Light Reading

Bit Parts: Cisco Funding Up for Grabs

Carolyn Mathas
News Analysis
Carolyn Mathas
5/5/2014
50%
50%

Money matters dominate the latest roundup of the technology, R&D, financial, and jobs news from the communications components sector, with Cisco leading the way.

  • Cisco Investments, the venture funding operation of the IP networking giant, is boosting the money it is making available to early-stage companies during the next few years by $150 million. Cisco Systems Inc. (Nasdaq: CSCO) has a number of "themes" driving its investment decisions, and noted in its official announcement that chipsets, enabling technologies for the Internet of Things (IoT), storage, and analytics are all among its key focus areas. That's got to be good news for the components sector, right? Cisco Investments currently has a portfolio valued at more than $2 billion, and has more than 80 direct investments. (See Cisco Investments Gets $150M Boost.)

  • The wireless market is driving lots of new business for CommScope Inc. , which provides a broad range of sub-systems for fixed line, mobile and cable networks to systems vendors and network operators. The vendor just announced a 16% year-on-year increase in first quarter revenues to $935 million, driven primarily by increasingly demand in the US and EMEA (Europe, Middle East, and Africa) for the company's mobile cell site and small cell distributed antenna solutions. For more details, see this earnings announcement. (See Capex Trend Points to Less Seasonality – Analysts, CommScope Raises Q1 Guidance on Wireless Strength, and The Case for Indoor Wireless Coverage .)

  • Optical components specialist JDSU (Nasdaq: JDSU; Toronto: JDU) also just announced its latest financials, but its numbers were hit by "later-than-expected carrier orders." (See Capex Slowdown Slams JDSU.)

  • Fellow optical components vendor Oplink Communications Inc. (Nasdaq: OPLK), meanwhile, is experiencing "a bit of softness in our optical business," according to Chairman and CEO Joe Liu. In the company's fiscal third quarter, which ended March 30, revenues at $48.1 million were up from the $44.1 million of a year ago. However, non-GAAP net income of $0.3 million was down from $3.4 million a year ago. Find out more by reading the company's earnings report.

  • Amphenol Corp., which makes fiber connectors, interconnect systems, and coaxial and flat-ribbon cable, reported first quarter revenues of $1.25 billion and earnings per share before one-time costs (non-GAAP) of $0.99, up by 15% and 14% respectively compared with a year ago. See this financial statement for more details.

  • M/A-COM Technology Solutions Inc. has added 17 high-performance gallium nitride on silicon (GaN on Si) RF power transistors and amplifiers to its portfolio of products targeted at multiple sectors, including wireless infrastructure and defense communications. For more details, see this announcement. The new products are the direct result of the $26 million acquisition of Nitronex, a specialist designer and manufacturer of GaN-based RF solutions.

  • Embedded computing solutions specialist VadaTech has the mobile backhaul systems market in its sights with the launch of a MicroTCA Carrier Hub product that boasts advanced clocking/synchronization capabilities vital for the delivery of time-stamped services such as voice. (See VadaTech Unveils New MicroTCA Carrier Hub.)

  • The IEEE Photonics Society announced a call for papers for the 2014 IEEE Photonics Conference to be held October 12-16 in San Diego, Calif. It's looking for original technical presentations in lasers, optoelectronics, optical fiber networks, and similar topics. Hurry, though, if you want to submit a paper, since the deadline is May 9.

  • Emcore Corp. (Nasdaq: EMKR), which develops optical technologies for all manner of broadband and video networks, unveiled the PB7220, a two-channel portable frequency domain terahertz spectrometer, which enables simultaneous phase coherent transmission and reflection measurements. A second channel allows a system to collect sample information at a variety of angles of reflection while continuing to monitor the transmission. The PB7220 series uses precisely tuned, fiber-coupled, semiconductor distributed feedback lasers and a highly advanced photo-mixing source for signal-to-noise ratios (SNR) of up to 70 dB/Hz across the scan range.

  • It's not every day that new R&D and manufacturing facilities are added, but that's exactly what components manufacturer Thorlabs Inc. is doing in Montreal as the company brings its global total of manufacturing sites to 13. The new facility, which will employ up to 40 staff, will develop and produce passive optical components specifically for medical imaging and advanced instrumentation in physical sciences. Thorlabs, which supplies a broad range of products to multiple vertical industries, including telecom, has expanded its business from its laser and electro-optics beginnings into semiconductor fabrication of Fabry-Perot, DFB, QCL, and VCSEL lasers, fiber towers for drawing glass optical fibers, MBE crystal growth machines, extensive glass and metal fabrication facilities, advanced thin film deposition capabilities, and more.

— Carolyn Mathas, contributing editor, special to Light Reading

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
DHagar
50%
50%
DHagar,
User Rank: Light Sabre
5/5/2014 | 10:10:22 PM
Bit Parts: Cisco Funding Up for Grabs
Exactly, @FakeMitchWagner, I believe that Cisco sees the IOT market as their next "frontier" where they can claim and rule that space.  

