Thursday, November 5, 2020

American Tower to acquire InSite, adding 3,000 communication sites

American Tower agreed to acquire InSite Wireless Group, which owns, operates and manages approximately 3,000 communications sites, primarily in the U.S. and Canada, for approximately $3.5 billion.

Insite's portfolio includes more than 1,400 owned towers in the U.S., over 200 owned towers in Canada and approximately 70 distributed antenna system (“DAS”) networks in the U.S. In addition, InSite controls more than 600 land parcels under communications sites as well as approximately 400 rooftop sites.

Tom Bartlett, American Tower’s Chief Executive Officer stated, “This transaction augments our foundational U.S. business through the addition of a well-run, high-quality, complementary, macro-tower focused portfolio, while also marking our entry into Canada. We believe that these assets are positioned to enhance our organic growth and cash flow trajectory in the future as 5G deployments accelerate and densification initiatives progress.”

“Nearly two decades ago, we set a goal to build a leader in wireless communications by providing critical infrastructure to wireless carriers and other customers,” said David E. Weisman, co-founder and CEO of InSite. “On behalf of InSite, I want to thank our customers, employees, and investors for their support and partnership over the years in building InSite into where it is today. We believe the acquisition of InSite by American Tower will result in even greater benefits for our customers in the future.”

American Tower expects the assets to generate approximately $150 million in property revenue and approximately $115 million in gross margin in their first full year in its portfolio.

  • American Tower currently controls a portfolio of 181,000 communication sites.

T-Mobile US now has 100 million mobile customers

T-Mobile US crossed the 100 million customer milestone, surpassing AT&T to become the No.2 largest mobile operator in the U.S. The milestone comes 7 months after its acquisition of Sprint.

Highlights for the quarter:

  • Net customer additions were 2,035,000 in Q3 2020, a record-high and the 23rd consecutive quarter of industry-leading performance in this category. The total customer count increased to a record-high of 100.4 million.
  • Postpaid net customer additions were 1,979,000 in Q3 2020, a record-high and the 11th consecutive quarter of industry-leading performance in this category.
  • Postpaid phone net customer additions were 689,000 in Q3 2020, leading the industry and marking the 27th consecutive quarter of leading the national carriers. Postpaid phone churn was 0.90%.
  • Postpaid other net customer additions were 1,290,000 in Q3 2020, leading the industry and nearly double Verizon and AT&T combined as T-Mobile for Business continued to connect educational institutions during COVID-19.
  • Prepaid net customer additions were 56,000 in Q3 2020 and prepaid churn was 2.86%.
  • Total service revenues increased year-over-year to $14.1 billion in Q3 2020, driven by the Sprint merger and continued customer growth.
  • Total revenues increased year-over-year to $19.3 billion in Q3 2020, driven by the Sprint merger and continued customer growth.
  • Net income increased year-over-year to $1.3 billion in Q3 2020, as revenue growth outpaced expense increases. Merger-related costs were $288 million pre-tax and $208 million, net of tax, in Q3 2020.
  • EPS was relatively flat year-over-year at $1.00 in Q3 2020, as growth in net income was offset by a higher number of outstanding shares as a result of the Sprint merger.

Russia's Yandex upgrades Moscow DCI network with ADVA

Yandex, Russia's leading search engine, has deployed the ADVA FSP 3000 TeraFlex to upgrade its data center interconnect (DCI) transport network to 600 Gbps.

Yandex’s Moscow data centers are now connected in a point-to-point network with ADVA’s high-density TeraFlex terminal. Serving 36 bidirectional 100GbE client ports, the 1RU solution injects new levels of channel capacity and spectral efficiency into Yandex’s network. Built specifically to maximize fiber utilization, TeraFlex features software-defined fractional QAM modulation capabilities. This enables it to leverage different modulation formats and optimize all optical paths over any distance.

The ADVA FSP 3000 TeraFlex was plugged into Yandex’s existing line system. The terminal supports 600 Gbps over a single wavelength and delivers a total duplex capacity of 3.6 Tbps in one rack unit. 

“We’re proud of what our FSP 3000 TeraFlex technology is helping Yandex achieve. Without the effort or expense of a complete system upgrade, it’s enabled one of Russia’s biggest technology companies to transform its infrastructure. By unlocking the full value of its fiber assets, Yandex is opening the door to further growth and innovation,” commented Hartmut Müller-Leitloff, SVP, sales, EMEA, ADVA. “Our TeraFlex™ has a large degree of configuration flexibility, using different modulation formats and software-defined fractional QAM to optimize data rate transmission performance. Together with its plug-and-play simplicity, TeraFlex™ made it easy for Yandex to transform its existing DCI infrastructure.”

