Wednesday, February 1, 2012

Cavium's Revenue Declines 17% in Q4 to $68 Million

Cavium posted Q4 2011 revenue of $56.3 million, a 16.9% sequential decrease from the $67.7 million reported for the third quarter of 2011.
Net loss for the fourth quarter of 2011, on a GAAP basis, was $9.4 million, or $(0.19) per diluted share, compared to net income of $6.0 million, or $0.12 per diluted share in the third quarter of 2011. Gross margins were 58.1% in the fourth quarter of 2011 compared to 59.9% in the third quarter of 2011. Total cash and cash equivalents were $63.2 million at December 31, 2011.

Palo Alto Networks Hires Ex-CFO of Aruba Networks

Palo Alto Networks appointed Steffan Tomlinson as its new chief financial officer (CFO), effective immediately. Most notably, from 2005 to 2011, Tomlinson served as chief financial officer of Aruba Networks and was instrumental in both their Initial Public Offering and helping the company scale to facilitate growth. From 2000 to 2005, he was the first non-founder employee and, ultimately, chief financial officer of Peribit Networks.

Extreme Posts Revenue of $82.8 Million, Profit of $4.1 Million

Extreme Networks reported quarterly net revenue of $82.8 million, and GAAP net income of $4.1 million or $0.04 per diluted share.

"These results show the initial positive effect of our company transformation with product revenue up 8% and non-GAAP operating income up 25% from Q1," said Oscar Rodriguez, President and CEO of Extreme Networks. "We are now focused on driving the success of our new products for the cloud, data center and mobile markets, which will begin shipping this quarter."

Rodriguez continued, "Across our vertical markets, we are seeing strong interest in new cloud-scale products including the Black Diamond X8, and our new mobile backhaul products, the E4G cell-site routers."

Total net revenue in Americas was $36.8 million, revenue in EMEA was $32.4 million, and revenue in APAC was $13.6 million. That compares to revenue in Americas of $30.8 million, revenue in EMEA of $37.2 million, and revenue in APAC of $17.1 million for the same period last year. For the quarter, total revenue increased 5%, and product revenue was up 8% sequentially from the first quarter of fiscal 2012.

Anite Collaborates on TD-LTE Testing with China Mobile

Anite, which specializes in wireless device testing technology, announced a Memorandum of Understanding (MoU) with China Mobile Research Institute (CMRI) to collaborate on research in order to facilitate the global roll-out of TD-LTE technology. The companies are working to develop validated protocol conformance and interoperability test specifications and test systems.

América Móvil Picks Alcatel-Lucent for LTE

América Móvil, the largest wireless operator in the Americas, has selected Alcatel-Lucent to provide infrastructure for its LTE/4G network rollout in Latin America. The initial deployment with Claro, América Móvil's brand in Puerto Rico, is underway. Financial terms were not disclosed.

Alcatel-Lucent noted that its LTE solutions have now been selected by more than 20 customers, including two of the world’s largest service providers for commercial deployments, and are involved in over 70 trials worldwide.
  • As of September 30, 2011, América Móvil had 241.5 million wireless subscribers and 56.4 million fixed revenue generating units in the Americas.

Ericsson and Qualcomm Complete Voice Handover from LTE to WCDMA

Ericsson and Qualcomm announced the successful handover of a voice call from LTE to WCDMA on an end-to-end network. The handover used 3GPP-standardized Single Radio Voice Call Continuity (SRVCC).

The testing, which was completed in December, demonstrated seamless voice service when the user moves out of LTE coverage as the call is automatically handed over to WCDMA or GSM. The end-to-end network was supplied by Ericsson and the smartphone used an LTE/3G multimode chipset from Qualcomm. The handover mechanism is supported on Ericsson's end-to-end products and solutions; LTE/WCDMA/GSM RAN, Evolved Packet Core, MSC and IMS to work towards VoLTE enabled LTE smartphones.

"By accomplishing this advanced LTE handover technology together with Qualcomm, we now ensure that operators can meet consumers' expectations on a high-quality voice over LTE service. Operators will be able to maintain their quality brand for their voice business when they launch voice over LTE," stated Johan Wibergh, Head of Business Unit Networks, Ericsson.

The first operators are expected to begin deploying SRVCC during 2012, followed by more global commercial launches in 2013.

AT&T and Orange Expand Cisco Telepresence Interconnectivity

AT&T and Orange Business Services announced a new inter-provider connectivity agreement for a global telepresence service that expands the features and capabilities of video collaboration. The new service is available to all AT&T Telepresence Solution and Orange Telepresence Community customers using Cisco TelePresence endpoints.

