Light Reading
Welcome to 'Bit Parts,' a regular roundup of the technology, R&D, financial, and jobs news from the communications components sector.

Bit Parts: Cashing In on Chips

Carolyn Mathas
News Analysis
Carolyn Mathas
4/25/2014
50%
50%

Welcome to "Bit Parts," a regular roundup of the technology, R&D, financial, and jobs news from the communications components sector.

Here are the latest headlines that caught our eye:

  • FPGA and SoC specialist Altera Corp. (Nasdaq: ALTR) reported higher-than-expected first-quarter revenues of $461.1 million, up 12% from a year ago. "The quarter exceeded our expectations as stronger than anticipated Chinese LTE deployments drove wireless sales," said John Daane, president, CEO and chairman (yes, three jobs in one!), in the company's earnings release. The company's share price rose more than 4% to $35.50 in after-hours trading late Thursday. Read more about Altera in our recent look at the company's recent developments, The M&A Way to Achieve 400G Goals.

  • Comms chip giant Broadcom Corp. (Nasdaq: BRCM) also posted better than anticipated financials late Thursday, reporting revenues of $1.98 billion, though that was slightly down from a year ago. But despite the good results, the firm's stock dipped by about 2% in after-hours trading to $30.50 due to concerns about fierce competition in the 4G chip sector, as this Reuters article notes.

  • Continuing the trend, Freescale Semiconductor Inc. also reported first-quarter results that exceeded expectations, announcing revenues of $1.13 billion that were boosted by network rollouts in China. The company noted that sales for its Digital networking division were up by about 23% year-on-year at $249 million, with the growth "broad based across service provider, enterprise and general embedded segments. Sequentially, the networking business benefited from higher sales of service provider equipment, including wireless base stations in China." That wasn't enough to stop its stock dipping by 1.5% in after-hours trading to $25.50, though that did follow a 4.4% rise during Thursday.

  • ATCA specialist Kontron AG has helped Canadian video optimization partner Vantrix Corp. develop two transcoding solutions designed to help content service providers, including cable operators and telcos, deliver more efficient multiscreen video services. The multiscreen live transcoder and VoD (video-on-demand) transcoder, which support multiple formats (including 4K UHD and Adaptive Bitrate delivery), both run on Kontron's SYMKLOUD platform. Kontron recently announced full-year 2013 revenues of €445.3 million ($616 million), in line with expectations. (See this Kontron release and Kontron Intros Symkloud.)

  • ATCA management software could accelerate complex systems integration by up to 40%, according to Artesyn Embedded Technologies. With its System Services Framework (SSF) management suite for Artesyn ATCA systems, customers can configure and monitor the hardware and software elements of a single ATCA shelf or multiple shelves. A GUI delivers a view of system configuration, events and alarms, and a way to configure switches or payload blades and system access.

  • Chinese FTTH component vendor APAT Optoelectronics Components Co. is to take over Avago Technologies Pte. 's Taiwan R&D Center, including the staff and facilities. The R&D Center has expertise in 10Gbit/s and 40Gbit/s laser and transceiver design. As part of the deal, Avago is to supply chips that APAT will integrate into its transceivers. APAT has also forged a strategic partnership with chip vendor Semtech Corp. (Nasdaq: SMTC), which will supply ICs for all of the Chinese vendor's products. Avago is in the process of buying LSI Corp. (NYSE: LSI) for $6.6 billion as a way to get into the storage chips sector and reduce its reliance on the wireless market. (See Avago to Buy LSI for $6.6B.)

  • Next-gen electro-optic device developer Lightwave Logic Inc. has picked up an exclusive worldwide license agreement to Corning's organic electro-optical materials. Lightwave will integrate Corning's organic chromophores into its portfolio of electro-optic polymers for use in communications, computing, power and power storage apps that need nonlinear optical properties. The Corning agreement adds to the growing number of combinations of electro-optical materials specifically targeting data centers and telecom networks.

