Wednesday, April 9, 2003

Foundry Networks Sees Growth in Q1 Results

Based on preliminary data, Foundry Networks expects net revenue for the quarter ended 31-March-2003 to be in the range of $89.0 million to $91.0 million, compared to $86.7 million for the previous quarter. The company also expects earnings per share for the first quarter will be in the range of $0.09 to $0.11. The company noted a book-to-bill ratio greater than 1.0 for the quarter and reported significant strength in federal government sales. Full results are expected 23-April-2003.
http://www.foundrynetworks.com

AMCC Announces Reduction in Workforce

Citing continued softness in its markets, Applied Micro Circuits Corporation (AMCC) announced another round of job cuts. At the beginning of 2003, AMCC had 912 employees in its worldwide workforce. By the end of 2003, it now anticipates having approximately 626 employees, a 31% reduction. The realignment, combined with consolidation of certain facilities and the previously announced closure of AMCC's wafer fab will reduce ongoing operating expenses by $35-40 million annually and fixed cost of sales overhead by $15-17 million annually.
http://www.amcc.com

Nokia Networks Announces Staff Reductions

Nokia Networks, the infrastructure arm of Nokia, will eliminate 1,800 staff positions as part of cost-cutting measures. Up to 1100 of the 1800 planned personnel reductions will be in Finland, while the remainder will be divided among other countries. The reductions will be made in R&D, operations, sales and marketing and in support functions. The company said it is determined to continue a leadership strategy in mobile networking.
http://www.nokia.com

Juniper Networks Report Q1 Revenue of $157.2 million

Juniper Networks reported first quarter revenue of $157.2 million, compared with $122.2 million for the same period last year and $155.3 million for Q4 2002. GAAP net income for the first quarter was $3.7 million or $0.01 per share, compared with a net loss of $46.0 million or $0.14 per share in the first quarter of 2002. Juniper's CEO, Scott Kriens, described the quarter's financial performance as "solid."http://www.juniper.net

Covad Adds 35,000 Net lines in Q1

Covad Communications added 35,000 net lines in Q1, bringing total lines in service on 31-March-2003 to more than 417,000 lines. Customer disconnections, or churn, averaged approximately 3.6% percent in the first quarter. Churn for the first quarter was affected by the migration of subscriber lines from a customer, Network Access Solutions (NAS), which is in bankruptcy proceedings. However, in January 2003, the bankruptcy court approved a transaction that provided Covad with the right to solicit customers previously served by NAS. Covad expects its churn rate will be reduced. The company ended the quarter with $178 million in cash.
http://www.covad.com

ITXC Rejects IDT's Acquisition Bid

The ITXC Board of Directors rejected IDT's acquisition proposal saying the offer was not in shareholders' best interests. ITXC noted that its cash and cash equivalents were approximately $1.70 per share at the end of the Q1 2003 and that its net book value per outstanding share exceeded $2.65 per share on 31-March-2003. Moreover, the company said its proprietary technology gives it a strategic advantage in international VoIP. ITXC Chairman and CEO Tom Evslin described the offer as "totally unacceptable." The ITXC Board also approved a Shareholder Rights Plan and declared a dividend of one Right on each outstanding share of ITXC common stock.
http://www.itxc.net

IDT Proposes to Acquire ITXC

IDT Corporation publicly announced a proposal to acquire ITXC Corp. in a stock-for-stock transaction that would provide a 15% premium to the stockholders of ITXC, based on the closing price of ITXC's common stock on 09-April-2003, which was $1.22. IDT said a merger could provide the sufficient scale for ITXC's operations to become cash flow positive much sooner than if it were to remain a separate company.
http://www.idttelecom.com
  • On 25-February-2003, IDT publicly announced a bid to acquire Global Crossing that would “at least�? match the offer submitted last August by the Hong Kong-based conglomerate Hutchinson Whampoa Ltd and state-controlled Singapore Technology Pte Ltd. The offer was rejected.


  • In July 2002, IDT announced unsolicited (and unsuccessful) bids to acquire two units of WorldCom: its MFS and Brooks Fiber units and its MCI consumer and small business long distance units. IDT valued the combined bids at $5 billion.

  • In December 2001, IDT acquired Winstar Communications for $42.5 million ($30 million in cash and $12.5 million in IDT Class B Common Stock). Other IDT acquisitions include major equity interests in Net2Phone and Talk America Radio Network.