Carolyn's list of investments aligns with that point in that they are clearly driving the IOT market - which, as you point out, will increase the demand for networking.

I wonder if anyone will, or can, challenge them in the networking arena, while they are pursuing IOT?
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
5/5/2014 | 2:12:36 PM
Cisco go-go

Internet of Things is a major focus for Cisco as a whole, not just its investment arm. And why not? IoT will require huge amounts of networking. Likewise, storage requires networking to get data out where it's needed and back to storage, and analytics require networks to connect data. 

Cisco is in a similar position to Google — anything that increases usage of networks benefits the company, therefore the company can afford to put its fingers in a broad range of pies, some of them superficially unrelated to the core business. That's more obvious in Google's case: Robots? Self-driving cars?

Flash Poll
From The Founder
Anshul Sadana answers questions from Steve Saunders, Light Reading's founder and CEO, about Arista's CloudVision, a global cloud network controller for workload orchestration and workflow automation delivering a turnkey solution for cloud networking.
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
Video Exclusive With Basil Alwan, Alcatel-Lucent

7|24|15   |   26:44   |   (2) comments


Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
LRTV Custom TV
VDF: Enable the Financial With Mobile Money

7|20|15   |   06:53   |   (0) comments


Ian Ravenscroft discusses how operators can expand to occupy the entire digital services value chain through service innovation.
LRTV Custom TV
Telefónica on OSS Transformation

7|20|15   |   06:01   |   (0) comments


Jose Gonzales discusses the details of Telefónica's operation transformation program.
LRTV Custom TV
Judi Achmadi on Huawei's Cloud Storage Solution

7|20|15   |   03:33   |   (0) comments


Judi discusses the key business goals of TelekomSigma's public cloud service and how Huawei's solution helps them address challenges.
LRTV Custom TV
KPN Enlightening Digital Business & IT Transformation

7|20|15   |   06:19   |   (0) comments


Rob de Beer discusses the changes that operators need to make with service innovation now coming from the Internet world.
LRTV Custom TV
Stratus Telco-Grade Cloud Solutions & NFV

7|20|15   |   07:34   |   (0) comments


Ali Kafel from Stratus Technologies addresses high-availability concerns within the telco industry with a solution that enables telcos to provide high-availability and stateful fault-tolerance using a software-based approach.
LRTV Documentaries
The Six Million Dollar Business Man

7|20|15   |   01:52   |   (0) comments


Steve Saunders, publisher. A man barely alive after an acquisition malfunction imploded the company he founded. Gentlemen, we can rebuild Light Reading. Better, faster, stronger.
Between the CEOs
CEO Chat With Anukool Lakhina, Guavus

7|20|15   |   38:51   |   (1) comment


Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
LRTV Custom TV
IBM's Flash Storage With Intel QuickAssist

7|20|15   |   03:18   |   (0) comments


Intel's Bev Crair and IBM's Eric Herzog discuss how IBM's V9000 Flash Storage System has helped customers around the world. Featuring real-time compression powered by Intel QuickAssist Technology, the V9000 is a next-gen flash storage solution.
LRTV Huawei Video Resource Center
Thailand's AIS: Transforming to an FMC Operator

7|17|15   |   4:53   |   (0) comments


Saran Phaloprakarn, Senior VP of Fixed Broadband Business Management of Thailand's AIS, was a keynote speaker at the first Asia-Pacific Ultra Broadband Summit in Bangkok. In this video, he talks to Heavy Reading about transforming into an FMC (FBB+MBB+Content) operator.
LRTV Huawei Video Resource Center
Cambodia's TRC Discusses Its Plans for National Broadband

7|17|15   |   10:33   |   (0) comments


In this video, Chakyra Moa, Chairman of Telecommunication Regulator of Cambodia (TRC), talks in in-depth with Heavy Reading about the Cambodia's current telecom market and TRC's goals and expectations for the future.
LRTV Documentaries
5G Phone

7|16|15   |   2:09   |   (4) comments


A man has an opportunity to purchase the world's first working 5G phone. Imagine the possibilities...
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
December 1, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Network operators start seeing savings from NFV in the first year, according to a study by Affirmed Networks and ACG.
Hot Topics
T-Mobile Launches RCS Messaging
Sarah Thomas, Editorial Operations Director, 7/22/2015
Huawei Working Hard for Rural Success
Carol Wilson, Editor-at-large, 7/22/2015
AT&T U-verse TV Hits the Skids
Alan Breznick, Cable/Video Practice Leader, 7/24/2015
Eurobites: Alcatel-Lucent, Vodafone Test TWDM-PON
Paul Rainford, Assistant Editor, Europe, 7/22/2015
RJio to Launch Its Own 4G Devices Brand
Gagandeep Kaur, Contributing Editor, 7/27/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
Cats with Phones
Cat Sense Click Here
Can you hear me now?