ZTE Reports 26.5% Revenue Rise in 2011

ZTE Corporation reported operating revenue rose to RMB58.29 billion for the nine months ended September 30, 2011, an increase of 26.5 per cent year-on-year. Net profit attributable to parent company shareholders for the same period was RMB1.07 billion, a year-on-year decline of 21.5 per cent. The decrease is mainly attributable to increased financial expenses. Basic earnings per share for the period were RMB0.31.


Revenue from terminal sales increased 53.4 per cent year-on-year, driven mainly by growth in sales of 3G and CDMA terminals, and GSM handsets and data cards. Revenue attributed to telecommunications software systems, services and other products saw year-on-year growth of 28 per cent as a result of an increase in fixed terminals and services sales. The company also reported year-on-year growth of 15 per cent in carrier network revenue. This increase is attributed to increased sales of ZTE's wireline products, optical communications systems, domestic sales of GSM/UMTS system equipment and international sales of its CDMA system equipment.
http://www.zte.com.cn

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ARM Discloses First Details of ARMv8 Architecture

ARM unveiled its next generation chip architecture embracing 64-bit processing and extended virtual addressing.


The ARMv8 architecture consists of two main execution states, AArch64 and AArch32. The AArch64 execution state introduces a new instruction set, A64 for 64-bit processing. The AArch32 state supports the existing ARM instruction set. The key features of the current ARMv7 architecture, including TrustZone, virtualization and NEON advanced SIMD, are maintained or extended in the ARMv8 architecture.
http://www.arm.com/

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NETGEAR Continues Fast Growth - Up 28% YoY

NETGEAR reported net revenue for the third quarter ended October 2, 2011 of$301.8 million, as compared to $236.0 million for the third quarter ended October 3, 2010, and as compared to $291.2 million in the second quarter ended July 3, 2011. Net income, computed in accordance with GAAP, for the third quarter of 2011 was $26.7 million, or $0.70 per diluted share.


Patrick Lo, Chairman and Chief Executive Officer of NETGEAR commented, "We are extremely pleased with our Q3 2011 financial performance amid a challenging macroeconomic environment. Our Retail Business Unit revenue was up 18% sequentially, and up 10% over the prior year quarter, while the Commercial Business Unit revenue was up 18% sequentially, and up 21% over the prior year quarter. As expected, the Service Provider Business Unit revenue was down 21% sequentially, reflective of a one-time order from a major service provider in the previous quarter. On a year-over-year basis, service provider revenue was up 85%.:http://www.netgear.com

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Motorola Mobility Posts Q3 Financials, Xoom Tablet Sales Fall Flat

Motorola Mobility reported net revenues of $3.3 billion in the third quarter of 2011, up 11 percent from the third quarter of 2010. The GAAP net loss in the third quarter of 2011 was $32 million, or $0.11 per share, compared to a net loss of $34 million, or $0.12 per share, in the third quarter of 2010.


Mobile Devices net revenues in the third quarter were $2.4 billion, up 20 percent compared with the year-ago quarter. The GAAP operating loss was $41 million compared to an operating loss of $43 million in the year-ago quarter.


The company confirmed the shipment of 100,000 Xoom Android tablets in Q3, down significantly from earlier quarters.


Home segment net revenues in the third quarter were $825 million, down 10 percent compared with the year-ago quarter. GAAP operating earnings were $54 million, compared to $49 million in the year-ago quarter.


The company believes the acquisition by Google to be on track for closing later this year or early next year. Motorola Mobility will hold a special meeting of stockholders on Nov. 17, 2011, to seek stockholder approval of the proposed merger with Google.

http://motorola.com/mobility

• Apple shipped over 11 million iPad2s in Q3.

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PMC-Sierra Posts Q3 Revenue of $173 Million, up 7% YoY

PMC-Sierra reported Q3 revenue of $173.3 million, a sequential increase of 1% compared with $171.0 million in the second quarter of 2011, and 7% higher than net revenues of $162.3 million in the third quarter of 2010. GAAP net income was $47.3 million, or $0.20 per diluted share, compared with GAAP net income in the second quarter of 2011 of $16.7 million, or $0.07 per diluted share.


“Our third quarter results were solid given the difficult economic environment,�? said Greg Lang, president and chief executive officer of PMC. “While macro concerns impact our near-term outlook, PMC is well-positioned to deliver the infrastructure required to support explosive traffic growth on storage, mobile and optical networks.�?http://www.pmc-sierra.com

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AppliedMicro Positions 64-bit ARM "X-Gene" for Next Gen Infrastructure

AppliedMicro introduced its "X-Gene" 64-bit, multi-core ARM architecture for next-generation infrastructure, including cloud computing, wireless infrastructure, enterprise networking, storage and security applications.


