Monday, November 1, 2021

Mobile Networks will be Transformed by xApps and rApps

Open RAN simplifies the ability to do operations at scale. It allows operators to upgrade, manage, and deploy the network in a different way with opportunities to create new services, create new network slices, and open the RAN to third-party vendors for new features and capabilities. In this video, Rob Soni, Head of RAN Infrastructure at VMware, introduces two new logical network elements that can be deployed on cloudified platforms to do intelligent control and the opportunities these new elements offer operators.

Rakuten Symphony: Disrupting the Mobile Industry

 How can a brand new network become the best network in Japan? 

In this video clip, Tareq Amin, CEO of Rakuten Symphony, discusses their success in the use of Open RAN to disrupt the mobile market and how they prevailed despite naysayers.

VMware completes spin-Off from Dell Technologies

VMware completed its spin-off from Dell Technologies. The move provides VMware increased freedom to execute its multi-cloud strategy, a simplified capital structure and governance model, and additional operational and financial flexibility. VMware and Dell said they will continue to partner with each other and to continue support/services to mutual customers.

“VMware’s mission is to deliver the trusted software foundation that accelerates our customers’ innovation,” said Raghu Raghuram, chief executive officer, VMware. “As a standalone company, we will continue to bring our multi-cloud strategy to life by providing our customers the power to accelerate their business and control their destiny in this new era.”

The terms of the spin-off included an $11.5 billion special cash dividend hat resulted in a $27.40 per share dividend payment on November 1, 2021 to all VMware stockholders as of close of business on October 29, 2021. 

Arista hits Q3 sales of $748M, up 23.7%, raises prices

Arista Networks reported Q3 revenue of $748.7 million, an increase of 5.8% compared to the second quarter of 2021, and an increase of 23.7% from the third quarter of 2020. GAAP gross margin owas 63.9%, compared to GAAP gross margin of 64.2% in the second quarter of 2021 and 63.6% in the third quarter of 2020. Non-GAAP net income was $236.9 million, or $2.96 per diluted share, compared to non-GAAP net income of $192.0 million, or $2.42 per diluted share in the third quarter of 2020.

"We are experiencing strong demand for our pioneering client to cloud networking portfolio across all of our customer sectors. Despite a challenging supply chain environment, I am pleased with our delivery of another record quarter of Arista's financial results in Q3 2021," stated Jayshree Ullal, Arista’s President and CEO.

“We are experiencing strong demand for our pioneering client to cloud networking portfolio across all of our customer sectors. Despite a challenging supply chain environment, I am pleased with our delivery of another record quarter of Arista's financial results in Q3 2021.”

Arista’s board of directors has also approved a four-for-one stock split later this month.

On an investor call, Arista executives said the company increased its list prices effective November 4, 2021, averaging approximately 10% to offset price hikes ranging from 15% to as high as 200% across its entire supply chain. The company also noted that lead times of many components have extended to 50 to 80 weeks.

Arista also said services and subscription software contributed approximately 21.5% of revenue in the third quarter, down from 22.3% in Q2. International revenues is Q3 amounted to$ 191 million or 25% of total revenue down from 27% in the second quarter.

Huawei's revenue continues to decline but company remains profitable

 Huawei reported revenue of CNY455.8 billion (approximately US$71.32 billion) for the first three quarters of 2021. The reported net profit margin was 10.2%. No further details were released.

The reported revenue represents a drop of approximately 38% compared with the first nine months of 2020.

"Overall performance was in line with forecast," said Guo Ping, Huawei's Rotating Chairman. "While our B2C business has been significantly impacted, our B2B businesses remain stable. Through our ongoing commitment to innovation, R&D, and talent acquisition, and rigorous attention to operating efficiency, we are confident we will continue to create practical value for our customers and the communities in which we work."

Huawei's first half 2021 revenue drops 29% yoy - shift to enterprise

Huawei released the following business results for the first half of 2021:

In H1, Huawei generated CNY320.4 billion (approximately US$49.4 billion) in revenue, down 29.4% yoy, with its net profit margin reaching 9.8%.

  • Carrier business revenue: CNY136.9 billion, down 14.2% yoy 
  • Enterprise business revenue: CNY42.9 billion, up 36.3% yoy
  • Consumer business revenue: CNY135.7 billion, down 46.9% yoy

"We've set our strategic goals for the next five years," said Eric Xu, Huawei's Rotating Chairman. "Our aim is to survive, and to do so sustainably. We'll do this by creating practical value for our customers and partners. Despite a decline in revenue from our consumer business caused by external factors, we are confident that our carrier and enterprise businesses will continue to grow steadily."

Xu continued, "These have been challenging times, and all of our employees have been pushing forward with extraordinary determination and strength. I want to thank every single member of the Huawei team for their incredible effort. Going forward, we continue to believe deeply in the power of digital technology to provide fresh solutions to the problems the world is facing right now. We will keep on innovating to help build a low-carbon, intelligent world."

Huawei's Q1 revenue drops 16.5% year-on-year

Huawei reported Q1 2021 revenue of CNY152.2 billion (US$23.17 billion) in revenue, a 16.5% decrease year-on-year. The company said its network business maintained steady growth, while its consumer business revenue declined, in part as a result of selling the Honor smart device brand in November 2020. Huawei's net profit margin was up 3.8 percentage points year-on-year at 11.1% – the result of the company's ongoing efforts to improve quality of...

