Tuesday, November 11, 2014

Digital Realty and Zayo Team on Cloud to Data Center Connections

Zayo and Digital Realty announced an alliance agreement to expand the Digital Realty direct connect cloud offering.

Under the pact, Digital Realty customers will have the ability to access Zayo’s Connect to the Cloud platform, which offers access to more than 24 leading cloud providers, including Amazon Web Services (AWS), Microsoft Azure, and IBM SoftLayer.


Digital Realty clients will be able to deploy hybrid cloud solutions through Zayo’s Cloud connectivity platform. They will also be able to access pricing, place orders, and view existing and pending services through Tranzact, Zayo’s innovative shopping platform.

Digital Realty is one of the largest data center providers worldwide, with more than 130 locations across 11 countries. Zayo’s network, which spans more than 81,000 route miles and connects to more than 500 data centers, is connected to the majority of Digital Realty locations, enabling the two companies to offer complementary infrastructure to customers.

“This agreement builds on a long standing relationship with Zayo and our customers benefit from Zayo’s extensive network and ability to quickly deploy solutions for customers,” said Mike Bohlig, director of global alliances at Digital Realty. “Zayo’s footprint complements our global portfolio of data centers, enabling us to provide mutual customers with a diverse set of services, including connectivity to a wide range of cloud providers.”

http://www.zayo.com/network/cloud-connectivity
http://www.digitalrealty.com

Japan's KVH Deploys Cyan for Packet-Optical Transport

KVH has deployed Cyan’s Z-Series Packet-Optical Transport Platform and Blue Planet SDN software to enable its new high-capacity backhaul network in Japan.

Cyan said its Z-Series Packet-Optical Transport Platform provides KVH with integrated support for 100G coherent optical transponding and muxponding, scale up to 96-channels, and multi-degree ROADM for transporting up to 10 Tbps on a single fiber. Blue Planet, together with the Z-Series, delivers multi-layer capacity scalability, multi-vendor software control, service automation and orchestration for KVH’s backhaul service.

KVH is offering Nx100Ga connectivity from the major submarine landing stations in Japan, Chikura and Toyohashi, to central Tokyo and Osaka. KVH’s new backhaul service targets global service providers, Internet content providers, and carriers with network capacity requirements to connect their sub-sea capacity to these key metropolitan cities.

These two cable landing stations connect to KVH’s Points of Presence for the KVH DCNet service. This allows customers to expand their network capacity from these two cable landing stations to 60 plus data centers and more than 120 points of presence in the greater metropolitan areas of Tokyo and Osaka. Launched in June 2014, DCNet is a data center network service that connects more than 100 industry leading data centers in Japan, Hong Kong, Singapore and the United States.

“Cloud services, content delivery, wholesales services and more are driving big bandwidth growth and new service offerings across the APAC region. KVH is ensuring we can capitalize on this trend by expanding our backhaul network beyond 10 Tbps for 100G services with Cyan. Ultimately, this will help us differentiate ourselves in the market and become the leading solution for dedicated connectivity in Japan’s main metropolitan areas,” said Gint Atkinson, vice president of network strategy and architecture, KVH.

http://www.cyaninc.com


  • In September, Cyan announced a series of new features to its Cyan Z-Series Packet-Optical Transport (P-OTP) and Blue Planet SDN platforms, including support for MPLS-TP, support for additional Carrier Ethernet 2.0+ capabilities, hitless software upgrades, traffic policing and shaping, and support for a new 100G DWDM coherent CFP.
    Some highlights of the enhancements:


