MEF LSO Sonata APIs address the business-to-business layer of inter-provider buying and selling at the commercial level. So what market traction are we seeing in mid-2022?
Here is an update from Stan Hubbard, Principal Research Analyst, MEF.
Tuesday, July 26, 2022
Juniper beats forecast with revenues of $1.27 billion, up 8% yoy
Juniper Networks reported Q2 2022 ret revenues of $1,269.6 million, an increase of 8% year-over-year and an increase of 9% sequentially. GAAP operating margin was 8.5%, an increase from 7.3% in the second quarter of 2021, and an increase from 5.0% in the first quarter of 2022.
GAAP net income was $113.4 million, an increase of 83% year-over-year, and an increase of 104% sequentially, resulting in diluted net income per share of $0.35. Non-GAAP net income was $136.4 million, a decrease of 3% year-over-year, and an increase of 34% sequentially, resulting in non-GAAP diluted net income per share of $0.42.
“We exceeded our revenue forecast during the June quarter and delivered a second consecutive quarter of double-digit year-over-year product revenue growth,” said Juniper’s CEO, Rami Rahim. “Demand signals remain healthy and we are seeing attractive opportunities across our enterprise, cloud and service provider markets. Based on this momentum, the backlog we have built, and our latest expectations regarding supply, I am increasingly optimistic regarding our revenue growth prospects for the year.”
“Our teams executed well against the backdrop of an extremely challenged supply chain environment in the June quarter,” said Juniper’s CFO, Ken Miller. “We have taken actions to improve delivery of our products to customers. While some of these actions are likely to impact profitability over the next few quarters, they are enabling us to better meet customer demand, which should have positive long-term implications for our business. We remain focused on driving improved profitability and expect margins to improve in 2023.”
Juniper also noted ongoing supply chain challenges, which have resulted in extended lead times, as well as elevated logistics and component costs.
For the third quarter, Juniper expects to see solid revenue growth driven by the strength of ots backlog, strong demand and an improved supply outlook.
Microsoft misses some expectations but Azure revenue up 40%
Citing evolving macroeconomic conditions and other unforeseen items, Microsoft reported revenue and earnings below its previously-provided financial guidance.
Revenue was $51.9 billion, an increase of 12% (up 16% in constant currency). Operating income was $20.5 billion and increased 8% (up 14% in constant currency). Net income was $16.7 billion and increased 2% (up 7% in constant currency). Diluted earnings per share was $2.23 and increased 3% (up 8% in constant currency)
“We see real opportunity to help every customer in every industry use digital technology to overcome today’s challenges and emerge stronger,” said Satya Nadella, chairman and chief executive officer of Microsoft. “No company is better positioned than Microsoft to help organizations deliver on their digital imperative – so they can do more with less.”
“In a dynamic environment we saw strong demand, took share, and increased customer commitment to our cloud platform. Commercial bookings grew 25% and Microsoft Cloud revenue was $25 billion, up 28% year over year,” said Amy Hood, executive vice president and chief financial officer of Microsoft. “As we begin a new fiscal year, we remain committed to balancing operational discipline with continued investments in key strategic areas to drive future growth.”
Unfavorable items included:
Unfavorable foreign exchange rate movement within the quarter negatively impacted revenue and diluted earnings per share $(595) million and $(0.04), respectively.
Extended production shutdowns in China that continued through May and a deteriorating PC market in June contributed to a negative impact on Windows OEM revenue of over $(300) million
Reductions in advertising spend contributed to a negative impact on LinkedIn as well as Search and news advertising revenue of over $(100) million
Employee severance costs.
Some business highlights for the quarter:
Revenue in Productivity and Business Processes was $16.6 billion and increased 13% (up 17% in constant currency), with the following business highlights:
- Office Commercial products and cloud services revenue increased 9% (up 13% in constant currency) driven by Office 365 Commercial revenue growth of 15% (up 19% in constant currency)
- Office Consumer products and cloud services revenue increased 9% (up 12% in constant currency) and Microsoft 365 Consumer subscribers grew to 59.7 million
- LinkedIn revenue increased 26% (up 29% in constant currency)
- Dynamics products and cloud services revenue increased 19% (up 24% in constant currency) driven by Dynamics 365 revenue growth of 31% (up 36% in constant currency)
Revenue in Intelligent Cloud was $20.9 billion and increased 20% (up 25% in constant currency), with the following business highlights:
- Server products and cloud services revenue increased 22% (up 26% in constant currency) driven by Azure and other cloud services revenue growth of 40% (up 46% in constant currency)
Revenue in More Personal Computing was $14.4 billion and increased 2% (up 5% in constant currency), with the following business highlights:
- Windows OEM revenue decreased 2%
- Windows Commercial products and cloud services revenue increased 6% (up 12% in constant currency)
- Xbox content and services revenue decreased 6% (down 4% in constant currency)
- Search and news advertising revenue excluding traffic acquisition costs increased 18% (up 21% in constant currency)
- Surface revenue increased 10% (up 15% in constant currency)
https://www.microsoft.com/en-us/investor/earnings/fy-2022-q4/press-release-webcast
Google Cloud revenue hit $6.276 billion in Q2, up 35.6%
Alphabet reported Google Cloud revenue of $6.276 billion in the quarter ending 30-June-2022, up 36.5% from the same period last year. The company cited continued demand across all geographies and market segments.
Google Cloud Public Sector was launched in June.