Intersil Unveils Chip for Wireless AP + Router Designs

Intersil introduced a new WLAN access point chipset that eliminates the requirement for a separate network processor. The new design incorporates the functionality for 802.11g and includes an ARM9 microprocessor core. It could be used for AP and router implementations with either single port or multi-port Ethernet PHYs, and it supports Power over Ethernet (PoE).
http://www.intersil.com

BellSouth Deploys Alcatel DSLAMs in all South Carolina Cos

Alcatel will provide its 7300 ASAM DSL equipment to BellSouth to enable 100% DSL coverage for all of BellSouth's central offices in the state of South Carolina. BellSouth said actions taken by the South Carolina state legislature have created a favorable environment for the network expansion. Financial terms were not disclosed.
http://www.alcatel.com
http://www.bellsouth.com

National Broadband to Build Wireless along WilTel's Fiber Routes

National Broadband, a start-up carrier based in Aspen, Colorado, unveiled plans to rollout out wireless broadband services to communities along the fiber network footprint of WilTel Communications. Using both licensed and unlicensed spectrum, National Broadband will deploy a master base station at each of 422 optical regeneration stations, which are located at 40 mile intervals along the nationwide WilTel fiber network. At each of the stations, National Broadband will install a customized optical switch from MRV Communications that is capable of adding/dropping up to 1 Gbps of traffic onto the network. WilTel is providing two fibers to National Broadband for its exclusive use in the deployment. National Broadband uses point-to-point radios to serve regional ISPs, cable companies, independent telcos and large businesses. It also plans to offer point-to-multipoint residential services in some areas. National Broadband also plans to differentiate its network by deploying a new generation of "content processors" from Tariri (an Intel spin-out), telco servers from IBM, and Microsoft 2003 Servers with .NET capabilities. The network will have over 1 petabyte of local storage capacity at start-up. The Tarari processors will offload computationally intense security and media functionality from end-user devices. The .NET functionality will support forthcoming media and presence applications from Microsoft and others.
http://www.nationalbroadband.com

Korea Telecom Offers DSL+WLAN Access, 8,500 Hotspots Now in Service

With broadband already at high penetration rates throughout South Korea, service providers are rapidly evolving their networks to offer differentiated services, said Dr. Won-sic Hahn, Managing Director, Fixed-Mobile Convergence Business Department, KT (Korea Telecom), speaking at the Broadband Wireless World 2003 conference in San Jose, California. KT has introduced a new consumer service that combines home DSL access with WLAN connectivity. For an additional monthly fee, the "NESPOT" service provides DSL subscribers with a home wireless LAN as well as unlimited access to KT's public hotspots. The user is provided with a single ID and password for both home connectivity and the public hotspots. KT already has 8,500 hotspots in operation across Korea in cafes, subway stations, airports, hospitals, school campuses and stores. Private companies are also encouraged to offer the service in their public lobbies. KT plans to have 16,000 WLAN hotspots in service by the end of 2003. KT currently has about 166,000 subscribers for the service and is adding about 1,500 new users per day. NESPOT subscribers can use Internet phone and messaging services. Rival Hanaro Telecom and others are launching their own hotspots services. South Korea currently has about 32 million mobile phone subscribers, of which 24 million use mobile Internet service. Dr. Hahn said a new opportunity exists for bridging traffic and subscribers from the 2.5/3G network to the public WLAN infrastructure. KT is working on a single-password "NESPOT Swing" service that enables advanced mobile phones and PDAs to seamlessly access either the CDMA 1xEVDO infrastructure or WLAN hotspots. The service is likely to be used for downloading video clips, music, photos, e-books and maps. KT hopes to have 124,000 NESPOT Swing users this year, growing to 3.6 million by 2005.
http://www.koreatelecom.com

Tuesday, April 8, 2003

CableLabs Completes Certification Wave 25, More DOCSIS 2.0 Modems

CableLabs certified another 12 DOCSIS 2.0 cable modems from Ambit, Arris, Castlenet, Com21, Hitron, LinkSys, Motorola, Scientific Atlanta, Terayon, and Thomson. CableLabs also announced that eight companies gained certified status for DOCSIS 1.1 products and one gained DOCSIS 1.1 qualified status for headend equipment.
http://www.cablelabs.com

MetaSwitch VP3500 Completes CALEA Review with FBI

MetaSwitch has completed an extensive review with the FBI demonstrating that its VP3500 Next Generation Class 5 Switch meets CALEA requirements for circuit switching equipment. Metaswitch said the CALEA functionality is incorporated on-board its MetaSwitch VP3500 platform, rather than requiring service providers to deploy additional external equipment to meet CALEA requirements. In particular, the MetaSwitch CALEA capability meets the J-STD-025A standard for circuit switching equipment. CALEA, the Communications Assistance for Law Enforcement Act, requires that U.S. carriers provide Law Enforcement Agencies with the continued ability to perform electronic surveillance with existing and new telecommunications switching equipment. Technical requirements or standards for CALEA capabilities have been established for several categories of telecommunications by industry associations or standard-setting organizations, in consultation with representatives of the law enforcement community. The Telecommunications Industry Association (TIA) and Committee T1, standards organizations, are currently working on a further revision, J-STD-025B to cover packet based networks.
http://www.metaswitch.com
  • The MetaSwitch VP3500 platform integrates softswitch, media and signaling gateway components for delivering over 80 Class 5 services over legacy and broadband IP/ATM networks. The platform scales from 400 to over 250,000 subscribers per rack. MetaSwitch is a division of Data Connection.

