, precisely, is going on and where? What has been affected or lost? Does a problem still exist somewhere else within the network?�? Solera tells security professionals

The new funding was led by Intel Capital. Intel Capital and joined by existing investors Allegis Capital, Signal Peak Ventures and Trident Capital.








Sunday, January 29, 2012

Fujitsu Wins Key Domain Supplier Status with AT&T

Fujitsu Network Communications has been selected as one of AT&T's Domain Suppliers for optical and transport equipment. The multi-year selection covers equipment used to expand and maintain AT&T's metropolitan and long-haul network infrastructure. Financial terms of the supplier agreement are still being negotiated.

AT&T's Domain Supplier program, launched in September 2009, facilitates a more collaborative relationship with AT&T's equipment and software suppliers, enabling AT&T to have the best technologies in place to serve its customers. The program is also designed to ensure that the company's network technology investment accelerates AT&T's move toward a network that is well-equipped for the future.

Fujitsu Network Communications, which is headquartered in Richardson, Texas, offers packet optical networking solutions, WDM and SONET platforms manufactured in North America. It also provides multi-vendor network services as well as end-to-end solutions for design, implementation, migration, support and management of optical networks.

"After an extensive evaluation of multiple optical and transport equipment suppliers, we are pleased to extend our relationship with Fujitsu," said Tim Harden, President of AT&T's Supply Chain and Fleet Operations organization.
  • In August 2011, Fujitsu introduced an Ethernet over Anything (EoX) framework that enables its FLASHWAVE 9500 Packet Optical Networking Platform (Packet ONP) to serve as a gateway for delivering Metro Ethernet Forum (MEF)-compliant services across various transport networks. Fujitsu's EoX vision, which is initially implemented as an EoX Gateway configuration of the FLASHWAVE 9500, now extends into the company's portfolio of access products.