  • 8-degree, 96 channel ROADM – Cyan is adding to the existing family of single-slot 2- and 4-degree ROADM modules to support more flexible topologies and high-density 10G, 100G, and future 400G applications.
  • Integrated amplifier modules – Cyan is introducing a new family of integrated Erbium Doped Fibre Amplifier (EDFA) modules, which provide extended optical reach for metro, regional, and long-haul applications.
  • Four new APIs for SDN-powered packet-optical infrastructure: Optical Services, SNMP Trap Forwarding, Physical and Logical Inventory, and Site Manager API.
  • Support for MPLS-TP - over the coming months, Cyan will roll out new MPLS-TP capabilities for the Z-Series PSW modules that will ensure highly reliable and predictable delivery of Ethernet services between metros and across an MPLS core. When coupled with Cyan’s Blue Planet SDN Platform, MPLS-TP capabilities will enable resilient and scalable packet transport along with advanced end-to-end control, multi-vendor management, and service orchestration. Cyan also will ensure interoperability between existing PBB-TE networks and new MPLS-TP deployments.

Trade Agreement Could Eliminate Next Gen Silicon Tariffs

International trade negotiators and heads of governments appear to have reached a breakthrough in efforts to expand the WTO's Information Technology Agreement, which eliminates tariffs on high-tech products among 54 economies, including the U.S. and China.

A deal between the U.S. and China reached this week in Beijing is expected to pave the way for continued ITA negotiations in Geneva.

The Office of the U.S. Trade Representative said many of the products that would see tariff elimination under an expanded ITA are in key U.S. industries, including next generation semiconductors, which would see current tariffs of up to 25 percent reduced to zero.

http://www.ustr.gov/about-us/press-office/fact-sheets/2014/November/Supporting-Economic-Growth-Home-Abroad-Eliminating-Trade-Barriers-on-IT-Products

http://www.wto.org


ASSIA Wins Judgment Against BT on Dynamic Spectrum Mgt

The UK Court of Appeal in London affirmed a 2013 High Court judgment in favor of ASSIA on one important broadband management patent and determined that British Telecom infringes a second, more fundamental patent covering dynamic spectrum management techniques.

ASSIA said the Court of Appeal judgment holds that BT infringes two key ASSIA patents in its management of the rapidly growing “Next Generation Architecture” UK superfast broadband network. ASSIA’s patents at issue in the trial describe sophisticated techniques for rapidly optimizing millions of broadband connections without human intervention.

According to a recent BT announcement, 203,000 new customers subscribed to the operator’s superfast broadband offering between July and September 2014, bringing the total number of BT superfast broadband customers to 3.3 million as of September 30.

“Today’s ruling affirms ASSIA’s role as an innovator in the field of broadband performance optimization,” said ASSIA General Counsel Noah Mesel.  “Two dozen major operators around the world license our products because they recognize the significant value ASSIA’s software uniquely adds to their businesses.  As BT continues to grow the part of their business that infringes ASSIA’s patents, it is time for them to join companies such as AT&T, Verizon, Sky, and Bouygues, and license our software; otherwise BT should pay for infringing our patented technology.”

http://www.assia-inc.com

Altair Launches Computer-aided Engineering Suite on AWS

Altair launched its HyperWorks Unlimited - Virtual (HWUL-V) computer-aided engineering (CAE) suite for Amazon Web Services (AWS).

HWUL-V integrates unlimited use of the HyperWorks computer-aided engineering (CAE) suite with PBS Professional, a leading high-performance computing (HPC) workload manager, and application-aware portals for HPC access and remote visualization of big data.

HWUL-V will be offered in all AWS regions globally, including the United States, Europe, Brazil, Japan, Singapore, and Australia, with customers gaining seamless access to HPC-driven CAE regardless of location.

"Leveraging HPC for CAE has historically been restricted to those with significant resources and access to expensive hardware," said Sam Mahalingam, Chief Technical Officer of Altair.  "HyperWorks Unlimited - Virtual eliminates the need to build and support information technology infrastructure to support HPC.  This solution provides access to a wealth of highly accurate solvers that enable engineers to simulate a broad range of physics, along with a world-class workload manager, remote data visualization, and data management, making infinite design exploration affordable, simple, and convenient."

http://www.altair.com/hw-unlimited

DT Establishes one of the Largest European Investment Funds

Deutsche Telekom is launching what is expected to be one of the largest venture investing funds in Europe.