The new X-Gene multi-core processors leverage high-performance ARMv8 compliant cores operating at up to 3.0 GHz and are designed for full CPU and I/O virtualization in next generation of cloud computing.


AppliedMicro said its server-on-a-chip will combine multiple ARMv8 compliant 64-bit cores and a high-performance terabit coherent fabric with on-chip 10-Gigabit LAN, storage and WAN physical layer IP. It will also feature a 100-Gigabit per second inter socket communications interface to extend coherency to multi-chip configurations. The SoC design uses server-class dynamic power management during the idle state to achieve an unprecedented level of standby power of less than 300mW. The company expects first samples in the second half of 2012.


AppliedMicro also confirmed TSMC as its fab partner.


"The current growth trajectory of data centers, driven by the viral explosion of social media and cloud computing applications, will continue to accelerate," said Dr. Paramesh Gopi, President and CEO of AppliedMicro. "In offering the world's first 64-bit ARM architecture processor, we harmonize the network with cloud computing and environmental responsibility. Our next-generation of multicore SoCs will bring in a new era of energy efficient performance that doesn't break the bank on a limited power supply. In doing so, AppliedMicro becomes a more complete cloud computing technology provider for one of the hottest growth drivers in the industry." http://www.apm.com

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Cool Demo: Cavium's Small Cell Base Station

Cavium's recently introduced small cell “Base Station on a chip�? is being used to deliver eight simultaneous connections, including streaming of five HD videos, at the maximum possible data throughput.
This demonstration platform, which was shown at the 4G World show last week in Chicago, consists of a commercially available 4G/LTE client, an OCTEON Fusion Technology based eNodeB base station, Cavium's FusionStack eNodeB software, and a commercial 4G/LTE EPC (Evolved Packet Core) solution.
The demo shows how an LTE base station can be shrunk to the size of an iPad. http://www.cavium.com

• In October, Cavium introduced its small cell "Base Station-on-a-chip" family for LTE and 3G networks.
  
  The new OCTEON Fusion series, which builds on the company's established L2-L7 presence in existing wireless infrastructure, combines Octeon's MIPS64 based multi-core architecture with purpose-built Baseband DSP cores, extensive LTE/3G hardware accelerators and digital front end (DFE) functionality into a single chip. This enables very small footprint designs, including picocell and micro base stations, with a minimal bill-of-materials (BOM) and power envelopes.
  
  
  Significantly, the new OCTEON Fusion can be used for small cell LTE base stations scaling from 32 users to 300+ users and up to dual 20MHz carriers, making it a more powerful small cell base station solution than its competitors.
  
  

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Motorola Solutions Reports Strong Q3, Raises Outlook

Motorola Solutions reported Q3 sales of $2.1 billion, up 10 percent from the third quarter of 2010 and driven by solid demand in all regions across both its Government and Enterprise segments. GAAP operating earnings in the third quarter of 2011 were $253 million or 12 percent of sales, compared to $211 million or 11 percent of sales in the third quarter of 2010. GAAP earnings per share from continuing operations were $0.45, compared to a GAAP loss of $0.04 in the third quarter of 2010.


“Our customers continue to invest in solutions that increase revenues and improve operating efficiency,�? said Greg Brown, chairman and CEO of Motorola Solutions. “In addition to our robust growth this quarter, we returned significant capital to shareholders. We repurchased $744 million of stock, initiated our dividend and generated very strong operating cash flow.�?


Government segment sales were $1.4 billion, up 9 percent from the year-ago quarter. Enterprise segment sales were $726 million, up 13 percent from the year-ago quarter.


Motorola Solutions also raised its expected full-year revenue outlook to approximately 7 percent growth with operating earnings of approximately 16.5 percent of sales. Fourth-quarter sales are expected to grow between 2 and 3 percent compared with the fourth quarter of 2010 and approximately 7 percent compared with the third quarter of 2011. http://investors.motorolasolutions.com

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FCC Transforms USF/ICC Into "Connect America Fund"

The FCC voted unanimously to approve significant reforms to the Universal Service fund and Inter Carrier Compensation (ICC), while creating a new "Connect America Fund" aimed at extending broadband to rural areas of the country.


FCC Chairman Julius Genachowski described the vote as " a once-in-a-generation overhaul of universal service, keeping faith with the nation's long commitment to connecting all Americans to communications services."


