China's Jilin Mobile Comm. Selects Alcatel for NGN

China's Jilin Mobile Communications Company (Jilin MCC) awarded a EUR 50 million contract to Alcatel to deploy a Mobile NGN solution.



Alcatel will deliver its distributed mobile-switching solution based on the Alcatel 5020 Spatial Atrium Softswitch, a multi-standard mobile callserver controlling distributed media gateways.



Jilin Mobile is also expanding its current Alcatel-powered GSM/GPRS
mobile network by deploying the Alcatel Evolium multi-standard end-to-end network infrastructure solution. With previous
GSM expansion already provided to the operator, Alcatel will have increased Jilin Mobile's mobile network capacity by 30 % to serve up to 8 million subscribers.



With the completion of all the projects in September 2006, Alcatel's solution will cover all the cities in Jilin province, including Chuangchun, Jilin, Yanji, Siping, Songyuan, Liaoyun, Baicheng, Baishan and Tonghua. The contract was won through Alcatel Shanghai Bell.

http://www.alcatel.com

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Avici Reports Sudden Jump in Revenue and Profitability

Avici Systems, a supplier of core networking platforms, reported that gross revenue for the three and six-months ended June 30, 2006 was $25.3 million and $46.7 million, respectively, compared to $11.6 million and $22.4 million, respectively, for the three and six-month periods ended June 30, 2005.



Shares in the company closed up 45% on Thursday, making the company's stock the biggest gainer on Nasdaq for the day.



GAAP net income for the six-months ended June 30, 2006 was $2.6 million, or $0.19 per share, compared to a GAAP net loss of $8.3 million, or $0.64 per share, for the six-months ended June 30, 2005.



"Due to a surge and acceleration in demand this quarter's revenue and bottom line results have far exceeded our expectations and resulted in the company turning cash flow positive. We expect to continue to see strong revenue and bottom line results in 2006, but caution that the business conditions driving this increased demand can change significantly. As we have previously announced, we have restructured our business to be profitable at what we believe is a reasonable going forward revenue baseline over the near term in a multi-vendor environment, even though we expect that 2006 will substantially exceed those levels," said Bill Leighton, Chief Executive Officer.

http://www.avici.com

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Motorola and Yahoo! Expand Global Alliance

Motorola agreed to distribute Yahoo! Go for Mobile on tens of millions of new Motorola mobile devices. The Yahoo! Go for Mobile suite enables Yahoo! Mail, Yahoo! Search, Yahoo! Address Book and Yahoo! Local on the mobile device.



As part of the agreement, Motorola will pre-load and prominently feature Yahoo! Go for Mobile on optimized handsets worldwide starting in the first half of 2007, giving consumers quick and easy access to their Internet content and services. The devices will be available to consumers in a number of markets across the Americas, Europe, and Asia.

http://www.motorola.comhttp://www.yahoo.com

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PMC-Sierra Reports Q2 Revenue of $118.8 Million

PMC-Sierra reported Q2 revenue of $118.8 million, an increase of 35% compared with $87.8 million in the first quarter of 2006 and 66% higher than in the second quarter of 2005. Net revenues in the second quarter of 2006 included: (i) $8.8 million in revenue from the previously announced acquisition of Passave Inc., which closed on May 4, 2006; and (ii) a full three months of revenue from the acquisition of the Avago storage semiconductor business compared with only one month of revenue from this acquisition in the first quarter of 2006.



Net income in Q2 on a non-GAAP basis was $19.4 million (non-GAAP diluted earnings per share of $0.09) compared with non-GAAP net income of $16.3 million (non-GAAP diluted earnings per share of $0.08) in the first quarter of 2006. GAAP net loss in Q2 was $31.3 million (GAAP loss per share of $0.15) compared with GAAP net loss in the first quarter of 2006 of $14.3 million (GAAP loss per share of $0.08).



