ECI Telecom Reports Revenue of $153 Million, up 26% YoY

ECI Telecom reported Q2 revenues of $153 million, a 26% increase from $121 million in the second quarter of 2004 and compared with $145 million in the first quarter of 2005. Net income was $15.6 million, or $0.13 per share on a fully diluted basis.


Some highlights:

• Revenues for the Broadband Access Division, at $63 million for the quarter, were up 24% from a year ago and unchanged from last quarter.



• Revenues for the Optical Networks Division increased 34% from a year ago and reached $82 million for the quarter, compared to $77 million in the first quarter of 2005.



• Following the $88 million all-cash acquisition of Laurel Networks, ECI's cash, including short and long term deposits and marketable securities, now totals $214 million, or $1.82 per share.

Commenting on the results, Doron Inbar, President and CEO said, "We are pleased to report yet another quarter of strong growth and solid profits, as ECI continues to demonstrate leadership in its markets, which remain among the fastest growing sectors in telecom.

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Telefónica Reaches 4.0 million Retail ADSL Lines

As of 30-June-2005, the Telefónica Group was serving 4.0 million retail ADSL lines in Spain, Latin America and the Czech Republic, an increase of +57.6% over last year. Telefónica's retail ADSL accesses in Spain rose to 2.3 million (+41.8% vs. June 2004), representing an estimated market share of 54.1% of the total broadband market. In Latin America, retail ADSL accesses stood at 1.7 million and grew by 70.9% over the same period last year, highlighting Telesp, with almost one million ADSL access lines (exceeded during July).


Telefónica Moviles reported strong growth across all its markets. Net adds were of 5.4 million for the quarter vs. more than 3 million in January-March of 2005, bringing its managed customer base to 86.5 million. Of the total customer base, 63.7 million corresponded to the Latin American operators, 19.4 million to Telefónica Moviles España and more than 3.4 million to Medi Telecom.


Revenues for the first half of 2005 amounted to EUR 17.359 billion , 20.0% higher than the same period in 2004. Revenues from Spain represented 55.4% of consolidated revenues, a decrease of a 6.8 percentage points over the same period in 2004. In turn, the contribution from Latin America increased to 40.6% (33.0% a year ago) due to the acquisition of the BellSouth Latin American operators. Brazil maintains its revenue contribution up to 17.4%.
http://www.telfonica.es

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Softbank BBTV Secures IPTV with NDS Content Protection

Softbank's newly launched BBTV service in Japan has deployed NDS' content protection system integrated with UTStarcom's IPTV headend system, set-top box and electronic program guide.


BBTV is using NDS's "Synamedia" software suite at the head-end and NDS smart cards in subscriber set-top boxes (STB).

BBTV will deliver more than 40 channels through STBs, offer a sophisticated electronic program guide, and provide access to more than 5,200 VOD titles.

NDS said this new contract further enhances its IPTV solution following deployments by Sistema in Russia, AUNA in Spain, CYTA in Cyprus, and recent announcements with Viasat in Sweden and SuperSun in Hong Kong. Financial terms were not disclosed.


Softbank BB's triple play service will be available in several service tiers, with pricing starting at 4540 Yen, approximately US$40.00 per month.
http://www.nds.com
http://www.bbtv.com/

• NDS is a majority-owned subsidiary of News Corporation.

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Portugals' Optimus Deploys Motorola's Push-To-Talk over Cellular (PoC)

Motorola announced the deployment of a Push-To-Talk over Cellular (PoC) network for Optimus in Portugal. Optimus' subscribers will initially have a choice of PoC handsets; the Motorola V400p and Symbian Series 60 devices with the Motorola PoC Client. Each Motorola handset delivers a distinct 'walkie-talkie' experience, including one-touch access to presence-enabled phone contacts, giving subscribers flexibility and speed in how they communicate.


The PoC deployment further develops Motorola's relationship with Optimus, following Motorola's successful 3G network deployment for the operator in 2004.