“We’re helping Yandex to massively expand the capacity of its network and accommodate ever-increasing traffic demands. Our TeraFlex terminal is ensuring that one of Russia’s leading technology companies can meet its customers’ expectations and continue growing its business well into the future,” said Stephan Rettenberger, SVP, marketing and investor relations, ADVA. “Tens of millions of people rely on Yandex’s products and services on a daily basis. That’s why it’s a company keen to deliver even more by leveraging the most advanced technology on the market. Our solution enables it to continue innovating and improving quality. And, with the space- and power-efficiency of TeraFlex, Yandex’s new network also ensures that future growth is fully sustainable.”

Ayar Labs raises $35m for its in-package optical interconnect

Ayar Labs, a start-up based in Santa Clara, California closed $35 million in Series B financing for its in-package optical interconnect (I/O) solutions.

Ayar Labs said optical I/O (OIO) solves the major computing bottlenecks in interconnect bandwidth, power consumption, and reach.  The company is developing a monolithic in-package optical I/O (MIPO) solution for applications that require high bandwidth, low latency and power-efficient short-reach interconnects. The company's patented approach uses industry-standard silicon processing techniques to develop high speed, high density, low power optical-based interconnect “chiplets” and lasers to replace traditional electrical-based I/O. The company was founded in 2015. 

Ayar Labs publicly demonstrated its monolithic electronic photonic TeraPHY chiplet at the Supercomputing 2019 conference and is now working with select semiconductor manufacturers, OEM systems builders, and end users. 

The funding round was co-led by Downing Ventures and BlueSky Capital. New investors include Applied Ventures, LLC, Castor Ventures, Downing Ventures (U.K.), and SGInnovate (Singapore), expanding Ayar Labs’ investor base with strategic ecosystem and global investors. Existing investor participation includes BlueSky Capital, Founders Fund, GLOBALFOUNDRIES, Intel Capital, Lockheed Martin Ventures, and Playground Global.

“Over the last year, we have continued to invest and grow our organization, and have demonstrated a number of technology firsts while securing additional customer and ecosystem relationships,” said Charles Wuischpard, CEO of Ayar Labs. “The investment interest from new and existing strategic and financial investors despite these difficult global times allows us to continue executing our long-range plan for making Ayar Labs Optical I/O a ubiquitous computing solution.”

Ayar Labs has been selected as Intel’s optical I/O solution partner for their recently awarded DARPA PIPES (Photonics in Package for Extreme Scalability) project. The PIPES project aims to develop integrated optical I/O solutions co-packaged with next generation FPGA/CPU/GPU and accelerators in Multi-Chip Packages (MCP) to provide extreme data rates (input/output) at ultra-low power over much longer distances than supported by current technology....

Ayar raises $24m for TeraPHY chips, appoints CEO

Ayar Labs, a start-up based in Emeryville, California, raised $24 million in Series A funding for its work in silicon photonics for high-speed connectivity. Ayar Labs said it is pursuing a unique silicon photonics approach that uses fiber optic technology to move data between chips, rather than traditional copper pins and wires. It delivers improvements of 10x more bandwidth and 10x lower power compared to electrical interconnections. The funding...

Movistar Colombia deploys Nokia's Digital Operations software

Telefónica Colombia affiliate, Movistar,is deploying Nokia Digital Operations software to modernize its Operations Support Systems (OSS).

Nokia’s Catalog-Driven Fulfillment solution is supporting the operator’s voice, mobile data, value-added and over-the-top services for 3G and 4G, as well as portability requests and VoLTE provisioning for Movistar’s 19 million mobile subscriber and 3 million fixed subscribers and TV users.

Nokia says its Digital Operations software will enable Movistar Colombia to complete more than 43 million tasks on a monthly basis, 

Francisco Javier Bertran, Digital Transformation Director Movistar Colombia, said: "Nokia is a strategic partner for Movistar's digital transformation process, allowing a convergent and profitable provision of services at scale, which facilitates reaching the market in an agile and timely manner with services for both fixed and mobile clients."

Bhaskar Gorti, President of Nokia Software and Nokia Chief Digital Officer, said: “By modernizing its OSS with Nokia Software solutions, Movistar Colombia is better equipped to deliver new customer-centric products and services and to manage these with extreme automation. Through our Common Software Foundation, Nokia Software solutions, like Digital Operations, are designed to give operators wide operational flexibility. We are pleased to be helping Movistar Colombia through its digital transformation.”