"In the second quarter, we successfully integrated the Avago storage semiconductor business into PMC's operations and we also closed the acquisition of Passave Inc., the leader in Fiber To The Home semiconductor solutions," said Bob Bailey, chairman and chief executive officer of PMC-Sierra. "And our Enterprise Storage business showed strength in the second quarter as the Fibre Channel transition from 2Gb/s to 4Gb/s has accelerated."http://www.pmc-sierra.com

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Gizmo Project Offers "All Calls Free" to 60 Countries

SIPphone, developers of the free Gizmo Project Internet calling software, launched an "All Calls Free" program giving its users unlimited free calling to landlines and mobile phones of other active Gizmo Project users in 60 countries around the world.

People who wish to participate need to download Gizmo Project softphone clients, sign up for a free account and add their friends, family and business contacts to their Gizmo Project Contact list. Callers can then call their Contacts on their mobile phones, landlines or Gizmo Project for free. There is no cost to sign-up and the program is open.

To be eligible for All Calls Free, users have to log in to their account and make a call using Gizmo Project to attain "active" status. Thereafter, calls to other active Gizmo Project users in select countries will be free. Active users are those people who regularly use Gizmo Project to make calls to other Gizmo Project users (on a PC) or to any landline or mobile phone.

http://www.gizmoproject.com/allcallsfree

• In July 2005, The Gizmo Project, a free VoIP service developed by Michael Robertson and his team at SIPphone, released the first public beta of its consumer VoIP software. Robertson's previous start-ups have included MP3.com, Linspire, SIPphone and most recently MP3tunes.com.



• Unlike Skype, Gizmo is based on SIP and follows a standards-based approach to its network and directory.



• In January 2006, SIPphone and Google Talk became the first major instant messaging networks to launch complete compatibility between their user bases.

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Siemens' SURPASS Softswitch Supports Cablevision's One Million Customers

Cablevision Systems is using Siemens' SURPASS Softswitch for its Optimum Voice service. Earlier this week, Cablevision announced that it has passed the one million customer milestone for the cable VoIP service.



Siemens' SURPASS platform supports multiple network configurations and has the capacity to support up to 150,000 subscribers in a single softswitch.



In July 2006, Siemens reached the 5 million mark for licenses sold for its SURPASS softswitch, which has been deployed by other U.S. service providers, as well as by service providers across the globe. International customers include Shaw Cable in Canada, Multimedios in Mexico, and UPC, Com Hem, Casema and Essent in Europe.

http://www.siemens.com

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Covad Selects Samsung for ADSL 2+ Network Buildout

Covad Communications announced progress in its plans to deploy the largest ADSL 2+ network in the U.S. by the end of 2006. This phase of the build-out covers Atlanta, Chicago, Los Angeles, New York, Miami, Philadelphia, San Diego and Washington, DC, joining San Francisco, San Jose, Seattle and Dallas, where Covad's next generation network is already in service.

By the end of 2006, Covad will offer line powered voice access, and have the capability to offer higher-speed broadband access, such as ADSL 2+ and G.SHDSL, and new business-class services such as metro Ethernet and bonded T1.

Covad has chosen Samsung as its network equipment provider, and is now the vendor's largest North American customer of network equipment. http://www.covad.com

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Zhone Posts Q2 Revenue of $54.2 Million

Zhone Technologies posted Q2 revenue of $54.2 million compared with $52.7 million for the first quarter of 2006 and $30.4 million for the second quarter of 2005. Net loss for the second quarter of 2006 (GAAP) was $13.1 million or $0.09 per share compared with a net loss of $3.9 million or $0.03 per share for the first quarter of 2006, and a net loss of $3.4 million or $0.04 per share for the second quarter of 2005.