The FCC estimates that approximately 500,000 jobs will be created over the next six years by expanding high-speed Internet access to over 7 million Americans living in rural areas. For the first time, the FCC also made mobile broadband into an independent universal service objective.


Some highlights of the reforms:


Puts the country on the path to universal broadband within a decade.


The Mobility Fund will expand advanced mobile broadband access to tens of thousands of road miles, including dedicated support for Tribal areas.


Intercarrier compensation reform aims to eliminate hidden costs in consumer bills, providing economic benefits to long distance and wireless consumers across the nation of $2.2 billion annually in the form of lower prices, better value for the money, or both.


The FCC estimates consumers may pay, on average, an additional 10 to 15 cents a month on their bills. No additional charges can be imposed on consumer phone bills that are at or above $30 a month (inclusive of most fees consumers pay on their bills), nor can such charges be imposed on low income consumers served by the FCC's Lifeline program.


The budget for the Connect America Fund is set at $4.5 billion per year. Market-based mechanisms, including
competitive bidding, will be used to distribute money more efficiently.


Intercarrier Compensation Reform includes new rules to address "phantom traffic," i.e., calls for which identifying information is missing or masked in ways that frustrate intercarrier billing. Specifically, the new rules require telecommunications carriers and providers of interconnected VoIP service to include the calling party's telephone number in all call signaling, and require intermediate carriers to pass this signaling information.


The initial ICC reforms focus on reducing terminating switched access rates, which are the principal source of arbitrage problems today. The approach seeks to promote migration to all-IP networks while minimizing the burden on consumers and staying within the universal service budget.
unaltered, to the next provider in a call path. http://www.fcc.gov

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Sony to Buyout Ericsson's Share in Sony Ericsson

Sony will pay EUR 1.05 billion in cash to acquire Ericsson's 50 percent stake in Sony Ericsson Mobile Communications AB. The mobile handset vendor will become a wholly-owned subsidiary of Sony when the deal closes in January 2012.


Sony said it plans to rapidly integrate smartphones into its broad array of network-connected consumer electronics devices - including tablets, televisions and personal computers. http://www.sonyericsson.com

• In 2001, Ericsson and Sony merged their mobile phone businesses worldwide and they have run it as a 50/50 venture ever since.

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PCTEL Works with LightSquared on GPS Interference Solution

LightSquared is working with PCTEL, a developer of antennas, to resolve concerns over high precision GPS receivers. Specifically, PCTEL has developed an antenna that will allow existing high precision users to retrofit their GPS devices to make them compatible with LightSquared's network. This antenna provides high precision GPS users with another in a series of solutions to make their equipment LightSquared-compatible. The design will be tested by Alcatel-Lucent's Bell Labs.


LightSquared noted that PCTEL is the third company to collaborate with it on a solution to high-precision GPS interference issues.


Earlier this month, GPS device maker Javad GNSS announced the design of antennas that can be retrofitted onto existing devices and the development of new receivers that are compatible with LightSquared's network. Additionally, Partron America has created a filtering component that costs only $6. http://www.lightsquared.com http://www.pctel.com

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Juniper Delivers OpenFlow Application in Junos SDK

Juniper Networks is releasing the source code that drives its OpenFlow application, built on the Junos Software Development Kit (SDK), to its developers in order to expand the available toolset for enhancing network flexibility and programmability.

The Junos SDK allows developers to build custom applications that run on top of Juniper's single operating system, Junos, to expand or create new functionality on Juniper Networks switching and routing solutions. The OpenFlow application works within the Junos SDK to change the control plane to create more dynamic network programmability. The new levels of programmability enabled by OpenFlow simplify control of network devices and allow more rapid innovation of intelligent applications and solutions across the entire network infrastructure.


"Juniper is making the OpenFlow application available to an SDK developer community that includes more than five hundred organizations in order to get working code into the hands of customers so they can explore how OpenFlow and network programmability can impact networks everywhere,�? said Mike Marcellin, vice president of systems strategy and marketing at Juniper Networks. “Our priority is making the networking infrastructure more efficient and effective for customers, and OpenFlow is an important step on the path to greater programmability.�?http://www.juniper.net/developer

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MetroPCS to be First with VoLTE

MetroPCS will be among the first mobile operators to deploy Voice over LTE (VoLTE), said Ed Chao, Senior Vice President, Corporate Engineering and Network Operations, speaking at 4G World in Chicago. Mavenir Systems and Acme Packet are VoLTE solution suppliers for MetroPCS. The VoLTE deployment is part of the carrier's strategy to optimize its scarce spectrum resources, as VoLTE is significantly more efficient than the existing CDMA network. http://www.convergedigest.com
http://www.mavenir.com/