Deutsche Telekom Capital Partners (DTCP) will have a fund volume of EUR 500 million for a 5-year period, effectively doubling the company's existing investments with T-Venture. DTCP will also advise Deutsche Telekom on existing investments in STRATO, Interactive Media, Scout, Deutsche Telekom Innovation Pool (TIP) and T-Venture.

"DTCP combines the expertise and strength of a large corporation with the agility and flexibility of a small investment company: the best of both worlds to take Deutsche Telekom forward," said Tim Höttges, CEO of Deutsche Telekom.

"I’m excited about the job of unifying Deutsche Telekom's innovation investments in one place, and being able to attract world-class talent to Germany to create a truly unique innovation engine," said Vicente Vento, currently Senior Vice President of Mergers & Acquisitions at Deutsche Telekom and CEO-designate of DTCP.

DTCP will launch in early 2015.

http://www.telekom.com/media/company/255972

Mimosa Unveils Its Hotspot-to-the-Home Gateway

Mimosa Networks, a start-up based in Campbell, California, introduced its C5i Hotspot-to-the-Home Gateway for connecting to urban Wi-Fi networks.

Mimosa’s C5i packs a 4x4:4 Multi-User MIMO radio that leverages beamforming technology for automatic antenna aiming.  The device is self-installable and can connect to any outdoor 5 GHz Wi-Fi access point or to a Mimosa access point, which uses a TDMA protocol to optimize performance.

“Consumers can easily mount the device to a window and connect with the access point of their local Internet service provider. With a single device, the C5i can bring the Internet into the home at incredible speeds of up to 500 Mbps,” says Brian Hinman, CEO of Mimosa.


Mimosa Networks, a pioneer in gigabit wireless technology, leverages the most advanced Wi-Fi technology to design and manufacture outdoor gigabit wireless platforms for service providers demanding fiber speed networks. Mimosa technology provides the highest level of scale, capacity and reliability for multiple verticals and applications. Founded in Silicon Valley in 2012, the company has so far raised a total of over $38 million in venture capital funding. Mimosa is led by Brian Hinman, notable CEO and founder of 2Wire, Polycom and PictureTel and includes experienced executives and key talent from leading telecommunications and consumer product companies.

http://mimosa.co/

  • In August, Mimosa Networks unveiled its B5 Backhaul radio with coordinated Massive MIMO technology and Mimosa Cloud Services (MCS), featuring advanced network-wide planning and analytics. The company cited a number of innovations:

  • Advanced Colocation ­ -- the B5 radio makes the most of available spectrum. Using both GPS and GLONASS to maximize satellite sync through precision timing as well as sophisticated RF isolation techniques, the B5 radio offers maximum spectrum re-use for colocated devices.
  • Spectrum Multiplication -- leverages coordinated Massive MIMO technology, allowing colocated radios to deliver 16 MIMO streams, and 4 Gbps of throughput, all while sharing the same channel. 
  • Auto Everything ­-- the first radio to offer real-time spectrum analysis without service interruption. The B5 radio automatically optimizes bandwidth, frequency and power use based on historical and real-time data ­ allowing the radio to immediately adapt to any environmental change.
  • Dual Link ­-- actively load balances across two non-contiguous channels to provide unprecedented resiliency against interference.
  • Mimosa Cloud Services -- a cloud-based planning and analytics tool set for wireless service providers.  Enhanced with Google Maps mapping service, Mimosa's network design features allow operators to visually plan and design links while viewing their entire network in one location. Additional topology and obstruction information as well as environmental ITU-based data provide deeper understanding of how a link might operate in real-life.
The B5 Backhaul radio is available for order in two versions ­ an antenna-integrated 5 GHz backhaul radio (B5); and a connectorized radio-only version (B5c).  The B5 (List Price: $899 for B5, $839 for B5c) will begin shipping to customers in Fall 2014.

  • Mimosa has raised over $38 million in venture funding.





