Wednesday, April 9, 2003

Foundry Networks Sees Growth in Q1 Results

Based on preliminary data, Foundry Networks expects net revenue for the quarter ended 31-March-2003 to be in the range of $89.0 million to $91.0 million, compared to $86.7 million for the previous quarter. The company also expects earnings per share for the first quarter will be in the range of $0.09 to $0.11. The company noted a book-to-bill ratio greater than 1.0 for the quarter and reported significant strength in federal government sales. Full results are expected 23-April-2003.
http://www.foundrynetworks.com

AMCC Announces Reduction in Workforce

Citing continued softness in its markets, Applied Micro Circuits Corporation (AMCC) announced another round of job cuts. At the beginning of 2003, AMCC had 912 employees in its worldwide workforce. By the end of 2003, it now anticipates having approximately 626 employees, a 31% reduction. The realignment, combined with consolidation of certain facilities and the previously announced closure of AMCC's wafer fab will reduce ongoing operating expenses by $35-40 million annually and fixed cost of sales overhead by $15-17 million annually.
http://www.amcc.com

Nokia Networks Announces Staff Reductions

Nokia Networks, the infrastructure arm of Nokia, will eliminate 1,800 staff positions as part of cost-cutting measures. Up to 1100 of the 1800 planned personnel reductions will be in Finland, while the remainder will be divided among other countries. The reductions will be made in R&D, operations, sales and marketing and in support functions. The company said it is determined to continue a leadership strategy in mobile networking.
http://www.nokia.com

Juniper Networks Report Q1 Revenue of $157.2 million

Juniper Networks reported first quarter revenue of $157.2 million, compared with $122.2 million for the same period last year and $155.3 million for Q4 2002. GAAP net income for the first quarter was $3.7 million or $0.01 per share, compared with a net loss of $46.0 million or $0.14 per share in the first quarter of 2002. Juniper's CEO, Scott Kriens, described the quarter's financial performance as "solid."http://www.juniper.net

Covad Adds 35,000 Net lines in Q1

Covad Communications added 35,000 net lines in Q1, bringing total lines in service on 31-March-2003 to more than 417,000 lines. Customer disconnections, or churn, averaged approximately 3.6% percent in the first quarter. Churn for the first quarter was affected by the migration of subscriber lines from a customer, Network Access Solutions (NAS), which is in bankruptcy proceedings. However, in January 2003, the bankruptcy court approved a transaction that provided Covad with the right to solicit customers previously served by NAS. Covad expects its churn rate will be reduced. The company ended the quarter with $178 million in cash.
http://www.covad.com

ITXC Rejects IDT's Acquisition Bid

The ITXC Board of Directors rejected IDT's acquisition proposal saying the offer was not in shareholders' best interests. ITXC noted that its cash and cash equivalents were approximately $1.70 per share at the end of the Q1 2003 and that its net book value per outstanding share exceeded $2.65 per share on 31-March-2003. Moreover, the company said its proprietary technology gives it a strategic advantage in international VoIP. ITXC Chairman and CEO Tom Evslin described the offer as "totally unacceptable." The ITXC Board also approved a Shareholder Rights Plan and declared a dividend of one Right on each outstanding share of ITXC common stock.
http://www.itxc.net

IDT Proposes to Acquire ITXC

IDT Corporation publicly announced a proposal to acquire ITXC Corp. in a stock-for-stock transaction that would provide a 15% premium to the stockholders of ITXC, based on the closing price of ITXC's common stock on 09-April-2003, which was $1.22. IDT said a merger could provide the sufficient scale for ITXC's operations to become cash flow positive much sooner than if it were to remain a separate company.
http://www.idttelecom.com
  • On 25-February-2003, IDT publicly announced a bid to acquire Global Crossing that would “at least�? match the offer submitted last August by the Hong Kong-based conglomerate Hutchinson Whampoa Ltd and state-controlled Singapore Technology Pte Ltd. The offer was rejected.


  • In July 2002, IDT announced unsolicited (and unsuccessful) bids to acquire two units of WorldCom: its MFS and Brooks Fiber units and its MCI consumer and small business long distance units. IDT valued the combined bids at $5 billion.