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Puerto Rico's Open Mobile Picks Ericsson for LTE

Puerto Rico's Open Mobile has chosen Ericsson to supply, deploy and manage its nationwide network. Under the deal, Ericsson will roll out a complete 4G/LTE solution. Ericsson will assist the operation of Open Mobile newly deployed LTE network. This is Ericsson's first full-scope contract for an LTE network combined with MPLS enabled Mobile Backhaul.
http://www.ericsson.com

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Equinix Ups 2011 Guidance as Data Center Expansions Continue

Equinix reported revenues of $417.6 million for the third quarter, a 6% increase over the previous quarter and a 26% increase over the same quarter last year. This result included $17.9 million in revenues from ALOG (ALOG Data Centers do Brasil) for the quarter. Recurring revenues, consisting primarily of colocation, interconnection and managed services were $397.4 million for the third quarter, a 6% increase over the previous quarter and a 26% increase over the same quarter last year. Non-recurring revenues were $20.2 million in the quarter.


"Equinix achieved strong results in all three regions and we are on target to surpass our 2011 financial objectives,�? said Steve Smith, president and CEO of Equinix. “We plan to make additional investments in Platform Equinix so that we may continue to deliver value to our customers around the globe. Our goal is to generate over $3 billion in annual revenues in 2015, while creating significant returns for our shareholders from these investments."


The company also updated its guidance.


For the full year of 2011, total revenues are expected to be greater than $1,600.0 million. Total year cash gross margins are expected to range between 65% and 66%. Cash selling, general and administrative expenses are expected to approximate $320.0 million. Adjusted EBITDA for the year is expected to be greater than $730.0 million. Capital expenditures for 2011 are expected to be in the range of $645.0 to $665.0 million, comprised of approximately $115.0 million of ongoing capital expenditures and $530.0 to $550.0 million for expansion capital expenditures.


For the full year of 2012, total revenues are expected to be greater than $1,870.0 million. Adjusted EBITDA for the year is expected to be greater than $850.0 million. Capital expenditures for 2012 are expected to be in the range of $700.0 to $800.0 million, comprised of approximately $120.0 million of ongoing capital expenditures and $580.0 to $680.0 million for expansion capital expenditures.
http://www.equinix.com

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NetLogic Sees Q3 Sales Rise 3% to $107 Million

NetLogic posted Q3 2011 revenue of $106.8 million, a 3.0% sequential increase from $103.7 million for the second quarter of 2011 and a 6.8% increase from $100.1 million for the third quarter of 2010. Third quarter 2011 net income (GAAP) was $7.2 million or $0.10 per diluted share. By comparison, GAAP net income was $5.2 million or $0.08 per diluted share for the third quarter of 2010.


"This was another positive quarter for NetLogic Microsystems,�? said Ron Jankov, president and CEO. "In addition to solid financial results, during the third quarter we marked another significant milestone in our roadmap with the announcement of the XLP®II processor, the industry's most advanced multi-core processor leveraging the advanced 28 nanometer process node. This ground-breaking new processor demonstrates our continued commitment to technology leadership and further highlights the tremendous execution capability and expertise of our team."http://www.netlogicmicro.com/

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UN Commission Sets Global Broadband Targets

The United Nations' Broadband Commission for Digital Development published a set of four ambitious goals that it is urging countries around the world to adopt:


Making broadband policy universal. By 2015, all countries should have a national broadband plan or strategy or include broadband in their Universal Access / Service Definitions.


Making broadband affordable. By 2015, entry-level broadband services should be made affordable in developing countries through adequate regulation and market forces (for example, amount to less than 5% of average monthly income).


Connecting homes to broadband. By 2015, 40% of households in developing countries should have Internet access.
Getting people online. By 2015, Internet user penetration should reach 60% worldwide, 50% in developing countries and 15% in Least Developed Countries (LDCs).


"These targets are ambitious but achievable, given the political will and commitment on the part of governments, working in partnership with the private sector," said Dr Hamadoun Touré, ITU Secretary-General, who serves as co-Vice Chair of the Commission alongside UNESCO Director-General Irina Bokova. The Commission is co-chaired by President Paul Kagame of Rwanda and Carlos Slim Helú, Chairman and CEO of Telmex and América Mov�l.
http://www.itu.int/net/pressoffice/press_releases/2011/42.aspx

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Nokia Debuts its First Windows Phones - No Mention of LTE

Nokia marked a significant step in its new direction with the introduction of its smartphones powered by Windows Phone.