“This capability with Orange further extends AT&T’s telepresence offer and brings the benefits of the AT&T Business Exchange to even more global customers who understand the value of connecting through face-to-face collaboration,�? said Alan Benway, Executive Director of AT&T Business Solutions. “By using our world-class MPLS network to connect organizations to their customers, suppliers and business partners, telepresence has proven to be a valuable communications tool -- in fact, more than one-third of the companies ranked in the Fortune 100 are connected to the AT&T Business Exchange. Telepresence is a valued solution that is hard to ignore when considering the organizational and environmental benefits the technology brings to the table."

TeliaSonera Increases Stake in GSM Kazakhstan

TeliaSonera has increased its ownership in in GSM Kazakhstan LLP, operating under the brand Kcell, by acquiring a 49 % stake in the company from Kazakhtelecom. The price paid was US$1.519 billion.

TeliaSonera has further agreed, subject to certain conditions, to sell 25 percent of the shares minus one share in Kcell in an Initial Public Offering (IPO). The IPO process has been initiated, and is expected to be completed during 2012. Depending on the share price development after the IPO, TeliaSonera may have to make an additional payment to Kazakhtelecom.

After the transaction, GSM Kazakhstan LLP is owned by Fintur Holdings (51%) and TeliaSonera (49%). Fintur Holdings B.V. is owned by TeliaSonera (58.55%) and Turkcell (41.45%). Once both steps of the transaction have been completed, TeliaSonera’s effective ownership in Kcell will be 61.9%.

HP Enables OpenFlow across its Enterprise Switches

HP is enabling OpenFlow across its FlexNetwork enterprise switches. The new capabilities are delivered as a free software upgrade across 16 switches, including the HP 3500, 5400 and 8200 series. The support will be expended to all switches in the HP FlexNetwork architecture this year.

OpenFlow is an emerging network virtualization technology pioneered at Stanford University and by the Open Networking Foundation, of which HP is a founding member.

OpenFlow is aimed at reducing the complexity of network devices and automating tasks using simplified network management.

“To help enterprises uniformly manage network traffic flow across the data center, HP became an early innovator of the OpenFlow standard, supporting more than 60 universities and research centers in trials, development efforts and practical real-world applications,�? said Bethany Mayer, senior vice president and general manager, Networking, HP. “With more than 10 million OpenFlow-capable switch ports deployed and the broadest portfolio currently available on the market, HP is leading the move to the OpenFlow standard and further simplifying networks for our enterprise clients.�?

Comcast Signs Multiyear Agreement with Amdocs

Comcast Cable Communications agreed to a multi-year extension of its existing software license and services agreements with Amdocs relating to various offerings in the Amdocs CES (customer experience systems) portfolio. Financial terms were not disclosed.

“Comcast is widely recognized for their industry leadership and we look forward to continuing to serve as a provider of systems and services in support of their operations,�? said Brian Shepherd, Amdocs division president.

U.S. Cellular to Launch LTE Next Month

U.S. Cellular, which serves about 5.9 million mobile users, plans to launch its first LTE markets next month in partnership with King Street Wireless. Initial markets include Milwaukee, Madison and Racine, Wis.; Des Moines, Cedar Rapids and Davenport, Iowa; Portland and Bangor, Maine; and Greenville, N.C. U.S. Cellular is the first wireless carrier to offer 4G LTE in several of these markets. The next wave of market launches will be announced later this month.

The 4G LTE network will cover 25 percent of U.S. Cellular's customers and will coincide with the launch of the Android-powered Samsung Galaxy Tab 10.1 4G LTE mobile tablet, followed shortly by the Samsung Galaxy Aviator 4G LTE smartphone.

King Street Wireless currently holds 700 MHz wireless spectrum in 27 states and is partnering with Chicago-based U.S. Cellular to deliver high-speed 4G LTE service to U.S. Cellular's customers in several of the carrier's markets. King Street Wireless is headquartered in Alexandria, Virginia.

India's Supreme Court Cancels 122 Telecom Licenses for 2G

India's Supreme Court invalidated 122 licenses issued to telecom operators for 2G spectrum after 2008 due to the charges of corruption in the ongoing scandal. A new auction for these quashed 2G licenses will need to be held.

The ruling notes that the subjective process of 2G spectrum allocation in lieu of a public auction violated established procedures and laws, and that the government received only one-sixth of what it would have got had it gone through a fresh auction route.
"The total loss to the exchequer of giving away 2G GSM spectrum in this way – including to the CDMA operators – is over Rs.50,000 crores and is said to be one of the biggest financial scams of all times in the country."http://

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.
  • 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."

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.�?

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.