"Despite the sequential quarterly growth of our SLMS and optical businesses and increase in our cash balances, the second quarter was hampered by a greater than expected decline in legacy revenues as well as the significant drop in gross margins caused largely by the write-off of inventory in some of our legacy products," said Mory Ejabat, Chairman and Chief Executive Officer of Zhone. "We hope to improve our gross margins in the future through cost reductions driven by outsourced manufacturing of certain products."http://www.zhone.com

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Nokia Ships 78.4 million Mobile Devices in Q2, up 4% sequentially

Nokia shipped 78.4 million mobile devices in Q2, up 4% sequentially and up 29% year on year out of an estimated industry-wide global market of 230 million units. Nokia's estimated device market share for Q2 was 34%, down from 35% in Q1 2006 and up from 33% in Q2 2005. The average selling price per device was EUR 102, down from EUR 103 in Q1 2006.



"During the second quarter Nokia made two significant strategic announcements. We stated our intention to restructure our CDMA business, following the decision not to proceed with the proposed CDMA company with Sanyo. Once completed, this restructuring is expected to have a positive impact on Nokia's operating margin. In addition, Nokia and Siemens announced a definitive agreement to merge Nokia's Networks business group and Siemens' carrier-related operations into a new company, creating a powerful leader in the wireless and wireline carrier market," said Olli-Pekka Kallasvuo, Nokia CEO.

http://www.nokia.com

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AT&T Signs Content Deals with MTV Networks and BET Networks

AT&T signed distribution agreements with MTV Networks and BET Networks covering linear, high-definition, on-demand and digital music programming as part of the AT&T U-verse TV channel lineup. AT&T U-verse TV is delivered by Project Lightspeed. Financial terms were not disclosed.

http://www.att.com

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Limelight Revenues Jump 40% in Q2 over Q1

Limelight Networks, a privately-held content delivery network for digital media, said its Q2 revenue rose to over $14 million, an increase of nearly 40% from the first quarter of 2006 and over 200% from the same quarter last year. The latest period marks the company's 11th consecutive quarter of net income profitability.



Limelight's customer base grew to more than 600 customers, up from less than 500 at year end 2005.

http://www.llnw.com

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Cingular Wireless Reaches 57.3 million, Lower Churn

Cingular Wireless reported record net income for the second quarter of $540 million, which is a year-over year increase of 267%. Some highlights from the quarter:

• Gross additions were 4.4 million, which compares to 4.3 million in the year-ago second quarter and to 4.7 million in the first quarter of 2006. The company reported 1.5 million net adds, which compares to 952,000 in the year-ago second quarter and to 1.7 million in the first quarter of 2006. Of the net adds, more than 1 million were postpaid customers, which is a year-over-year improvement of 9 percent and a sequential improvement of 16 percent.



• Cingular ended the second quarter of 2006 with 57.3 million cellular/PCS subscribers, which is a year-over-year increase of 5.9 million.



• Cingular's data ARPU was $5.77, up more than 38 percent over the year-ago second quarter and 11 percent sequentially. Data ARPU per postpaid customer was nearly $6.60.



• During Q2, 98 percent of minutes were carried on Cingular's GSM network and 92 percent of the company's subscriber base was GSM-equipped.



• ARPU was $48.84, down 3.3 percent from the year-ago second quarter (when ARPU declined 5.4 percent year over year on a Pro Forma basis) but up 0.7 percent compared to the first quarter of 2006.



• Q2 revenues were $9.2 billion, an improvement of 7.1 percent over revenue for the year-ago second quarter and 2.7 percent compared to the first quarter of 2006.



• Q2 CAPEX was $1.582 billion, driven by ongoing merger integration; improvements in network coverage and quality; and the continued introduction of Cingular's UMTS/HSDPA 3G technology in markets around the country including, most recently, Atlanta, San Antonio, Gary, Ind., and the initial phase of rollout in New York City.

http://www.cingular.com

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Broadcom Reports Revenue of $941.1 million, up 56% YoY

Broadcom reported record revenue for the second quarter of 2006 of $941.1 million, an increase of 4.5% from the $900.6 million reported for the first quarter of 2006 and an increase of 55.6% from the $604.9 million reported for the second quarter of 2005.



Broadcom said that due to the pending equity award review and restatements, it appears unlikely that it will be able to file its Quarterly Report on Form 10-Q for the period ended June 30, 2006 with the SEC by the due date of August 9, 2006.



