Ciena Reports Q2 Revenue of $144 Million, Impairment Charge of $455 Million

For its second fiscal quarter ended April 30, 2009, Ciena reported revenue of $144.2 million, compared to fiscal first quarter 2009 revenue of $167.4 million, and $242.2 million for the same period last year. Ciena's net loss (GAAP) for the quarter was $(503.2) million, or $(5.53) per common share. This compares to fiscal first quarter 2009 GAAP net loss of $(24.8) million, or $(0.27) per common share, and a reported GAAP net income of $23.8 million, or $0.23 per diluted common share, for the same period a year ago.


Ciena's GAAP net loss for the fiscal second quarter includes a non-cash charge of $455.7 million for impairment of goodwill, which represents the total book value of the company's goodwill on its balance sheet.


Ciena's adjusted (non-GAAP) net loss for the fiscal second quarter 2009 was $(22.5) million, or $(0.25) per common share. This compares to fiscal first quarter 2009 adjusted (non-GAAP) net loss of $(8.3) million, or $(0.09) per common share, and adjusted (non-GAAP) net income of $42.3 million, or $0.40 per diluted common share for the fiscal second quarter 2008.


"Our fiscal second quarter was particularly challenging, reflecting the difficult macro and industry environment and continued delays in customer spending," said Gary Smith, Ciena's CEO and president. "While recent service providers' public commentary about expected annual capital expenditures has given the industry reason to be more optimistic about the second half of the year, our customers continue to spend cautiously, and as a result, our visibility remains limited. However, based on our direct conversations with customers and supported by trends we are seeing currently in the business, including recently improved order flow, we expect to deliver sequential revenue growth in our fiscal third quarter."http://www.ciena.com/investors

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Intel to Acquire Wind River Systems for Approximately $884 Million

In a bid to grow its processor and software presence outside the traditional PC and server market segments and into embedded systems and mobile handheld devices, Intel agreed to acquire Wind River Systems, a leading supplier of software for embedded processors, for $11.50 per share in cash, or approximately $884 million in the aggregate. Wind River's main products include its VxWorks, a proprietary and multicore-ready real-time operating system, and commercial-grade Linux software platforms. The company also provides design services and software expertise, including custom-built solutions, development tools and device testing products.


Wind River will become a wholly owned subsidiary of Intel and continue with its current business model of supplying software for a range of processors and applications. However, the acquisition is expected to boost Wind River's Intel-architecture focused sales as it gains access to the company's technology investments, brand, employees and global sales force.


Embedded systems and mobile devices include smart phones, mobile Internet devices, other consumer electronics (CE) devices, in-car "info-tainment" systems and other automotive areas, networking equipment, aerospace and defense, energy and thousands of other devices.


Intel said the multi-billion dollar embedded market opportunity is increasingly becoming connected and more intelligent, requiring supporting applications and services as well as full Internet functionality.


"This acquisition will bring us complementary, market-leading software assets and an incredibly talented group of people to help us continue to grow our embedded systems and mobile device capabilities," said Renee James, Intel vice president and general manager of the company's Software and Services Group. "Wind River has thousands of customers in a wide range of markets, and now both companies will be better positioned to meet growth opportunities in these areas."


"Our combination of strengths will be of great benefit to Wind River's existing and future customers," said Ken Klein, Wind River Chairman, president and CEO. "As a wholly owned subsidiary, Wind River will more tightly align its software expertise to Intel's platforms to speed the pace of progress and software innovation. We remain committed to continuing to provide leading solutions across multiple hardware architectures and delivering the same world-class support to which our customers have grown accustomed."http://www.windriver.com
http://www.intel.com

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Juniper and Nokia Siemens Networks Announce Joint Venture for Carrier Ethernet

Juniper Networks and Nokia Siemens Networks will form a joint venture in the Netherlands to address the global Carrier Ethernet Transport market.


The joint venture, which extends a Carrier Ethernet partnership formed earlier this year, will manage and execute the Carrier Ethernet portfolio roadmap of both companies. The interoperable Carrier Ethernet products will target mobile backhaul, business services and residential broadband networks. The planned solution consists of Juniper Networks MX Series Ethernet Services Routers, Nokia Siemens Networks A-series Carrier Ethernet Switches as well as the end-to-end "point-and-click" network management system.


The planned structure of the joint venture will allow both companies to contribute the necessary products and support to enable meeting the end-to-end portfolio needs of some 200 joint service provider customers worldwide. The plans call for the new Carrier Ethernet solution to be sold by both companies. The targeted introduction date is the fourth calendar quarter of 2009, subject to fulfillment of customary closing conditions, such as obtaining necessary regulatory approvals.


"Our planned joint solution has been well-received by our mutual customers. Through the combination of the metro aggregation and metro access and network management strengths of each company, this planned partnership enables both Juniper and Nokia Siemens Networks to bring our joint vision of an extremely efficient, easy to manage unified Carrier Ethernet solution supporting all services on a single network to life," said Bernd Schumacher, head of Broadband Connectivity Solutions business unit, Nokia Siemens Networks.


"With this solution we are expanding the breadth and depth of our relationship with Nokia Siemens Networks," said Kim Perdikou, executive vice president and general manager, Infrastructure Products Group, Juniper Networks. "The combination of Nokia Siemens Networks' leadership in metro access and network management and Juniper's strength in Carrier Ethernet metro aggregation applications will enable our customers to more effectively monetize the network with new revenue-generating services and lower transport costs."