Social networking is at the heart of the new Windows Phone-based Nokia Lumia range.


"Eight months ago, we shared our new strategy and today we are demonstrating clear progress of this strategy in action. We're driving innovation throughout our entire portfolio, from new smartphone experiences to ever smarter mobile phones," said Stephen Elop, Nokia President and CEO. "From the Nokia Lumia 800 to the Nokia Asha 201, we are bringing compelling new products to the market faster than ever before. I'm incredibly proud of these new devices - and the people of Nokia who have made this happen."


The Nokia Lumia 800 features a bold design, vivid colors (cyan, magenta and black), one-touch social network access, Internet Explorer 9, a 3.7 inch AMOLED ClearBlack curved display, a 1.4 GHz processor with hardware acceleration and a graphics processor, 16GB of internal user memory and 25GB of free SkyDrive storage for storing images and music. The estimated retail price for the Nokia Lumia 800 will be approximately 420 EUR, excluding taxes and subsidies. No mention of LTE.


The o-nonsense Nokia Lumia 710 offers exchangeable back covers, instant social & image sharing, IE9, and the same 1.4 GHz processor, hardware acceleration and graphics processor. The estimated retail price for the Nokia Lumia 710 will be approximately 270 EUR, excluding taxes and subsidies.
http://www.nokia.com

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Sprint and Clearwire to Extend Partnership into LTE

Sprint will continue to work with Clearwire as the companies roll out their respective LTE networks.


In its quarterly conference call, Sprint executives confirmed a non-binding cooperation agreement with Clearwire to work together on the technical specifications of the Clearwire LTE network. Specifically, the cooperation extends to the design and operations of the network. Sprint wants to ensure seamless handoffs in service layer control that meets its customer experience requirements. The agreement will cover the cell site selection and timing of site builds and involves working with OEMs to design devices and to include certain chipsets in devices. Further discussions are underway.


Sprint will be using FD-LTE while Clearwire has chosen TD-LTE technology. Devices would need to operate using both LTE flavors.


On the financial side, Sprint reported revenues of $8.3 billion and Adjusted OIBDA of $1.4 billion. Adjusted OIBDA grew sequentially and year-over-year driven primarily by strength in postpaid ARPU and continued growth in the prepaid wireless customer base.


Some highlights:


Postpaid wireless ARPU increased $3 from the year-ago period and the prepaid subscriber base has grown 23 percent since the third quarter of 2010.


The company achieved its best total company wireless net subscriber additions in more than five years. The company added nearly 1.3 million total net wireless subscribers, primarily driven by 304,000 net postpaid additions for the Sprint brand, net prepaid additions of 485,000 and net wholesale and affiliate additions of 835,000.


The iPhone has surpassed initial expectations. The iPhone is expected to be accretive for Sprint, and iPhone users
are expected to be among Sprint's most profitable customers.


Sprint expects the customer lifetime value of an iPhone customer to be at least 50% greater than a typical smartphone user. The carrier is counting on lower churn from iPhone users.


Costs related to Network Vision and the iPhone will impact cash by roughly $5.5 billion, partially offset by the benefits generated from Network Vision and the iPhone of $1.1 billion.


As part of Network Vision, Sprint will be decommissioning of over 25,000 iDEN sites.


As of Sept. 30, 2011, the company's total liquidity was approximately $5 billion, consisting of $4 billion in cash, cash equivalents and short-term investments and $1 billion of undrawn borrowing capacity available under its revolving bank credit facility. The company's next scheduled debt maturities of $2.3 billion are due in March 2012.
http://www.sprint.com

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Akamai Posts Q3 Revenue of $281.9 million, up 11% YoY

Akamai Technologies posted Q3 2011 of $281.9 million, an 11 percent increase over third quarter 2010 revenue of $253.6 million, and a 2 percent increase over second quarter 2011 revenue of $277.0 million. Net income (GAAP) was $42.3 million, or $0.23 per diluted share, a 6 percent increase from third quarter 2010 GAAP net income of $39.7 million, or $0.21 per diluted share, and a 12 percent decrease from second quarter 2011 GAAP net income of $47.9 million, or $0.25 per diluted share.

"We are pleased with Akamai's performance in the third quarter, as more customers adopted the Akamai Platform for their online businesses," said Paul Sagan, president and CEO of Akamai. "We have continued to develop the platform of choice for businesses seeking to capitalize on opportunities in mobile, cloud, security, and video, as well as manage the risks of the hyperconnected world." http://www.akamai.com

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