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WebEx Sees 23% Increase in Q2 Revenues over Last Year

WebEx Communications reported Q2 revenues of $75.3 million, a 23% increase from $61.1 million in the second quarter of 2004. Net income was $13.9 million, a 35% increase from $10.3 million in the second quarter of 2004. Diluted earnings per share, ("EPS") were $0.29, an increase of 32% from $0.22 in the second quarter of 2004.


"We had another good quarter, demonstrating the expanding market for collaborative application services," said Subrah Iyar, chief executive officer of WebEx. "As companies realize the huge cost advantages of on-demand solutions, we continue to see new customer requirements like the WebEx Retention Solution we announced during second quarter."http://www.webex.com/

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Alcatel Revenues Rise 8.5% YoY to EUR 3.145 Billion

Alcatel reported Q2 revenues of EUR 3.145 billion, an increase of 8.5% at a current EUR/US$ exchange rate (an increase of 10.7% at a constant EUR/US$ exchange rate). Net income (group share) amounted to EUR 196 million, or a diluted EPS of EUR 0.14 (US$ 0.17 per ADS).

Some highlights from the quarter:

• The gross margin was registered at 35.6%



• Operating profit amounted to EUR 263 million, representing an 8.4% operating margin.



• Fixed communications revenues in Q2 decreased by 6.2% to EUR 1.224 billion from EUR 1.305 billion in the same period last year. The company cited good momentum in optical transmission and IP routing driven by a ramp in Triple Play deployments. The decrease in the segment's revenues is primarily due to the continued drop in traditional TDM switching, as well as some decline in broadband access revenues compared to the particularly solid second quarter 2004 in North America.



• Volumes in DSL lines reached 5.9 million during the second quarter registering a market share gain and a return to the historical market position, with strength in Europe and China. The IP DSLAM continued to drive revenues with substantial volume deliveries during the quarter, while the market transitions to ADSL2plus technology.



• Mobile communications revenues in Q2 increased by 34.6% to EUR 958 million from EUR 712 million in the same period last year, with growth across all product lines. Alcatel said emerging markets continued to be dynamic and hybrid 2G/3G infrastructure revenues were driven by activity in Brazil, Nigeria, Russia, and China. A new radio WCDMA customer was registered in the Middle East, confirming that a number of emerging countries are moving to 3G technologies.



• Alcatel saw momentum continuing to build in next generation solutions, such as NGN-IMS core, where two flagship contracts were won in Western Europe and SE Asia. Over 20 trials with new customers have now been registered.



• Mobile applications recorded significant growth with strong volumes in payment applications where the market is shifting to full converged payment solutions. Market traction was registered in video/music services where Alcatel now has over 60 customers.



• Private communications revenues in Q2 increased by 6.5% to EUR 981 million compared with EUR 921 million in the same period last year. In the enterprise market, revenues bounced back more than expected after a slow start at the beginning of the year and voice services grew, especially in Eastern and Northern Europe.



• IP telephony continued to register a strong progression, representing more than a third of the total shipments. Genesys again turned in a solid performance.

Serge Tchuruk, Chairman and CEO, summarized the Board's observations:


"Second quarter results came in above expectations. Sales were higher than anticipated in all three business segments. In particular, the mobile communication business grew around 30% year over year for the second quarter in a row, with a return to double digit profitability, confirming the strength of our product offering and regional strategy. While the fixed communication business continued to shrink as expected during the quarter, our market dynamics clearly point towards the forecasted rebound in the second half. We are also pleased by the return to growth of our private communication business, despite the weakness associated with the low cycle in space activities."


"We continue to operate in a competitive environment leading to pricing pressure. With product cost improvements offsetting price trends, our gross margin has been stabilizing for the last three quarters. "

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Sprint to Support Comcast's Digital Voice

Sprint announced an arrangement with Comcast to provide connectivity between traditional phone providers and Comcast Digital Voice in select markets. This deal represents Sprint's continued expansion into the cable market. http://www.sprint.com

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BellSouth Adds Security Apps to DSL Service

BellSouth announced a number security applications designed to help keep residential and small business customers safe while online and their PCs free of spyware, viruses and tracking cookies.