Mimosa Networks, a start-up based in Campbell, California, unveiled its B5 Backhaul 


Broadcom Looks to Channel Partners to Accelerate IoT Market

Broadcom is working with more than 40 channel partners to accelerate the adoption of Internet of Things (IoT) and high volume Ethernet IC markets. The company said it is introducing a new sales model to support a broad ecosystem needed to meet increasing demand from thousands of developers.

Broadcom's new channel partners include module manufacturers, value-added resellers, independent design houses, original device manufacturers (ODMs) and an e-commerce distribution channel. The global network is aimed at providing greater access to its WICED Smart and WICED Wi-Fi platforms and leading-edge RoboSwitch, StrataConnect and NetXtreme Ethernet solutions.

"As the IoT market continues to evolve, we're seeing increased demand from thousands of emerging developers wanting to get their hands on our low-cost, highly integrated development platforms, modules and resource materials," said Vincent Brocato, Broadcom Senior Director, Global Channel. "By making our technology easy to use and widely available through our expanded global channel, companies both large and small now have immediate access to the technology and tools required to bring their innovative ideas to life."

http://www.broadcom.com

Verizon Installs Solar Panels at Long Island HQ

Verizon is installing 7,000 SunPower solar panels on the roof of its Long Island headquarters complex in Garden City, NY.

The same building already generates 6 million kilowatt hours of green energy annually from a fuel-cell system built in 2005.

Upon completion of the new Long Island solar project, Verizon will operate more than 6.7 megawatts of green energy systems in the state. Other company projects in the state include Fuel cells at five New York City telecommunications-switching locations (one each in Staten Island and Queens, and three in Brooklyn) and at a data center in Elmsford in Westchester County. Altogether, Verizon has invested more than $60 million in green energy in New York.

http://www.verizon.com/about/news/new-solar-project-long-island-verizons-total-green-energy-investments-new-york-exceed-60/

Hortonworks Files for IPO

Hortonworks, a start-up based in Palo Alto, California, filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission relating to a proposed initial public offering of its common stock.

Goldman, Sachs & Co. and Credit Suisse Securities (USA) LLC will act as joint lead book-running managers for the offering, RBC Capital Markets, LLC will act as book-running manager, and Pacific Crest Securities LLC, Wells Fargo Securities, LLC and Blackstone Capital Markets will act as co-managers.

http://hortonworks.com/press-releases/hortonworks-files-registration-statement-sec-initial-public-offering/


  • Hortonworks develops, distributes and supports a 100% open source Apache Hadoop data platform that deeply integrates with existing IT investments and upon which enterprises can build and deploy Hadoop-based applications. The company has deep relationships with the key strategic data center partners, including Microsoft, SAP, Teradata, HP and others.
  • In July 2014, HP announced a $50 million equity investment in Hortonworks, a start-up based in Palo Alto, California, that offers enterprise Apache Hadoop solutions. The companies said the investment builds on the reseller agreement put in place last year. The companies also plan to integrate the Hortonworks Data Platform with key HP technologies including the marquee HP HAVEn offering.
  • In March 2014, Hortonworks announced an oversubscribed $100 million funding round to support it enterprise Apache Hadoop solutions. The new funding round was led by funds managed by BlackRock and Passport Capital, joined by all existing investors.

Monday, November 10, 2014

Juniper Appoints New CEO following Board Level Dispute

Juniper Networks appointed Rami Rahim as chief executive officer effective immediately following the sudden resignation of Shaygan Kheradpir as CEO and director of the company. Juniper said the followed a review by its board of directors regarding Kheradpir's conduct in connection with a particular negotiation with a customer.

 Rahim started at Juniper as employee #32 and worked as an engineer on Juniper's first product, the M40 core router. Rahim was also one of the original architects of the MX, Juniper's flagship routing platform. He most recently served as executive vice president and general manager, Juniper Development and Innovation.