The company does not expect to be in a position to announce additional financial results for the second quarter until its Audit Committee and Ernst & Young LLP have completed their equity award reviews and audit procedures, respectively, appropriate accounting adjustments and restated financial statements have been finalized for the first quarter of 2006 and prior periods, and amended Reports on Forms 10-K and 10-Q have been filed with the Securities and Exchange Commission (SEC) for the periods ended December 31, 2005 and March 31, 2006, respectively.

http://www.broadcom.com

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Level 3 to Sell Software Subsidiary for $287 Million

Level 3 Communications agreed to sell its wholly owned subsidiary, Software Spectrum, to Insight Enterprises, for $287 million payable in cash at closing. Software Spectrum is a leading reseller of business software and mobility solutions to large- and medium-sized organizations.



Insight Enterprises is a leading provider of information technology products and services.



"Level 3's communications business is presenting numerous investment and growth opportunities. The proceeds from the sale of Software Spectrum will increase Level 3's ability to pursue those opportunities that are more central to our communications business," said Charles C. Miller III, vice chairman of Level 3.

http://www.Level3.com

• In May 2002, Level 3 Communications agreed to acquire Software Spectrum, a global business-to-business enterprise software services provider, for $37 per share in cash. The deal is valued at approximately $115.7 million. Software Spectrum, which is based in Dallas, Texas, provides enterprise software management and contact center solutions.

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Brocade's Former CEO Faces Criminal/Civil Charges over Options Pricing

The United States Attorney's Office for the Northern District of California, the Securities and Exchange Commission, and the Federal Bureau of Investigation (FBI) criminal and civil securities fraud charges against Gregory L. Reyes, the former CEO, President, and Chairman of Brocade Communications Systems, Inc., and Stephanie Jensen, its former Vice President of Human Resources, alleging that the two routinely backdated stock option grants to give employees favorably priced options without recording necessary compensation expenses.



Brocade Communications Systems, which is based in San Jose, California, offers a line of "SilkWorm" SAN switches that connect servers with storage devices.



The actions, which are among the first cases involving manipulation of stock option grants in violation of the federal securities laws and other criminal statutes, are the result of 18-month investigations by the Commission and the FBI.



According to the criminal complaint and the Commission's civil complaint, Reyes, 43, of Saratoga, Calif., and Jensen, 48, of Los Altos, Calif., regularly caused Brocade to grant "in-the-money" options (i.e., the exercise price is below the stock's market price on the day of grant, giving the recipient an immediate paper gain) to both new and current employees between 2000 and 2004, but backdated documents to make it appear that the options were "at-the-money" (i.e., the exercise price is the same as the stock's market price on the day of the grant) when granted, thus concealing millions of dollars in expenses from investors. Under well-settled accounting principles applicable at the time, options granted "at-the-money" did not need to be expensed. In contrast, options granted "in-the-money" needed to be recorded as a compensation expense.



The separate criminal and civil complaints allege that Reyes repeatedly used hindsight to select a date with a lower stock price from the recent past as the supposed option grant date.



According to the SEC, in order to facilitate the scheme, Jensen created, or directed others to create, paperwork making it appear that the options had been granted on the earlier date. In some instances, employment offer letters and compensation committee minutes were falsified and purported to document option grants to employees before they had even been hired by the company. As a result of this practice, Brocade was able to give employees "in-the-money" stock options without having to recognize compensation expenses as required by accounting rules. When these stock option abuses surfaced, Brocade was required to restate and revise its financial statements for fiscal years 1999 through 2004.



Brocade issued a statement saying it has no comment with respect to the former executive officers. It also noted that it has taken a number of steps to strengthen disclosure controls and procedures, and internal control over financial reporting, including personnel and executive changes and procedural changes to improve the stock option granting and employee change in status processes. No executive officers involved in the historical stock option granting practices remain employed with Brocade.

http://www.sec.gov/news/press/2006/2006-121.htmhttp://www.brocade.com

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