Wednesday, October 26, 2022

Meta reports drop in revenue and profits as CAPEX soars

Meta reported a drop in Q3 revenue and profitability along with rapidly rising capital expediture costs as it invests in infrastructure and metaverse development.

Third Quarter 2022 Operational Highlights

  • Family daily active people (DAP) – DAP was 2.93 billion on average for September 2022, an increase of 4% year-over-year.
  • Family monthly active people (MAP) – MAP was 3.71 billion as of September 30, 2022, an increase of 4% year-over-year.
  • Facebook daily active users (DAUs) – DAUs were 1.98 billion on average for September 2022, an increase of 3% year-over-year.
  • Facebook monthly active users (MAUs) – MAUs were 2.96 billion as of September 30, 2022, an increase of 2% year-over-year.
  • Ad impressions and price per ad – In the third quarter of 2022, ad impressions delivered across our Family of Apps increased by 17% year-over-year and the average price per ad decreased by 18% year-over-year. 
  • Revenue – Revenue was $27.71 billion, a decrease of 4% year-over-year, and an increase of 2% year-over-year on a constant currency basis. Had foreign exchange rates remained constant with the third quarter of 2021, revenue would have been $1.79 billion higher.
  • Costs and expenses – Total costs and expenses were $22.05 billion, an increase of 19% year-over-year. This includes an impairment loss of $413 million for certain operating leases as part of ongoing work to align office facilities footprint with our anticipated operating needs. 
  • Capital expenditures – Capital expenditures, including principal payments on finance leases, were $9.52 billion for the third quarter of 2022.
  • Share repurchases – $6.55 billion of Class A common stock in the third quarter of 2022. As of September 30, 2022, Meta had $17.78 billion available and authorized for repurchases.
  • Headcount – Headcount was 87,314 as of September 30, 2022, an increase of 28% year-over-year.

NTT inaugurates data center in Johannesburg

NTT Ltd. opened its latest data center in Johannesburg, South Africa. 

Johannesburg 1 Data Center is part of NTT’s expansion into the African continent with a capacity of 12MW covering 6,000m² of IT space once fully built out. The technical infrastructure is supported by N+1 uninterruptible power supply systems (UPS), N+1 generator backup, and highly redundant cooling systems. This will provide clients with dedicated sustainable infrastructure, operational control and the design flexibility required to support their high-performance needs.

The facility will cater to hyperscalers and enterprises, providing them with an opportunity to use NTT’s full ICT stack of services, including managed hybrid cloud, network management, collaboration, security, and application monitoring.

The new facility uses a closed-loop chilled water system with air-cooled chillers, meaning that the water running through the cooling systems isn’t evaporated. This reduces the threat of potential drought water restrictions and allows the data center to achieve low power usage effectiveness (PUE) and water usage effectiveness (WUE).

“We’re incredibly proud to be investing in Johannesburg and extending our global data center footprint to South Africa. The country forms a significant part of NTT’s growth strategy as we continue to support Africa’s digital transformation. The opening of Johannesburg 1 will contribute towards the economic growth and social development of the region, as our clients shape the country of tomorrow,” said Florian Winkler, CEO, Global Data Centers EMEA, NTT Ltd.

Fujikura develops high-performance heat pipe for data center cooling

Fujikura introduced a high performance heat pipe for data center cooling that doubles the maximum heat transfer capacity compared with our conventional products.

A heat pipe is an evacuated and sealed container charged with a small quantity of working fluid. Without the assistance of any external force, a heat pipe can transfer heat from one end to other by the repeated action of vaporization and condensation. A new wick structure was developed to enhance the performance of traditional heat pipe. Maximum heat transfer capacity of the new heat pipe (original diameter 8mm and flattening thickness 4mm) reached to 100[W] compared to that of the conventional types 55[W].

OIF appoints Board of Directors

 OIF announced its newly elected Board of Directors and Officers. T

Board of Directors: 

  • Ian Betty, Ciena, was elected to the Board (two-year term)
  • Jeff Hutchins, Ranovus, was re-elected to the Board (one-year term) and continues as Physical & Link Layer Working Group – Co-Packaging Vice Chair
  • Mike Li, Intel, was elected to the Board (one-year term)
  • Cathy Liu, Broadcom Inc., was re-elected to the Board (two-year term) and continues as President
  • Gary Nicholl, Cisco, was re-elected to the Board (two-year term) and continues as Secretary/Treasurer; and as Physical & Link Layer Working Group – Management Co-Vice Chair

Continuing in their positions are:

  • Dave Brown, Nokia, continues to serve as Director of Communications
  • Mark Filer, Google, continues to serve on the Board as Vice President
  • Jeffery Maki, Juniper Networks, continues to serve as a board member; and as Physical Layer User Group Working Group Chair


  • Karl Bois, Nvidia, was re-elected as Technical Committee Vice Chair
  • Lyndon Ong, Ciena, was re-elected as Market Awareness & Education Committee Co-Chair, Networking
  • Klaus-Holger Otto, Nokia, was re-elected as Technical Committee Chair
  • Nathan Tracy, TE Connectivity, was elected Market Awareness & Education Committee Co-Chair, Physical & Link Layer Working Group

“As a member-driven organization, the Board and Officers are critical to furthering OIF’s mission to drive innovation and interoperability in today’s market,” said Cathy Liu, President of OIF. “We congratulate our new and returning members serving on the Board of Directors and Officers and thank them for their continued commitment to OIF.”