 Rahim holds 17 US Patents in networking technologies, a Bachelor of Science degree in electrical engineering from the University of Toronto, and a Master of Science degree in electrical engineering from Stanford University.

http://www.juniper.net/

  • Shaygan Kheradpir took over as CEO of Juniper Networks on January 1, 2014. Kheradpir replaced Kevin Johnson, who in July 2013 announced his plan to retire as CEO.  Kheradpir joined Juniper Networks from Barclays PLC, where he served as the chief operations and technology officer, and as a member of its executive committee. Prior to joining Barclays, he was executive vice president and chief information and technology officer at Verizon Communications. He holds a bachelor's, master's, and Ph.D. in electrical engineering from Cornell University.

Pica8's CrossFlow Combines OpenFlow-based Policy with L2/L3

Pica8 introduced a new capability that lets its PicOS bare metal switch operating system integrate OpenFlow-based applications and business-logic policies into existing Layer-2 / Layer-3 networks.



The new CrossFlow Networking lets administrators run L2/L3 protocols and OpenFlow on the same switch at the same time. This lets users leverage OpenFlow for policy-driven applications to drive business logic into the network, while leveraging their network topology and protocols like OSPF and BGP for the most efficient packet transport and performance.

Pica8 said its CrossFlow Networking brings the potential to significantly accelerate SDN adoption because customers are able to run OpenFlow on the existing L2/L3 network.

“Some customers have made commitment to OpenFlow in green field deployments, but networking shops with existing infrastructure want to be able to use OpenFlow in use cases where it makes sense,” said Steve Garrison, vice president of marketing and Pica8. “For the first time, CrossFlow mode allows users to leverage both ways of thinking – Layer-2 / Layer-3 and OpenFlow – to deal with networking challenges appropriately on the same switch.”

Some sample use cases include:
  • In a traditional data center that uses Layer-2 / Layer-3 switching and routing, monitoring and tapping can be done on the switches with rules triggered by the OpenFlow protocol.
  • In an OpenFlow data center, the edge devices need to interact with traditional switching/routing devices (using spanning tree, OSPF, BGP, and other Layer-2 / Layer-3 
Available in PicOS 2.4, CrossFlow allows every port in the bare metal switch the ability to act as either a legacy or a CrossFlow port. A legacy port uses traditional Layer-2 / Layer- 3 switch (OVS) commands can be used, either locally via OVS commands or via an SDN controller using OpenFlow and OVSDB.

http://www.pica8.com/


  • Pica8 currently claims over 320 customers.
  • Pica8 is based in Palo Alto, California with development offices in Beijing.
  • In October, Pica8 announced $12.5 million in Series B funding from a group of investors led by VantagePoint Capital Partners, Cross Head and Pacific Venture Partners (PVP), bringing its total funding to date to over $20 million.

Chicago's StarWave Exchange Implements Ciena’s 8700 Packetwave

StarWave, a Chicago-based research and education (R&E) communication services exchange facility, is deploying Ciena’s 8700 Packetwave Platform for 100GbE bandwidth interconnection. This upgrade will facilitate transfers for multiple sciences, such as data flows used by high energy physicists investigating particle collisions, and medical researchers sharing massive genomic data files and high-resolution images of protein strands used for cancer research.

The StarWave multi-100 Gbps exchange, located at the StarLight International/National Communications Exchange Facility Consortium, supports large-capacity, long duration, and low latency individual data flow transfers.

Multiple national and international 100 Gbps demonstrations leveraging StarWave are expected at next week's Supercomputing (SC14) conference in New Orleans.

“Ciena’s technology plays a pivotal role in supporting big data, high-performance computing and R&E efforts, improving the way researchers interact and conduct complex, data-intensive scientific discovery. Our 8700 platform enables the needed collaboration in the R&E community by offering massive scalability to carry huge science data flows in a platform that is easy to set up, deploy, and manage,” stated Rod Wilson, Senior Director of External Research, Ciena.

http://www.ciena.com/about/newsroom/press-releases/


  • In June 2014, Ciena introduced its programmable, 8700 Packetwave Platform, a multi-terabit Ethernet/DWDM switch designed to transform metro and inter-data center networks. The new 8700 Packetwave integrates Ethernet and MPLS-TP switching with Ciena’s WaveLogic Photonics into a single, scalable platform. It leverages Ciena’s Service-Aware Operating System, OneControl Unified Management System, and SLA portal.  It can also be deployed in conjunction with Ciena’s V-WAN software to give customers performance-on-demand cloud service connectivity.