  • Communications and military use of high-energy lasers (HEL) are hamstrung by legacy laser systems size, weight, power needs and atmospheric turbulence. To tackle that issue, DARPA's Excalibur program has developed a 21-element optical phased array (OPA), each array element driven by fiber laser amplifiers that can hit a target more than four miles away. Continued development and testing may lead to multi-100 kilowatt-class HELs in a package 10 times lighter and more compact than legacy high-power laser systems.

  • The market for packet-optical switch infrastructure is growing rapidly, propelled by the continued rapid uptake of 100G in long-haul networks. That's the main finding in the latest edition of Heavy Reading 's Next-Gen Core Packet-Optical Market Tracker. To find out more, see Core 100G Fuels Packet-Optical Switching Growth.)

  • Still with Heavy Reading, "The Rise of 100G & Terabit Transport Networks" is a recent Heavy Reading report that "tackles the challenges and opportunities of high-speed DWDM transport, in both long-haul and metro networks, looking at both 100G and B100G [Beyond 100G]." The report presents comprehensive forecasts for long-haul and metro DWDM transport, with breakouts for units shipped, capacity shipped, revenue contribution by port speed and more. In addition, the report analyzes key enabling technologies for B100G and provides a roundup of significant B100G trial activity over the past year. (See Going Beyond 100G? Not So Fast….)

  • According to a recent Frost & Sullivan report, "Analysis of the Global Fiber Optic Test Equipment Market," 2013 revenues for this market reached $603.8 million, and is set to increase to $884.9 million by 2020 thanks to significant mobile rollouts that will include fiber-to-the-antenna (FTTA), fiber-to-the-tower (FTTT), distributed antenna systems (DAS), and cloud or centralized-radio access networks (CRAN).

    — Carolyn Mathas, contributing editor, special to Light Reading

    (3)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View
    nasimson
    50%
    50%
    nasimson,
    User Rank: Light Sabre
    4/28/2014 | 11:26:55 PM
    given the political and economic history
    Chinese equipment manufacturers buying Taiwanese R&D centers! Given the political and economic history of the two countries, this is nothing short of magnificent. I am impressed to see that Chinese companies are climbing that curve.
    DOShea
    50%
    50%
    DOShea,
    User Rank: Blogger
    4/27/2014 | 5:04:22 PM
    Altera
    Interested to know how those optical acquisitions are paying off. Maybe LTE can keep Altera busy until 400G picks up.
    kq4ym
    50%
    50%
    kq4ym,
    User Rank: Light Sabre
    4/27/2014 | 8:42:02 AM
    Cashing In On Lasers
    With a suspicion that high tech military hardware often leads the pack in producing profits (once the package is sold to the government of course) the high energy laser projects seems like a likely money maker. The developent of lower weight hardware systems, with a longer range will surely be a win-win for someone. Of course, these deals are often highly speculative and depend more than one would like on factors unknown.
    Flash Poll
    From The Founder
    It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
    LRTV Interviews
    From 4G to 5G: Alcatel-Lucent's Dave Geary

    11|25|14   |   09:09   |   (1) comment


    Dave Geary, President of Wireless at Alcatel-Lucent, talks about the evolution of the 4G market, small cells, partnerships, 5G and the IoT.
    LRTV Huawei Video Resource Center
    Building a Secure Telefonica Network With Huawei's High-End Firewall

    11|24|14   |   4:37   |   (0) comments


    Andrew Davies, IP architect of the Telefonica, a leading digital communications company, discusses the Huawei security gateway solution and putting the solution into the testbed.
    LRTV Huawei Video Resource Center
    Huawei Partners with Spirent to Verify CE12816's 10GE Port & TRILL Networking Capabilities

    11|24|14   |   2:50   |   (0) comments


    Spirent Communications is the world's leading supplier for telecom testing appliances and solutions. Spirent has been in a close partnership with Huawei for a long time.
    LRTV Huawei Video Resource Center
    Saudi Airlines & Its ICT Transformation