In addition to the collaboration on Carrier Ethernet, Juniper and Nokia Siemens Networks have a long-standing partnership that encompasses IP aggregation, edge and core products and have deployed solutions in more than 200 service provider networks around the world.
http://www.juniper.nethttp://www.nokiasiemensnetworks.com

• Juniper Networks MX-series, which includes the MX960, MX480 and MX240, provides high port-density routing and switching. The MX-series leverages JUNOS software, a single operating system running routing, switching and security platforms from Juniper Networks.



• The Nokia Siemens Networks A-series provides an effective evolution path from the existing TDM networks towards the next-generation Ethernet Transport networks. The A-series provides the SDH carrier-class characteristics over a modern Carrier Ethernet network. Additionally, it enables greater cost-efficiencies by carrying both voice and data traffic with higher traffic volumes at lower costs. The A-series can serve as an access solution located at the customer premises or as an aggregation unit that gathers traffic from different customer networks.

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Dell'Oro: Enterprise VoIP Growth to Slow in 2009

IP lines for the PBX market are forecasted to decline for the first time ever in 2009, according to a new report from Dell'Oro Group. Notwithstanding, VoIP penetration will continue to grow this year, albeit at a slower pace compared to the previous years.


"For 2009, we anticipate a degree of vendor volatility that will cause many customers to stay on the sidelines for a longer period of time than we would expect if downward pressure was coming only from the weakened economy," commented Alan Weckel, Director at Dell'Oro Group. "Also, as customers look to alleviate budget constraints, IP line growth will slow in the short term, putting additional downward pressure on the market. In the current environment, some customers will hold on to existing analog and digital lines for a longer period of time," Weckel added.


According to the report, Cisco, Avaya and Nortel had the most IP line shipments in the quarter. The report also revealed that despite VoIP transforming the industry for over a decade, the IP line shipments for the eight largest vendors in the market, namely Aastra, Alcatel-Lucent, Avaya, Cisco, Mitel, NEC, Nortel and Siemens averaged only 49 percent of total line shipments in the quarter.
http://www.delloro.com

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Qwest Delivers High-Capacity Ethernet for Utah Education Network

The Utah Education Network (UEN) has selected Qwest Communications to provide an advanced, fully managed data networking solution. Under the multi-year, multimillion-dollar agreement, Qwest will connect 21 of the state's 40 school districts to Qwest's statewide fiber-optic network. To date, Qwest has connected 300 of the 450 sites, including elementary schools, middle and high schools and administrative offices. Qwest GeoMax is a super-high-speed, high-capacity, multi-protocol, data networking solution that delivers dedicated 1 Gbps of bandwidth to most K-12 schools over a 10 Gbps backbone.


Headquartered on the University of Utah campus in Salt Lake City, UEN is a not-for-profit education consortium serving public education, higher education and libraries throughout the state. UEN is the largest user of federal E-Rate funds in the state. Sixty percent of UEN's data network is funded through the E-Rate program -- the Schools and Libraries Universal Service Support Mechanism -- with the balance from the state.
http://www.qwest.com
http://www.uen.org

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Belgacom Offers Application Performance Management using Ipanema Platform

Belgacom has launched a new Application Performance Management (APM) service that provides enterprises with greater control of their network and application performance. Specific performance targets can be set for applications based on the business objectiveshttp://www.convergedigest.com/qa655.asp of the company, and controlled across any IP infrastructure. The service allows optimization decisions to be taken globally across the network.


Belgacom is using Ipanema Technologies' platform to deliver the new APM service.


The Ipanema Autonomic Networking System is built out of central software cooperating devices (called ip|engines). The ip|engines are typically positioned inline between the CPE router and the LAN in data-centers and branch office locations. The ip|engines perform a complete range of application traffic management functions including visibility, optimization and acceleration.
http://www.ipanematech.com

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Verizon Business Teams With Westcon on Global Network Support

Verizon Business has entered into a new multiyear global distribution agreement with Westcon Group, a leading specialty distributor of networking, convergence, security and mobility equipment. The deal will help Verizon Business to expand its global logistics reach and provide multinational enterprises with just-in-time delivery of critical communications equipment and services. Westcon will also provide optional configuration and staging services for Verizon Business customers. Specifically, Westcon Group will load software according to customer specifications and then inventory, package and ship the gear for easy deployment.


Verizon Business said the Westcon partnership enhances its global procurement model, which includes cost-effective, simplified contracting, billing and delivery. Verizon Business' existing roster of technology providers includes Avaya, Cisco, Fluke Networks, Juniper Networks, NCR, TANDBERG and Tech Data/Azlan.


Verizon Business noted that it currently manages 270,000-plus security, network and hosting devices across more than 4,000 customer networks spanning 142 countries and territories, overseeing non-Verizon connections from more than 60 network providers worldwide.
http://www.westcongroup.com
http://www.verizonbusiness.com.

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T-Mobile Selects Rohde & Schwarz for Test & Measurement

T-Mobile International has chosen the Rohde & Schwarz group as the exclusive supplier of its standard drive test systems. The contract includes the delivery of R&S ROMES software and associated mobile radio scanners to five European countries. T-Mobile International will use the drive test systems from Rohde & Schwarz to test the transmission quality of channels in its mobile radio networks. This will enable the network operator to ensure interference-free mobile communications coverage. Financial terms were not disclosed.
http://www.press.rohde-schwarz.com.

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Allot Signs Distribution Deal with Exclusive Networks

Allot Communications, which supplies IP service optimization and revenue generation solutions based on deep packet inspection (DPI), has signed a pan-European distribution deal with Exclusive Networks. The agreement is aimed at increasing Allot's access to local resellers and integrators in the European and North African market and creating new opportunities via Exclusive's unique distribution policy model, with a focus on France, UK, Belgium, Switzerland, Maghreb (Morocco, Algeria, Tunisia) and Senegal.
http://www.allot.com/

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