China's State Grid Corp extends optical transport contract with Nokia

China State Grid Corp. (SGCC), which is the world’s largest power utility, will deploy Nokia’s optical technology across Hubei, Hunan and Jiangxi provinces, creating a world-class OTN backbone with the capacity, operational efficiency and intelligence required to support the Chinese power grid and provide highly-reliable service to its broad customer base.

SGCC supplies electrical power to more than 1.1 billion people across 26 provinces, covering 88% of Chinese national territory. The contract extends an existing relationship with Nokia.

The network is based Nokia’s family of 1830 Photonic Service Switch-x (PSS-x) P-OTN.

Aliro introduces end-to-end entanglement-based Quantum Network

Aliro Quantum, a quantum networking start-up that spun out of NarangLab at Harvard University, introduced its end-to-end entanglement-based Quantum Network solution. 

AliroNet is hardware vendor agnostic and is licensed in three modes of operation. These three modes of operation align with the genuine quantum network rollout stages. Each mode of operation includes Aliro technical support services with the option to purchase additional services if necessary. AliroNet™ is delivered as a service and includes Aliro Simulator, Aliro Orchestrator, Aliro Controller, and AlirOS™.

The company says its unified solution can be used to emulate entanglement-based quantum networks, implement small scale pilots, and deploy full-scale universal entanglement-based quantum networks.

"Aliro is building quantum networks and creating a foundation for the Quantum Internet," said Jim Ricotta, CEO and Chairman of Aliro Quantum. "The introduction of AliroNet will accelerate our successful collaboration with commercial and government entities to enable the simulation, design, and implementation of multipurpose Quantum Networks."

NETGEAR's Q3 sales drop 14% yoy to $249.6 million

NETGEAR reported Q3 2022 net revenue of $249.6 million, a decrease of 14.0% from the comparable prior year quarter. Third quarter 2022 GAAP net income per diluted share of $0.10, as compared to $0.31 in the comparable prior year quarter.

Patrick Lo, Chairman and Chief Executive Officer of NETGEAR, commented, “In the third quarter, we achieved revenue in the upper half of our guidance range, enabled by continued strong demand for our high-end WiFi mesh, 5G mobile hotspots, and ProAV managed switches. We delivered record revenue in the SMB business despite continued supply challenges throughout the quarter and experienced year over year growth in end user demand for our super premium WiFi mesh systems and 5G mobile hotspots. The overall market for super premium WiFi mesh, led by us, continues to grow year over year while the rest of the WiFi market contracted double digits, a strong validation of our CHP product strategy. We came in below guidance on operating margin due to supply constraints, primarily on our SMB and premium CHP products, which resulted in a missed opportunity to further improve our product revenue mix overall.”

Ribbon sees strength in IP Optical Networks sales

Ribbon Communications reported Q3 revenue of $207 million, compared to $210 million for the third quarter of 2021 and $206 million for the second quarter of 2022. Product and service bookings-to-revenue was 1.28x in the third quarter of 2022, with IP Optical Networks at 1.45x.

"I am excited to share the significant progress we have made this quarter towards improving the fundamentals of our IP Optical Networks business. In many ways this was a record quarter, with revenue plus bookings for the IP Optical Networks segment handily exceeding previous levels," noted Bruce McClelland, President and Chief Executive Officer of Ribbon Communications. "This resulted in a significant improvement in gross margin and a major step toward profitability for the segment. We also received a significant validation of our IP Routing strategy with a major new 5G Cell Site Router win in India this quarter."  

McClelland continued, "Overall results for the quarter were impacted by the timing of several U.S. Federal Cloud & Edge deals and delays of several shipments the last few days of the quarter. We continue to anticipate a sequentially stronger fourth quarter in both of our businesses supported by increased backlog entering the quarter, although we are taking a more cautious approach and have reduced our growth expectations given the macro-operating environment.

Customer and Company Highlights

  • Awarded 5G Cell Site Router deal with top tier mobile carrier in India
  • Appointed Scott Mair, former President, AT&T Networks Engineering and Operations, to Ribbon Board of Directors
  • Verizon and AT&T were greater than 10% customers in the third quarter
  • Ribbon selected by Electricity Transmission Operator MEPSO for Network Modernization project
  • Paritel selected Ribbon to comply with French government mandate to combat Robocall, Fraud and Call Spoofing
  • Ribbon launched Microsoft Teams Enablement Bundle with Poly and TD SYNNEX
  • Ribbon SBC received certification supporting Google Voice SIP interoperability

Indonesia's Moratelindo upgrades optical transport with Nokia

Moratelindo, which is one of the largest private telecommunications infrastructure and network providers in Indonesia, has deployed Nokia's optical transport solution to boost the network capacity in Jakarta and Java island. 

Nokia's solution also includes the 1830 Photonic Service Switch (PSS) to help Moratelindo maximize the reach and capacity of the transport network. 

Michael McPhail, Chief Technology Officer at PT. Mora Telematika Indonesia, said: "Nokia is a global leader in optical transport technology and its PSE-V solution will allow us to cost-efficiently and sustainably upgrade our optical backbone. The modernization of the optical network will enable us to increase capacity per module while bringing down the cost. This crucial upgrade will further deepen our engagement with Nokia and allow us to maintain our competitive edge by further improving network performance.”