Facebook's Messenger Reaches 500 Million

Facebook's Messenger app has reached a big milestone: 500 million active users per month.  The app launched in 2011.

http://newsroom.fb.com/news/2014/11/messenger-reaches-500-million-2/


  • In February, Facebook acquired WhatsApp.  At the time, What'sApp claimed 450 million using the service each month, of whom 70% were active on any given day.

CyrusOne Picks BTI for Cloud + DC Connectivity

CyrusOne is now deploying BTI’s Cloud Networking and Data Center Interconnect Solutions in metro Chicago and metro Virginia.

Specifically, CyrusOne has deployed the BTI 7800 Series Intelligent Cloud Connect platform, the BTI 7000 Series Packet Optical platform with ROADM and the BTI proNX Service Manager to connect CyrusOne data centers in Lombard, IL to the main downtown Chicago telecommunications hub. Additionally, CyrusOne is capitalizing on BTI’s solutions to expand its market reach by connecting a new data center facility in the Northern Virginia metro market to the CyrusOne national network footprint.

The SDN-enabled BTI 7800 Series Intelligent Cloud Connect is purpose-built to integrate high-capacity optical switching and MPLS Label Switch Routing (LSR) with Network Functions Virtualization (NFV)-based applications.

The BTI 7000 Series is a modular system that unifies packet and optical service delivery into one platform for network-layer consolidation and improved efficiencies. It integrates Ethernet switching, 10G WDM optical layer and Dynamic Optical Layer ROADM-on-a-blade support to simplify network deployment and operations.

http://www.btisystems.com

Obama Urges FCC to Move on Net Neutrality

President Obama is urging the FCC to act now to reclassify consumer broadband service under Title II of the Telecommunications Act, setting a legal basis to create a new set of rules protecting net neutrality.  In a statement, Obama said he believes the bright-line rules should include:

  • No blocking. If a consumer requests access to a website or service, and the content is legal, your ISP should not be permitted to block it. That way, every player — not just those commercially affiliated with an ISP — gets a fair shot at your business.
  • No throttling. Nor should ISPs be able to intentionally slow down some content or speed up others — through a process often called “throttling” — based on the type of service or your ISP’s preferences.
  • Increased transparency. The connection between consumers and ISPs — the so-called “last mile” — is not the only place some sites might get special treatment. So, I am also asking the FCC to make full use of the transparency authorities the court recently upheld, and if necessary to apply net neutrality rules to points of interconnection between the ISP and the rest of the Internet.
  • No paid prioritization. Simply put: No service should be stuck in a “slow lane” because it does not pay a fee. That kind of gatekeeping would undermine the level playing field essential to the Internet’s growth. So, as I have before, I am asking for an explicit ban on paid prioritization and any other restriction that has a similar effect.

http://www.whitehouse.gov/net-neutrality

Rackspace Brings in $1,405 Per Server Per month

Rackspace reported net revenue for the third quarter of 2014 was $460 million, up 4.2 percent from the previous quarter and 18.3 percent from the third quarter of 2013. Net income was $26 million for the quarter, up 14.6 percent from the previous quarter.

"We are pleased with our operating performance this quarter and encouraged by the momentum we are seeing in the business,” said Taylor Rhodes, president and CEO of Rackspace. "We are poised to capitalize on the massive opportunity ahead in the managed cloud market, where we see increasing demand for our managed services and expertise. And while we made strong progress this year, we’re determined to continually improve our execution and seize our future.”