BellSouth FastAccess DSL customers can add the following security applications: BellSouth Anti-Virus; BellSouth Anti-Spyware; and BellSouth Firewall.


BellSouth customers who wish to secure one computer can order individual software products for $2.99 per month, or the entire suite of three products for $6.99 per month. For customers with two to four computers, the cost to order individual products is $4.99 per month, or $11.99 per month for the entire suite. Business customers with up to 10 computers can purchase individual products for $12.99 per month, or the entire suite for $24.99 per month.

http://home.bellsouth.net/security

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Verizon Seeks Video Franchise in Fairfax County

Verizon has submitted a cable franchise application to the Fairfax County Board of Supervisors, which is required before Verizon can begin to offer cable services in this county of Virginia. At its Aug. 1 meeting, the board will consider authorizing publication of the proposed franchise agreement and a Sept. 26 public hearing to consider adopting the franchise.


"We have negotiated a strong, fair agreement that paves the way for more competition in one of the nation's most technology-rich markets," said Robert W. Woltz Jr., Verizon Virginia president. "If you were impressed by the changes Verizon Fios Internet Service forced cable companies to make to their cable-modem offerings, wait until you see how Fios TV improves cable competition in the region."http://www.verizon.com

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TELUS Selects Alcatel's Ethernet-IP Service and Network Architecture

TELUS, the largest service provider in western Canada, will use key Alcatel technologies to support its build of a next generation Ethernet-IP service and network architecture.


TELUS plans to deploy Alcatel's Intelligent Services Access Manager (ISAM) solution to expand its broadband access coverage and to increase the subscriber bandwidth. The Alcatel 7302 ISAM and 7330 ISAM Fiber to the Node (FTTN) will enable 20 Mbps to the end customer, with speeds in excess of 40 Mbps where ADSL2+ bonding is employed, and over 50 Mbps using VDSL2. These access rates will enable TELUS to market new advanced broadband services to consumer and business markets.


TELUS will also deploy the Alcatel 7450 Ethernet Service Switch platform to deliver new Ethernet-IP services. Financial terms were not disclosed.
http://www.alcatel.com
http://www.telus.com

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NETGEAR Reports Revenue of $107.6 million, a 21.7% YoY

NETGEAR reported Q2 revenue was $107.6 million, a 21.7% increase as compared to $88.4 million for Q2 2004. Revenue for the first quarter of 2005 was $109.0 million. Net revenue in the second quarter of 2005 derived from North America was $55.2 million; the Europe, Middle East and Africa, or EMEA, region was $ 40.4 million; and, the Asia Pacific region was $12.0 million. Net income (GAAP) was $8.3 million or $0.26 per basic share and $0.25 per diluted share.


Patrick Lo, Chairman and Chief Executive Officer of NETGEAR, commented, "We had a strong second quarter driven by the success of some new products; such as, our RangeMax family of MIMO Wi-Fi products. NETGEAR introduced a record 17 new products in the second quarter."http://www.netgear.com

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Taiwan's Chunghwa Telecom Launches 3G with Nokia

Chunghwa Telecom launched its 3G service in Taiwan using a WCDMA 3G network deployed by Nokia. Among the 3G services that Chunghwa will offer are 3G video call, 3G movie/TV channel and "Music station" entertainment services. Nokia served as the sole 3G network supplier to Chunghwa. Nokia provided Chunghwa with both 3G core and radio-access network equipment, including RNC, UltraSite, and MetroSite base stations as well as operator and care services. Chunghwa is Nokia's one of the world's first customers to implement 3GPP Rel'4 architecture.


Nokia has been working with Chunghwa Telecom since 1999, having supplied the operator's GPRS core network, multimedia messaging solution (MMS) and ADSL in addition to the WCDMA system.
http://www.nokia.com

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