  • In December 2001, IDT acquired Winstar Communications for $42.5 million ($30 million in cash and $12.5 million in IDT Class B Common Stock). Other IDT acquisitions include major equity interests in Net2Phone and Talk America Radio Network.

Intersil Unveils Chip for Wireless AP + Router Designs

Intersil introduced a new WLAN access point chipset that eliminates the requirement for a separate network processor. The new design incorporates the functionality for 802.11g and includes an ARM9 microprocessor core. It could be used for AP and router implementations with either single port or multi-port Ethernet PHYs, and it supports Power over Ethernet (PoE).
http://www.intersil.com

BellSouth Deploys Alcatel DSLAMs in all South Carolina Cos

Alcatel will provide its 7300 ASAM DSL equipment to BellSouth to enable 100% DSL coverage for all of BellSouth's central offices in the state of South Carolina. BellSouth said actions taken by the South Carolina state legislature have created a favorable environment for the network expansion. Financial terms were not disclosed.
http://www.alcatel.com
http://www.bellsouth.com

National Broadband to Build Wireless along WilTel's Fiber Routes

National Broadband, a start-up carrier based in Aspen, Colorado, unveiled plans to rollout out wireless broadband services to communities along the fiber network footprint of WilTel Communications. Using both licensed and unlicensed spectrum, National Broadband will deploy a master base station at each of 422 optical regeneration stations, which are located at 40 mile intervals along the nationwide WilTel fiber network. At each of the stations, National Broadband will install a customized optical switch from MRV Communications that is capable of adding/dropping up to 1 Gbps of traffic onto the network. WilTel is providing two fibers to National Broadband for its exclusive use in the deployment. National Broadband uses point-to-point radios to serve regional ISPs, cable companies, independent telcos and large businesses. It also plans to offer point-to-multipoint residential services in some areas. National Broadband also plans to differentiate its network by deploying a new generation of "content processors" from Tariri (an Intel spin-out), telco servers from IBM, and Microsoft 2003 Servers with .NET capabilities. The network will have over 1 petabyte of local storage capacity at start-up. The Tarari processors will offload computationally intense security and media functionality from end-user devices. The .NET functionality will support forthcoming media and presence applications from Microsoft and others.
http://www.nationalbroadband.com

Korea Telecom Offers DSL+WLAN Access, 8,500 Hotspots Now in Service

With broadband already at high penetration rates throughout South Korea, service providers are rapidly evolving their networks to offer differentiated services, said Dr. Won-sic Hahn, Managing Director, Fixed-Mobile Convergence Business Department, KT (Korea Telecom), speaking at the Broadband Wireless World 2003 conference in San Jose, California. KT has introduced a new consumer service that combines home DSL access with WLAN connectivity. For an additional monthly fee, the "NESPOT" service provides DSL subscribers with a home wireless LAN as well as unlimited access to KT's public hotspots. The user is provided with a single ID and password for both home connectivity and the public hotspots. KT already has 8,500 hotspots in operation across Korea in cafes, subway stations, airports, hospitals, school campuses and stores. Private companies are also encouraged to offer the service in their public lobbies. KT plans to have 16,000 WLAN hotspots in service by the end of 2003. KT currently has about 166,000 subscribers for the service and is adding about 1,500 new users per day. NESPOT subscribers can use Internet phone and messaging services. Rival Hanaro Telecom and others are launching their own hotspots services. South Korea currently has about 32 million mobile phone subscribers, of which 24 million use mobile Internet service. Dr. Hahn said a new opportunity exists for bridging traffic and subscribers from the 2.5/3G network to the public WLAN infrastructure. KT is working on a single-password "NESPOT Swing" service that enables advanced mobile phones and PDAs to seamlessly access either the CDMA 1xEVDO infrastructure or WLAN hotspots. The service is likely to be used for downloading video clips, music, photos, e-books and maps. KT hopes to have 124,000 NESPOT Swing users this year, growing to 3.6 million by 2005.
http://www.koreatelecom.com