Infinera to Acquire Transmode for Metro Packet-Optical

Infinera announced an offer to acquire Transmode (Nasdaq: TRMO) for approximately $350 million to accelerate its entrance in the 100G metro market. For every 10 shares of Transmode, shareholders will receive SEK 300 in cash and 4.705 Infinera shares.

Transmode, which is headquartered in Stockholm, Sweden, is a leading supplier of metro packet-optical networking in EMEA. Its product portfolio includes packet-optical networking products based WDM and Ethernet Layer 2 technology as well as a complete network and services management suite. Transmode's flagship M-Series platform is used in mobile transport, Triple-play Backhaul and IPTV, Business Ethernet, Enterprise Networks, Metro Regional Core Networking and Wholesale applications. Its TG-Series is a passive optical WDM platform designed for access applications such as Fiber To The Curb (FTTC), Fiber To The Building (FTTB) and high-security access networks. Its TS-Series is a CWDM/DWDM platform for enterprises and private/public institutions. Transmode's customer base includes 3, DT, Tele2, Virgin Media, surftelecoms, Telenor, etc.

Infinera said the Transmode's product set and customer base complements its entrance into the 100G metro aggregation market. Infinera's newly introduced photonic integrated circuits (PICs) will be integrated into Transmode's metro edge portfolio.

“The acquisition of Transmode accelerates the realization of our long held vision of providing an end-to-end portfolio of world class optical transport products. Further, the combination ensures we are well positioned to be a leading provider in the metro aggregation market as this market transitions to 100G,” said Tom Fallon, CEO of Infinera. “Transmode’s services-rich metro platforms, broad European customer base and profitable business model are naturally complementary to Infinera. We are also excited to have the Transmode team join Infinera and leverage our shared cultures of customer first, product excellence and profitability.”

Infinera also disclosed that its Q1 financial results are expected to be slightly ahead of expectations.

Separately, Transmode  disclosed preliminary results for Q1, saying its Q1 revenue will be in the range of SEK 285-290 m (SEK 231.3 m), representing a growth of 23-25% compared to the corresponding quarter the previous year. Preliminary operating profit for the first quarter 2015 is expected to be in the range of SEK 46-51 m (SEK 21.5 m).

http://www.infinera.com/j7/servlet/NewsItem?newsItemID=450
http://www.transmode.com/

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Transmode Debuts All-pluggable, 100G Packet-Optical Metro

Transmode introduced a CFP-based, all-pluggable 100G Solution for metro networks with support for coherent optics.  The solution supports both Layer 1 WDM transport and Layer 2 packet-optical applications.

Transmode's new Metro 100G Solution includes three highly flexible plug-in units for the widely deployed TM-Series. The range of new units includes a 100G Transponder, a 100G Muxponder and a 220G Layer 2 Ethernet Muxponder (EMXP). The new EMXP is part of the company's popular family of EMXP units that support Ethernet switching in the Native Packet Optical 2.0 architecture with a common Ethernet feature set from 1G or 10G CPE access nodes to a 100G core network.

Sten Nordell, Transmode's Chief Technology Officer, said, "This is a significant development milestone for Transmode and we are delighted to be bringing this kind of new solution to the industry. Not only is quick implementation of the new coherent CFP units important but extending their use to both Layer 1 and Layer 2 applications is greatly significant. The Metro P-OTS market is the fastest growing segment of the optical networking industry and one that Transmode already serves well. We are the largest vendor of Metro Edge P-OTS in EMEA and we support customers across the globe with highly sophisticated packet-optical networks. We can now extend these to 100G while also extending our existing TM-2000 based Layer 1 100G capabilities deeper into metro networks."

http://www.transmode.com

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Transmode Misses Q4 Sales Expectations

Transmode, which supplies packet optical networking solutions, announced preliminary sales for the fourth quarter 2013 of SEK 223 million (US$35 million), which is below the expected level reported previously.

CEO Karl Thedéen commented: "Order intake in the fourth quarter was in line with our expectations and the fourth quarter of the previous year. The main reason for fourth-quarter sales being below the expected level stated in the Third-quarter Interim Report is that we could not recognize late orders as revenue during 2013."

The company's preliminary sales for the fourth quarter 2013 were SEK 223 (251) m, down by 11.1%, preliminarily. In the Third-quarter Report, the company communicated "As a result of the situation in the Americas and the merger of two of our major European customers, the company's sales in the fourth quarter will show low growth compared to the corresponding quarter of the previous year."

Preliminary fourth-quarter sales by region were as follows: Europe, SEK 193 (200) m; Americas, SEK 24 (46) m and APAC, SEK 6 (5) m.

Preliminary operating profit for the fourth quarter 2013 is expected between SEK 8.3 m and SEK 9.6 (37.1) m, equating to an operating margin of between 3.7% and 4.3% (14.7%).

http://www.transmode.com

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Transmode Intros iAccess Carrier Ethernet NID

Transmode introduced an "iAccess" solution for delivering business Ethernet and mobile backhaul services.

Transmode's iAccess solution combines a new compact low cost Network Interface Device (NID) with the company's iWDM-PON and Enlighten multi-layer management suite to provide a low cost, simple to install/configure/manage and highly scalable solution. The solution uses a "remote port" architecture which makes all NIDs into extensions of the Ethernet Muxponder that they are connected to. With the remote port architecture the NID automatically takes device and service configuration from the network when it is connected. This removes the need for a separate IP address for each NID, saving these valuable and sometimes scarce resources.

Transmode said its new solution is ideally suited to Ethernet based services that need to scale to large volumes or where simplicity is key.

Sten Nordell, Transmode's Chief Technology Officer, said  "The new iAccess solution is a great step forward in terms of simplifying and scaling Ethernet access networks while also enabling network operators to hit the right price points for these high volume services. We have created a real plug-and-play solution where the WDM-PON enabled NID is simply connected to the access fiber, powered up and then services are automatically created. This enables operators to quickly roll out new services with the right level of carrier class functionality such as MEF Carrier Ethernet 2.0 services."

http://www.transmode.com/

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Russia's MegaFon Upgrades Metro DWDM with NEC + Transmode

MegaFon, one of Russia’s largest telecom operators, is upgrading its optical network with metro DWDM equipment supplied by NEC Neva Communications Systems (NEC) and Transmode.  The delivery has been made to six of the eight branches of MegaFon under a frame agreement of expanding the operator’s network capacity.  Financial terms were not disclosed.

http://www.nec.com
http://www.transmode.com

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