Infinera posts Q3 revenue of $340 million, up 4.2%

Infinera reported GAAP revenue for the quarter was $340.2 million, up 2.6% compared to $331.6 million in the second quarter of 2020 and up 4.2% from $325.3 million in the third quarter of 2019. GAAP gross margin for the quarter was 31.8% compared to 29.4% in the second quarter of 2020 and 26.7% in the third quarter of 2019. Non-GAAP net income for the quarter was $4.2 million, or $0.02 per share, compared to a net loss of $(17.2) million, or $(0.09) per share, in the second quarter of 2020, and a net loss of $(30.5) million, or $(0.17) per share, in the third quarter of 2019.

“We delivered a very strong Q3, achieving non-GAAP operating profitability with non-GAAP revenue, gross margin and operating margin growing both sequentially and year-over-year,” said David Heard, Infinera COO. “We remain focused on the opportunity to grow our market share, expand margins and drive earnings growth through innovation and operational execution.”

“I continue to be very optimistic about the opportunities ahead of us that are created as the industry transitions to 800G, Open Optical networks and intelligent pluggables,” continued Tom Fallon, Infinera CEO. “These transitions are happening in a healthier competitive environment where vertical integration and assurance of network security are increasingly valued.”

CommScope reports Q3 sales of $2.168 billion, down 8.9% yoy

CommScope reported net sales of $2.168 billion up 3% the preceding quarter but down 8.9% from a year earlier. Net sales declined primarily due to year over year decreases in the Home Networks and Outdoor Wireless Networks segments.

CommScope generated a net loss of $(116.3) million, or $(0.66) per basic share, in the third quarter, compared to the prior year period's net loss of $(156.5) million, or $(0.88) per basic share. Non-GAAP adjusted net income for the third quarter of 2020 was $123.1 million, or $0.51 per diluted share, versus $126.9 million, or $0.55 per diluted share, in the third quarter of 2019.

“Since joining CommScope in October, I have been impressed by the team’s relentless focus on executing against our strategic objectives and delivering for our customers around the world,” said Chuck Treadway, president and chief executive officer. “Communication networks are essential to our economies, education system and for keeping us connected on a personal level. I couldn’t be happier to be a part of a company providing such critical network connectivity.

“As we look ahead, the Board and management team are focused on growing our business and creating long-term, profitable growth through a combination of investment opportunities and cost-cutting measures. While there remains much to do, we are confident in our ability to deliver enhanced profitability and unlock even greater value for CommScope and our shareholders. I am excited for CommScope to continue to play a critical role in advancing the 5G and 10G revolutions and shaping our global networks, today and in the future.” 

MACOM posts sales of $147 million

MACOM Technology Solutions reported revenue of $147.2 million for its fiscal fourth quarter and fiscal year ended October 2, 2020, an increase of 31.2% compared to $112.2 million in the previous year fiscal fourth quarter and an increase of 7.3% compared to $137.3 million in the prior fiscal quarter.

Gross margin was 52.8%, compared to 47.2% in the previous year fiscal fourth quarter and 51.6% in the prior fiscal quarter. Net income was $17.5 million, or $0.22 per diluted share, compared to net income of $10.5 million, or $0.16 per diluted share, in the previous year fiscal fourth quarter and net loss of $25.0 million, or $0.37 loss per diluted share, in the prior fiscal quarter.

“During fiscal 2020, we took steps to improve MACOM's financial performance, reinvigorate new product development and update our strategic plan,” said Stephen G. Daly, President and Chief Executive Officer. “We look forward to continued improvements during fiscal 2021.”

VIAVI posts revenue of $284.7 million, sees growth year ahead

VIAVI reported net revenue of $284.7 million for its first fiscal quarter ended October 3, 2020, down from $299.8 million in the same period a year ago. First quarter of fiscal 2021 GAAP net income was $14.3 million, or $0.06 per share. Non-GAAP net income was $48.3 million, or $0.21 per share.

"Our OSP business segment delivered an all-time record quarterly revenue driven by strong demand in 3D Sensing and Anti-Counterfeiting products.  Together with a stabilizing demand environment in NSE and operating expense control, we achieved a non-GAAP EPS at $0.21 which exceeded both the guidance range and a year ago levels," said Oleg Khaykin, VIAVI's President and Chief Executive Officer. "We expect NSE revenue to continue recovering and strengthen sequentially driven by Field Instruments. OSP strength is expected to continue with modest pullback in 3D Sensing and Anti-Counterfeiting products, inline with fiscal Q2 seasonality."

Khaykin added, "The near-term macroeconomic uncertainty notwithstanding, we expect calendar 2021 to be a growth year driven by the secular demand for 5G Wireless, Fiber and 3D Sensing."

  • Americas, Asia-Pacific and EMEA customers represented 33.5%, 38.0% and 28.5%, respectively, of total net revenue for the quarter ended October 3, 2020.
  • As of October 3, 2020, the Company held $595.5 million in total cash, short-term restricted cash and investments.