& cplSiteName &

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        ADD A COMMENT
    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.
    From The Founder
    Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
    Flash Poll
    Live Streaming Video
    Charting the CSP's Future
    Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
    LRTV Interviews
    Heavy Reading: The Web-Scale View

    1|18|17   |     |   (0) comments


    At Light Reading's 2020 Vision Executive Summit in Rome, Heavy Reading's former chief analyst Patrick Donegan shared insight from the recent web-scale operators report, which featured research on how web-scale operators view the market, the best web-scale companies to ...
    LRTV Custom TV
    Cisco's Cloud Scale Networking: Automation, Virtualization & Simplification

    1|18|17   |     |   (0) comments


    Cisco's Sanjeev Mervana outlines the latest innovations in networking technology at CES 2017 in Las Vegas.
    LRTV Custom TV
    ADVA Talks Innovation & the Future of Networking

    1|17|17   |     |   (0) comments


    Ray Le Maistre and Christoph Glingener, CTO of ADVA Optical Networking, discuss the current state of the industry, cooperation and collaboration, open innovation and the future of networking.
    LRTV Custom TV
    Cisco's Infinite Video Platform

    1|17|17   |     |   (0) comments


    Cisco's Infinite Video Platform allows service providers to deliver broadcast-quality video over IP networks. Infinite video supports many devices, from 4K TVs to tablets to game consoles. Join Cisco's Rajeev Raman for a brief tour and live demo.
    LRTV Interviews
    Masergy: Ability to Adapt Key for NFV

    1|16|17   |   6:40   |   (0) comments


    Speaking at Light Reading's 2020 Vision in Rome, Masergy's VP, Global Technology, Ray Watson, said agility is key to providing the mix and match NFV-based services that are driving business for the managed service provider today.
    LRTV Interviews
    Equinix: The Data Explosion

    1|13|17   |   4:16   |   (0) comments


    At Light Reading's 2020 Vision in Rome, Eric Schwartz, president of EMEA, Equinix, talked about how Equinix is helping its customers manage the influx of data today, and how it's preparing for a future filled with millions of connected IoT devices.
    LRTV Interviews
    Heavy Reading: The Changing Data Center Landscape

    1|12|17   |   6:05   |   (1) comment


    At Light Reading's 2020 Vision event in Rome, Heavy Reading's Senior Analyst Roz Roseboro talks about how virtualization is impacting data center evolution and how that evolution is affecting the relationship between service providers, data center operators and public cloud providers.
    LRTV Interviews
    Boingo: Prepping for Millions of Devices

    1|12|17   |   5:07   |   (1) comment


    At Light Reading's 2020 Vision in Rome, Boingo's CTO Derek Peterson discusses how wireless operators will address the needs of low-bandwidth and high-bandwidth apps at the same time, the need for more MHz, the impact of IoT and more.
    LRTV Interviews
    Comcast Shows Off Gig Gateway at CES

    1|11|17   |     |   (1) comment


    With its largest presence at CES in years, Comcast took the wraps off its long-awaited gigabit gateway and a new platform for managing the home WiFi network. Light Reading Senior Editor Mari Silbey sat down with EVP Chris Satchell to discuss the latest Comcast advance, and met with VP of Product Strategy and Development Andrea Peiro to walk through a demo of the ...
    LRTV Interviews
    Colt: End-to-End Key for 2017

    1|10|17   |   6:21   |   (0) comments


    At Light Reading's 2020 Vision Executive Summit in Rome, Nico Fischbach of Colt said having a multi-carrier, end-to-end service proposition is going to be key for 2017 -- and SD-WAN is instrumental in making it happen.
    From the Founder
    Cisco's Clemson on Mobile Cloud Video

    1|9|17   |     |   (1) comment


    Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators. "If you think about where we're going… whether it's a mobile application, or a video ...
    LRTV Custom TV
    VMware Telco NFV Solutions – Preparing for 5G & IOT

    1|9|17   |     |   (0) comments


    Shekar Ayyar, EVP & Corporate Strategy/General Manager of Telco for VMware, discusses VMware's Telco NFV solutions role and foundation for the Imminent Arrival of 5G & IOT.
    Upcoming Live Events
    May 15-17, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Infographics
    Hot Topics
    A Women in Comms Glossary
    Sarah Thomas, Director, Women in Comms, 1/18/2017
    Next Plugfest Gets G.fast Closer to Market
    Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 1/13/2017
    TV's Paradox: No HDR Without 4K
    Mari Silbey, Senior Editor, Cable/Video, 1/17/2017
    Nokia CTO: 2017 Is the Year 5G Gets in the Field
    Dan Jones, Mobile Editor, 1/19/2017
    Cable Has One Thing Verizon Needs
    Mari Silbey, Senior Editor, Cable/Video, 1/17/2017
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    Light Reading founder and CEO Steve Saunders chats with Sportlogiq CEO Craig Buntin about sports data analysis.
    Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
    Animals with Phones
    Live Digital Audio

    Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.