    11|24|14   |   2:07   |   (0) comments


    In this video, Saudi Airlines discusses its network problems and how Huawei's Agile Network is its all-in-one solution.
    LRTV Huawei Video Resource Center
    Huawei's Agile Switch Benefiting Saudi Arabia's Yamamah Hospital

    11|24|14   |   2:40   |   (0) comments


    Saudi Arabia's Yamamah Hospital speaks about how Huawei's Agile Switch has improved the medical service's network infrastructure.
    LRTV Huawei Video Resource Center
    FanPlay & Huawei Build a Wireless Agile Smart Stadium

    11|24|14   |   2:13   |   (0) comments


    FanPlay is a cloud-based white label service, which is effectively a football fan engagement platform underpinned by mobile payment technology.
    LRTV Huawei Video Resource Center
    Building an Agile Stadium

    11|24|14   |   3:54   |   (0) comments


    Stadiums may be thousands of tons of concrete and steel, but they now need to be agile. Being at the stadium may not be as alluring as it once was. Sports franchises and stadium operators discuss how to get fans back.
    LRTV Huawei Video Resource Center
    Huawei Helps ChinaCache Tackle Challenges in the Internet Industry

    11|24|14   |   3:09   |   (0) comments


    ChinaCache is China's largest content distribution network supplier. Huawei's CE12800 has provided ChinaCache with very strong support in its establishment of an infrastructure network.
    LRTV Huawei Video Resource Center
    Cefinity on Managed Security Services & Next-Generation Firewall

    11|24|14   |   7:05   |   (0) comments


    Cefinity is a cloud management service provider in Southeast Asia. Ivan Zhang, CEO of the company, discusses the implementation of security service management in the cloud era.
    LRTV Huawei Video Resource Center
    Huawei's Agile Gateway in the Eyes of Cefinity

    11|24|14   |   2:11   |   (0) comments


    Cefinity is a managed service provider for enterprise networks. The company currently uses Huawei's AR series routers for the most complete range of functions. CEO Ivan Zhang speaks about the advantages of the AR series routers.
    LRTV Huawei Video Resource Center
    CTO of Bus-Online Talks About Huawei's Agile Gateway

    11|24|14   |   2:53   |   (0) comments


    Bus-Online covers around 100 million users everyday. In addition to providing mobile TV, and advertising services to the public, Bus-Online has also entered the field of mobile Internet.
    LRTV Huawei Video Resource Center
    Amsterdam ArenA as an Agile Campus

    11|24|14   |   3:31   |   (0) comments


    The Amsterdam ArenA, home of the Ajax soccer team, can be a crowded space. ArenA has partnered with Huawei to work on bringing ample bandwidth to 53,000 people at the same time.
    Upcoming Live Events
    December 2, 2014, New York City
    December 3, 2014, New York City
    December 8-10, 2014, Reykjavik, Iceland
    February 10, 2015, Atlanta, GA
    April 14, 2015, New York City, NY
    May 6, 2015, McCormick Convention Center, Chicago, IL
    May 13-14, 2015, The Westin Peachtree, Atlanta, GA
    June 9-10, 2015, Chicago, IL
    Infographics
    Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
    Hot Topics
    $38.3M: Ain't That a Kik in the SMS
    Sarah Reedy, Senior Editor, 11/20/2014
    Do You Have a 2020 Vision?
    Dennis Mendyk, Vice President of Research, Heavy Reading, 11/21/2014
    Net Neutrality Even Mark Cuban Could Love
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 11/26/2014
    $35B+ Spectrum Auction Dings Verizon, Shines Dish
    Dan Jones, Mobile Editor, 11/24/2014
    Operators Should Block Ads to Get Their Cut, Startup Says
    Sarah Reedy, Senior Editor, 11/24/2014
    Like Us on Facebook
    Twitter Feed