The operating loss for Google Cloud increased to ($858 million) compared to ($591 million) a year earlier.
Verizon Business enhances its BlueJeans meeting service
Verizon Business announced several improvements to its BlueJeans meeting service aimed at making calls more engaging and immersive. These include:
- Multi-Language Closed Captioning and Transcripts: More language options to better support diverse, dispersed teams
- Hide Self View: The ability to hide one's own video, while still allowing others to see you, reduces video fatigue caused from constant hair checks
- Binge Meetings (iOS and iPadOS): Gives users the flexibility to easily get notified and jump into their next call
- CallKit Support (iOS and iPadOS): Providing assistance for remote worker time management, Call Kit Support for iOS and iPadOS allows users to better manage incoming phone calls while on a BlueJeans Meeting by switching over without dropping either call
- Breakout Sessions: The ability to ‘Ask for Help’ with broadcasting a message creates better communication across dispersed breakout participants
- Virtual Backgrounds: Virtual backgrounds available on iOS, iPadOS and Android devices means more options to personalize or minimize unwanted backgrounds distractions
- RTMP Streaming: On the Desktop, Stream your Meeting to any feed with a URL and Streaming Key (previously only available in BlueJeans Events)
Additionally, updates to the BlueJeans app on Meta Portal can help to account for different working patterns and preferences. These include Collab Board Support and a Share Screen Link for fast second Screen Login access/share.
Dell'Oro: 5G rollouts to drive demand for microwave transmission
Demand for Microwave Transmission equipment is set to increase for the next few years due to future 5G deployments, according to a recent forecast report by Dell’Oro Group. This growth will be driven by new 5G markets that rely more on wireless backhaul.
“Microwave Transmission equipment demand is on the rise,” said Jimmy Yu, Vice President of Dell’Oro Group. “Demand for Microwave Transmission equipment for mobile backhaul is already off to a good start, growing 11 percent in 2021. We expect future 5G installations will drive this market’s growth for a few more years.
“Although 5G deployments started a few years ago, most of those were rolled out in areas with high fiber availability. We are now seeing the 5G spectrum auctions and new roll outs in markets that rely more on wireless backhaul. This bodes well for point-to-point Microwave Transmission equipment,” added Yu.
Additional highlights from the Microwave Transmission & Mobile Backhaul 5-Year Forecast Report:
- For the cumulative period that includes the years 2022 through 2026, Microwave Transmission equipment revenue is projected to approach $18 billion.
- Approximately 70 percent of the Microwave Transmission market will be driven by mobile backhaul. The remainder will be from sales into vertical markets such as enterprises and government.
- The technology segment with the highest five year growth will be E-band. The E/V Band market is forecast to grow at a 25 percent compounded annual growth rate.
Botswana's BoFiNet picks Ribbon for transport upgrade
BoFiNet, a wholesale provider of national and international telecommunications infrastructure in Botswana, selected Ribbon Communications to upgrade its national backbone.
BoFiNet's backbone network, Botswana's largest, supports the company's mandate to provide a world-class telecommunications infrastructure to help drive connectivity and economic growth. More than 75 of the country's service providers connect to and rely on BoFiNet's network, which includes 10,600 kilometers (6,500 miles) of fibre covering more than 200 towns and villages.
Ribbon provided BoFiNet with a multi-terabit optical network that combines DWDM transport and OTN switching. Based on Ribbon's Apollo optical networking products, the solution gives BoFiNet a fully programmable optical network that supports multiple-routing resiliency and dynamic restoration across its pan-national optical transit network. The network boasts a capacity of 48 channels at 200G per channel with an easy path to upgrade to 400G as traffic demand increases.
"We've worked closely with BoFiNet to create the advanced solution that leverages the best of DWDM transport and OTN switching to meet their requirements," said Lior Tourgeman, Ribbon's VP Sales, Africa. "The enhanced capacity, flexibility and resiliency enables BoFiNet to support service providers with a broad variety of needs, as it continues to realize its vision to be a leader in the continent's digital transformation."
Ribbon supplies optical transport for Blueline Madagascar
Blueline, a provider of internet, voice and television services throughout Madagascar, has selected Ribbon's Apollo Optical Networking solution to upgrade the bandwidth capacity of its communications network.The Apollo 9600 Dense Wavelength Division Multiplexing (DWDM) and Optical Transport solution provides Blueline multi-service transport capabilities on an energy-efficient multi-wavelength 100 Gigabit (100G) backbone that can be seamlessly upgraded...
Colt Japan deploys Ribbon's Session Border Controllers
Colt Technology Services has deployed Ribbon's Microsoft-certified Session Border Controllers (SBCs) as part of its new Colt Intelligent Communications (CIC) with Cloud Session Border Controller offering across Japan.CIC is an enterprise solution integrating Microsoft's cloud productivity applications with Colt's voice and data networks to securely deliver superior collaboration experiences and business communications services. With CIC, phone calls...
France's SNCF picks Kontron and Ribbon for optical upgrade
Kontron Transportation has been awarded the Transilien SNCF Voyageurs Optical Transport Network (OTN) project to upgrade SNCF's communications network. The project involves replacing obsolete WDM equipment in the Paris region with Ribbon's WDM, including OTN switching technology, part of its IP Wave portfolio.The project includes:A multi-tier core-aggregation-access OTN switching architecture, based on Ribbon's 9904X Metro OTN and 9901X Access...