Some highlights:

  • Total server count in the third quarter of 2014 increased to 110,453, up from 107,657 servers at the end of the previous quarter. 
  • Revenue per server grew to $1,405 per month up from $1,375 in the previous quarter.
  • Net income margin for the quarter was 5.6 percent compared to 5.1 percent for the previous quarter.
  • On a worldwide basis, Rackspace employed 5,939 Rackers as of September 30, 2014, up from 5,798 in the previous quarter.

http://www.rackspace.com

UK to Auction 2.3 GHz and 3.4 GHz Spectrum

Ofcom, the official regulator for the UK, plans to auction spectrum in the 2.3 GHz and 3.4 GHz bands in late 2015 or early 2016. The bands are expected to be of interest to the mobile industry. Ofcom intends to hold an auction for a total of 190 MHz of spectrum in the two bands - equivalent to around three-quarters of the airwaves released by Ofcom through the 4G auction in 2013. The spectrum is currently used by the Ministry of Defence.

Ofcom noted that many existing mobile handsets from major manufacturers, including the Apple iPhone 5 and 6, HTC Desire and Samsung Galaxy, are already compatible with the 2.3 GHz spectrum in other markets. The band is so far being used for high-speed 4G mobile broadband networks in 10 countries outside Europe, including China, India and Australia.

The 3.4 GHz band is currently being used for 4G wireless broadband in six countries including the UK, Canada and Spain.

http://media.ofcom.org.uk/news/2014/new-spectrum-auction/

Plexxi Names Richard Napolitano as CEO

Plexxi, a start-up specializing in next-generation networking, named serial entrepreneur Richard Napolitano as CEO.

Napolitano has a long track record in the technology industry, including president of the Unified Storage Division at EMC Corporation and president and general manager of U.S. sales for Sun Microsystems, which was acquired by Oracle. He also served as chairman, CEO and president of Pirus Networks, which was acquired by Adaptec.

http://www.plexxi.com

NeoPhotonics Sees 40/100G Revenue Growth of 22.9% Sequentially

NeoPhotonics announced Q3 2014 revenue of $81.6 million, an increase of $4.1 million, or 5.3%, from the second quarter of 2014 and up $4.8 million, or 6.2%, from the third quarter of 2013. Gross margin was 24.6%, up from 18.8% in the second quarter of 2014, and up from 23.7% in the third quarter of 2013.  Net loss was $1.9 million, a decrease from a net loss of $6.8 million in the second quarter of 2014 and from a net loss of $9.4 million in the third quarter of 2013.

The company noted sequential 40/100G revenue growth of 22.9%.

“We are pleased to announce that we again achieved record revenue this quarter. Our previously announced profit improvement actions are taking hold and moved us into non-GAAP profitability. We expect to operate in a manner focused on our path to profitability; managing expenses tightly, and continuing to operate so as to strengthen our balance sheet,” said Tim Jenks, NeoPhotonics Chairman and CEO. “Equally important, we believe our product focus on 100G, enhanced by our pending acquisition of EMCORE’s tunable laser product line, positions us to be a major contributor to this expanding market segment, and therefore benefit from the accelerating worldwide deployments of 100G systems,” continued Mr. Jenks.

http://www.neophotonics.com


  • Last month, NeoPhotonics agreed to acquire EMCORE Corporation's tunable laser and transceiver product lines for approximately $17.5 million, which consists of $15.0 million and a working capital and inventory adjustment of approximately $2.5 million.  The deal includes production and development fixed assets, inventory and intellectual property for the ECL-based Integrable Tunable Laser Assembly (ITLA), micro-ITLA, Tunable XFP transceiver, tunable optical sub-assemblies and Integrated Coherent Transmitter (ICT) products for 10, 40, 100 and 400G telecommunications networks.

NeoPhotonics said it intends to add the EMCORE tunable lasers to its current product line and to continue to serve EMCORE’s current customers without interruption. EMCORE has supported these products from its facility in Newark, California and NeoPhotonics expects to integrate this business into in its existing Silicon Valley facilities. EMCORE’s revenue for this product line has been approximately $9 million per quarter. The acquisition is expected to be accretive to NeoPhotonics by the second quarter of 2015.