Ariane 5 Successfully Launches Two Communications Satellites

An Ariane 5 rocket orbited two communications satellites: Insat 3A for ISRO, the Indian space agency, and Galaxy XII for PanAmSat. The flight marked the eleventh successful launch of the Ariane 5 "Generic" launcher. The Insat 3A satellite is fitted with 18 C-band and extended C-band transponders and 6 Ku-band transponders. It will provide telecommunications and TV transmission services for the Indian sub-continent, while also carrying out a meteorological observation mission. The Galaxy XII satellite will provide C-band links between the continental United States, Alaska and Hawaii.
http://www.arianespace.com
  • In December 2002, Arianespace's first flight of a new Ariane 5 rocket designed carrying a 10-ton payload for Eutelsat and the French space agency CNES failed soon after launch from Kourou, French Guinea. The Ariane 5 rocket and its Hotbird 7 satellite were purposefully destroyed.

House Subcommittee Advances Funding Bill for Federal Spectrum Reallocation

The U.S. House of Representatives' Committee on Energy, Subcommittee on Telecommunications and the Internet approved for full Committee consideration The Commercial Spectrum Enhancement Act (H.R.1320). The proposed legislation provides funds to federal agencies that incur costs for the reallocation of frequencies from federal use to commercial use. The bands of eligible frequencies for this purpose includes the 1710-1755 megahertz band and any other frequencies reallocated from federal use to commercial use after 01-January-1995 that is assigned by competitive bidding.http://energycommerce.house.gov/108/action/H.R.1320.htm

Ronald T. LeMay Leaves Sprint

Ronald T. LeMay, Sprint's president and chief operating officer, has left the company. LeMay, who joined Sprint in 1985, has entered into a separation agreement with Sprint and will provide consulting services to the company for one year.
http://www.sprint.com
  • On 19-March-2003, Gary D. Forsee was named CEO of Sprint, replacing Bill Esrey, who will continue in his role as Sprint's chairman during a transition period. Forsee previously served as vice chairman of BellSouth Corporation where he had responsibility for the company's domestic operations. Before that, Forsee spent 10 years with Sprint, holding leadership positions in the company's long-distance and PCS operations, and one year with Global One, a joint venture of Sprint, Deutsche Telekom and France Telecom, where he served as president and CEO.

Verizon Signs 1 Million Small/Medium-Sized Businesses for Long Distance

Verizon is now providing more than 1 million small and medium-sized businesses with long distance service. Verizon ranks as the nation's third-largest long-distance provider.
http://www.verizon.com

Net6 Secures $6 Million for its “Transformation Gateways�?

Net6, a start-up based in San Jose, California, secured $8.5 million in second round funding for its network-based application transformation gateways, which deliver business applications to wired and wireless user devices. The company's network-based appliance transforms application data to match the type of access client device, such as screen-based IP desk telephones, wireless PDAs, two-way pagers, and web-enabled cellular phones. The new funding was led by BA Venture Partners and included first round investors Sierra Venture Partners and OVP Venture Partners.
http://www.net6.com

Capella Photonics Raises $7M for Optical Subsystems

Capella Photonics, a start-up based in San Jose, California, raised $7 million in Series B funding for its forthcoming line of optical subsystems targeted at metro and long-haul networks. Products specifics have not yet been disclosed. Major investors include Bay Partners, Vanguard Ventures, and BCE Capital, a unit of Bell Canada Enterprises.
http://www.capellaphotonics.com
  • Capella Photonics was founded in December 2000 by Dr. Joseph Davis. Previously, Davis was co-founder and interim COO of Iolon, a Seagate spin-off that focused on optical switches and tunable lasers for telecommunications. Before that, he was co-founder and CTO of Quinta Corporation, where he co-invented a multi-disk data-storage architecture.

Sonus Networks Reports Quarterly Revenue of $16 Million

Sonus Networks reported Q1 revenue of $16.0 million compared with $12.7 million in Q4 2002 and $21.2 million in Q1 2002. Net loss for the first quarter of fiscal 2003 was $4.4 million or $0.02 per share compared with a net loss for Q4 2002 of $12.8 million or $0.07 per share. The company characterized the quarter as "good progress" towards its business objectives. Sonus also announced that NuVox, an integrated communications provider serving the Midwestern and Southeastern states, selected its platform to develop a VoIP network that will carry all of NuVox's long distance voice traffic, as well as offload Internet traffic from its circuit switched network.
http://www.sonusnet.com