ADTRAN reports $138m in Q3 sales, record bookings

 ADTRAN reported Q3 revenue of $138.1 million. Earnings for the third quarter of 2021 were a net loss of $10.4 million and earnings per share was a loss of $0.21. Non-GAAP net loss was $0.8 million and non-GAAP earnings per share was a loss of $0.02. 

ADTRAN Chairman and Chief Executive Officer Tom Stanton stated, “We are experiencing unprecedented demand, highlighted by our record-setting Q3 bookings – up 43% year-over-year. We continue to add new customers, including now three new Tier 1 operators since the beginning of the third quarter. An additional highlight was our 61% year-over-year growth rate in customers deploying our SaaS applications. Finally, we remain extremely excited about our announced proposed combination with ADVA and the synergies we believe it will bring in terms of customer base and product portfolio to further accelerate our growth.”

The company also announced that its Board of Directors declared a cash dividend for the third quarter of 2021. The quarterly cash dividend of $0.09 per common share is to be paid to the Company’s stockholders of record as of the close of business on November 16, 2021.

ADTRAN cites record demand and supply chain constraints

ADTRAN announced the following preliminary financial results for its third quarter ended September 30, 2021:

  • revenue is expected to be $138 million, gross margin is expected to be 34.5%, non-GAAP gross margin is expected to be 34.6%, operating loss is expected to be $10.1 million and non-GAAP operating loss is expected to be $2.6 million. 
  • the lower gross margin and decreased profitability, as compared to prior guidance, was attributed to approximately $9 million in quantifiable supply chain constraint-related expenses incurred during the quarter. Without these expenses gross margin would be within our third quarter guidance range.
  • overall bookings in the third quarter were up 43% year-over-year with a book-to-bill ratio of 1.43 for the quarter, and 1.34 for the nine months ended September 30, 2021. 

ADTRAN also stated its belief that supply chain challenges are peaking during the second half of 2021 and should begin to normalize by mid-2022. 

ADTRAN Chairman and Chief Executive Officer Tom Stanton stated, “We are experiencing record demand for our solutions with Q3 setting an all-time high for bookings in a quarter. This increased demand comes from a diverse mix of global Tier 1 and regional service providers planning to deploy our fiber access platforms, in-home service delivery platforms and SaaS applications. We expect this growth to accelerate. During the third quarter we secured two additional Tier 1 fiber customers, and previously announced Tier 1 fiber customers significantly increased their bookings for our fiber access platforms. Although our revenue growth and profitability in the near-term are impacted by the supply chain issues, our long-term outlook continues to strengthen given the record demand and the supply outlook.”

Keysight appoints Narayanan to head communications business

 Keysight Technologies has appointed Kailash Narayananas as president of its Communications Solutions Group, a $3.3+ billion global business that addresses the design and test solutions needs of the communications ecosystem, including wireless and wireline, as well as aerospace defense and government customers. Most recently, the Communications Solutions Group was led by Satish Dhanasekaran, who assumed the role of Keysight's chief operating officer in 2020.

Narayanan joined the company in 1996. Prior to leading Keysight's commercial communications business, he led the company's wireless devices business where he was instrumental in establishing relationships with market-leading customers and driving significant expansion of Keysight's 5G offerings. He holds a master's degree in electrical engineering and computer science from the University of Illinois Chicago and an MBA from Walden University.

GlobalFoundries closes Initial Public Offering

GlobalFoundries announced the closing of its initial public offering of 55,000,000 ordinary shares, 30,250,000 of which were offered by GF and 24,750,000 of which were offered by GF's existing shareholder, Mubadala Investment Company PJSC, at an initial public offering price of $47.00 per share. 

The shares are listed on the Nasdaq Global Select Market and trade under the ticker symbol "GFS."

Morgan Stanley, BofA Securities, J.P. Morgan, Citigroup and Credit Suisse acted as active book-running managers for the offering. Deutsche Bank Securities, HSBC and Jefferies acted as additional book-running managers for the offering. Baird, Cowen, Needham & Company, Raymond James, Wedbush Securities, Drexel Hamilton, Siebert Williams Shank and IMI – Intesa Sanpaolo acted as co-managers for the offering.

SK Telecom's new CEO sets sights on AI & Digital

SK Telecom appointed Ryu Young-sang as its new CEO. He previously was president of SKT's MNO Business.

 Since joining SKT in 2000, CEO Ryu Young-sang has been developing new future growth drivers for SKT and SK C&C. He also built a career as an M&A expert, taking an integral part in the acquisition of SK Hynix in 2012 to expand the business portfolio of the SK Group.

SKT said that under the leadership of its new CEO. SKT will evolve into an “AI & Digital Infrastructure Service Company that provides greater customer value based on its stable fixed and wireless telecommunication infrastructure coupled with new growth drivers like AI, while contributing to the advancement of the whole society." 

“As we open a new chapter in our corporate history, we will strengthen our market leadership by offering customer-centered technologies and services, and make redoubled efforts to become a socially responsible company admired by customers.”