Tom Sweeney

It's a coming of age tale….

Posts Tagged ‘Wireless’

Zarlink turnaround continues as revenue targets exceeded

Posted by sweens on July 29, 2010

Kanata-based Zarlink Semiconductor beat its revenue targets by 18 per cent year-over-year in first-quarter results announced on Thursday.

The firm’s revenues reached $58.7 million, which exceeded their earlier revenue guidance of between $57 million and $58.7 million.

Zarlink stated this was due to “increasing customer demand across all core segments of the business,” particularly in communications products, where revenue grew by $3.9 million, and medical products, up $1.3 million.

Basic earnings were at $0.08 per share and $0.07 per diluted share.

Zarlink earlier sold its optical-products unit, which generated net proceeds of $13.5 million.

The firm said it expects to see more demand for its next-generation carrier chipset products, which includes voice-over-broadband and new efficiencies in wireless to improve the speed.

Customers such as Ciena Corp. and Teias Networks have integrated Zarlink’s ClockCenter timing platform into their video products, allowing them to lower power consumption and simplify the design, Zarlink stated.

“Q1 was a very strong start to fiscal 2011,” stated president and chief executive Kirk Mandy.

“While capacity concerns are impacting the global semiconductor industry, we are working closely with our foundry partners to ensure we continue to meet delivery commitments as end-market demand for our products escalates.”

As part of its work beyond semiconductor, the company grew its medical revenues to $6.6 million, from $5.3 million in the fourth quarter of fiscal 2010.

The money came from shipments of wireless radio modules that were allowed for medical applications after approvals from the United States’ chief medical approvals body, the Food and Drug Administration.

However, year-over-year revenue fell from $9 million in Q1 2010 to the $6.6 million posted in Q1 2011.

Zarlink further made the following forecasts for Q2 2011:

– Revenue between $58.5 million and $60.5 million;

– Gross margins between 50 per cent and 51 per cent;

РOperating expenses between $20.5 million and $21.5 million, excluding amortization of intangibles;

РQ2 earnings of $0.03 to $0.05 per share, excluding foreign exchange fluctuations.

http://www.obj.ca/Technology/2010-07-29/article-1631108/UPDATE%3A-Zarlink-turnaround-continues-as-revenue-targets-exceeded/1

Posted in News | Tagged: , , , , , , , , | Leave a Comment »

DragonWave has its sights set on big U.S. carriers AT&T, Verizon

Posted by sweens on December 15, 2009

Published on December 10th, 2009
Published on December 12th, 2009
Canadian Press

Traffic jams on wireless networks due to iPhone and other smartphone users surfing the Internet and downloading video are an opportunity for DragonWave CEO Peter Allen.

“The pressure on the mobile network is increasing dramatically, and frankly people who have got iPhones consume more of the Internet,” Mr. Allen said from the tech company’s Ottawa headquarters.

“It’s creating more traffic and it’s moving into mobile settings. So that’s where we’re involved.”

DragonWave Inc. (TSX:DWI) makes equipment for telecom companies that are building advanced networks with the goal of making mobile speeds similar or faster than the broadband experience at home and to ease congestion.

The company has already won key U.S. customer Clearwire, which is building a next-generation WiMax network that has started to launch in large U.S. cities.

“They’ve been very aggressive in their buildout and, of course, we’ve benefited from that.”

Clearwire which had been having some funding problems has secured an additional $1.5 billion to further expand its network across the United States.

Mr. Allen said U.S. carrier Sprint is also a DragonWave customer and the company is also looking for wins with AT&T and Verizon Wireless.

But he said DragonWave isn’t alone on that front.

“Most of the world with us is competing for AT&T and Verizon right now. So that’s what we’re after in North America.”

National Bank Financial analyst Kris Thompson said he expects Clearwire to remain an important customer in the next few years for DragonWave, it could be joined by AT&T and Verizon as they build their new networks.

“Our understanding is that DragonWave has been short-listed as a qualifying vendor into the Verizon Wireless deployment,” Mr. Thompson wrote in a recent note.

“We expect AT&T to be at least several months behind Verizon Wireless in awarding contracts that DragonWave can bid on.”

Mr. Allen said 68 per cent of the companies revenues are from North America.

Pacific Crest Securities analyst James Faucette said the opportunities for DragonWave to bid on contracts with Verizon and AT&T aren’t likely to come until late next year.

“While there has been obvious and understandable concern regarding DragonWave’s customer concentration with Clearwire (77 per cent of revenue in the August 2009 quarter), we now believe that Clearwire will be able to maintain its buildout plans during all of 2010 and 2011 now that it has raised additional capital,” he wrote in a research note.

DragonWave was formed in 2000 and has about 250 employees and also has offices in U.K., France, Dubai and Singapore. Its competitors include Israel’s Ceragon Networks and U.S.-based Harris Stratex.

In October, the company listed on the Nasdaq to increase its profile and raised an additional US$74.5 million in an equity financing.

DragonWave earned $6.3 million or 21 cents per diluted share for the quarter ended Aug. 31 compared with a loss of $1.7 million or six cents per share a year ago. Revenue for what was the second quarter of the company’s 2010 financial year more than tripled to $35.5 million, compared with $10.6 million a year ago.

In its outlook, the company has said it expects revenue for its 2010 financial year will reach at $150 million.

National’s Mr. Thompson said the company has potential to reach $200 million in annual revenues in its 2011 financial year and a long-term $20 share valuation.

“Investors should expect this stock to be volatile over the near-term as DragonWave’s Nasdaq IPO is concluded and as ownership in the company migrates from a value investor base to a momentum-driven investor base along with a higher concentration of U.S. investors,” he said.

By LuAnn LaSalle

http://www.obj.ca/Technology/2009-12-10/article-270823/DragonWave-has-its-sights-set-on-big-U.S.-carriers-AT%26amp%3BT%2C-Verizon/1

Posted in News | Tagged: , , , , , , , , , , , , , , | Leave a Comment »

Nortel to auction carrier networks division without initial bid

Posted by sweens on September 22, 2009

By Ottawa Business Journal Staff

Tue, Sep 22, 2009 3:00 PM EST

Nortel Networks Corp. has decided to auction off its carrier networks business and, unlike its previous division sales, is doing it without a “stalking horse” bidder this time.

The ailing telecom firm said its principal operating subsidiary, Nortel Networks Ltd. and its U.S. subsidiary Nortel Networks Inc. are planning to sell by auction the assets of its carrier networks division associated with the development of next-generation packet core network components.

The assets consist of software to support the transfer of data over existing wireless networks and the next generation of wireless communications technology, and include relevant non-patent intellectual property, equipment and other related tangible assets, the company said.

The purchaser will likely also get a non-exclusive licence of relevant patent intellectual property, Nortel added in its release.

The announcement marks the third Nortel business to be sold off since the company filed for bankruptcy protection in early 2009. However, this auction process is slightly different from the previous deals as it does not include an initial “stalking horse” bidder with a firm offer.

Bids will be accepted for the carrier networks business until the deadline of Oct. 16, with the auction to take place two weeks later.

The federal government on Sept. 17 gave the green light to the $1.13-billion sale of Nortel’s wireless business to Ericsson, and the company is now awaiting the final approvals for the $900-million sale of its enterprise solutions division to auction winner Avaya, which was also the “stalking horse” bidder for the business.

http://www.ottawabusinessjournal.com/295481941870324.php

Posted in News | Tagged: , , , , , , , , , , | 1 Comment »