Light Reading
What do Tellabs and Sycamore have in common? One less thing, as of Friday

Tellabs vs. Sycamore

Craig Matsumoto
Valley Wonk
Craig Matsumoto
2/1/2013
50%
50%

Here's a sobering outlook for Tellabs Inc.: "The mostly likely scenario appears to be a slow wind-down during which most of the cash is returned to shareholders," writes analyst Mike Genovese of MKM Partners, in a report issued Friday. In other words, he thinks Tellabs could go "gently into that good night." That's what he titled his report, anyway. Coincidentally, that's what Sycamore Networks Inc. did on Friday. Completing a plan laid out in October, Sycamore's shareholders voted to liquidate the company, minus the Intelligent Bandwidth Management business, which got sold to Marlin Equity Partners. (See Sycamore Prepares to Shut Down.) Both companies were optical high-fliers around the turn of the century that found themselves with lots of cash after the bubble peaked. What they've got in common is that neither managed to build a fully revived business from that bankroll. But Tellabs tried. Sycamore, by contrast, seemed to shore up for the long winter. Even in early 2005 -- eight years ago! -- we were talking about Sycamore possibly closing up shop. (See Will Sycamore Call It a Day? and Sycamore Being Sycamore.) Tellabs, meanwhile, acquired Advanced Fibre Communications (AFC) in 2004 for $1.5 billion to move into the access business, only to find out how unkind a business it is. By 2008, it was clear Tellabs needed another new direction. (See Tellabs Kills Its Verizon GPON Efforts and TLAB Shakeup Coming.) More recently, Tellabs had a couple of flops -- the SmartCore 9100 for mobile-network cores and the 9200 edge router, which the company discontinued on Thursday. (See Tellabs Axes Product, Cuts Jobs.) It's not the greatest highlight reel, but what does Sycamore have to show for the past several years? A story in The Wall Street Journal Friday notes Sycamore "distributed more than $750 million in special dividends over the past three years." Maybe that's nice math for shorter-term shareholders, but I think most of us would prefer to see a company identify and invest in evolutionary market strategies, much like Tellabs continues to do. — Craig Matsumoto, Managing Editor, Light Reading

(4)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
hoytaxtontrio
50%
50%
hoytaxtontrio,
User Rank: Light Beer
2/4/2013 | 9:48:41 PM
re: Tellabs vs. Sycamore
-áBrook,
Yes.-á As soon as I hit the send button, I thought of them.-á And I'm old enough to know better..-á :-)

I guess I should've clarified that and said within the last 50 years.-á The companies on your list (and you can include Alcatel, Siemens, etc.) are/were all big enough to sustain true in house R&D that includes basic research (PARC, Thomas Watson Research, Bell labs).-á Intel is the best example in that they made their initial fame in memory and then morphed to processors when memory was commodotized by the Japanese.

Hoyt
brookseven
50%
50%
brookseven,
User Rank: Light Sabre
2/4/2013 | 5:32:30 PM
re: Tellabs vs. Sycamore
hoy,

How about....Xerox, IBM, AT&T, HP, Intel as examples off the top of my head.

seven
hoytaxtontrio
50%
50%
hoytaxtontrio,
User Rank: Light Beer
2/4/2013 | 4:38:43 PM
re: Tellabs vs. Sycamore
-áI'm hard pressed to think of a company founded on innovation that went beyond it's first trick by truly innovating again organically.-á Apple is about the only one I can think of and now with Jobs gone, will they be able to do it again?
Vishnu Goel
50%
50%
Vishnu Goel,
User Rank: Light Beer
2/4/2013 | 3:04:28 PM
re: Tellabs vs. Sycamore
It is really surprising that Sycamore,knowing its promoters background and roots in innovation should just get into sunset with dividends payout.The hey days of Optical boom and later developments in Optical market made this good company exiting the scene! Lets see if Tellabs reinvents itself and create new Network niche to stay in the reckoning? Vishnu Goel T&M +919810101238
Educational Resources
sponsor supplied content
Educational Resources Archive
More Blogs from Valley Wonk
Comcast joins Google in asking for a flexible-rate optical standard, rather than 400G or terabit, but that's easier said than done
Cisco, Juniper and other more traditional Interop speakers might get overshadowed by the forces of virtualization
The Open Networking Summit has climbed the hype curve, but the conference should cling to its roots as a techie discussion forum for software-defined networking
The coalition's chairman says all these companies plan to further the SDN cause and don't have a 'nefarious' angle
Big vendors are reportedly banding together to unify SDN's approach but is it more about steering the conversation?
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 Huawei Video Resource Center
Interview With Rick Talbot, Principal Analyst, Current Analysis

10|31|14   |   2:12   |   (0) comments


At the NFV Open Cloud Forum 2014, Rick Talbot shared his positive feedback about the holistic and open approach that Huawei adopts for SDN and NFV. He also found the open sharing at the event valuable as it features different perspectives from Huawei experts, telecom operators, industry analysts as well as security experts.
LRTV Huawei Video Resource Center
Interview With David Snow, Principal Analyst, Current Analysis

10|31|14   |   2:24   |   (0) comments


David Snow talked about his understanding of Huawei and its SoftCOM strategy at the NFV Open Cloud Forum 2014, saying that Huawei's wide approach combining IT and CT expertise, introducing big data and analytics into solutions and contributing to the OpenStack community particularly resonate with him and make the company stand out in the industry.
LRTV Huawei Video Resource Center
Interview With Roz Roseboro, Senior Analyst, Heavy Reading

10|31|14   |   3:13   |   (0) comments


Roz Roseboro commented on Huawei's data center capabilities and NFV solutions at the NFV Open Cloud Forum 2014, saying that in addition to covering all three key domains of compute, storage and networking, the company also emphasizes the importance of management capabilities and professional services, which are essential in making NFV a reality.
LRTV Huawei Video Resource Center
Interview With Michael Howard, Co-founder & Principal Analyst, Infonetics Research

10|31|14   |   5:25   |   (0) comments


Michael Howard talked about SDN, NFV, and OpenStack adoption at Huawei's NFV Open Cloud Forum 2014. Particularly, he pointed out that Virtual Enterprise CPE is the top NFV use case that operators plan to invest in over 2014 and 2015 to deliver new enterprise services through virtualized functions.
LRTV Huawei Video Resource Center
Interview With Jerry Caron, Senior Vice President, Current Analysis

10|31|14   |   3:11   |   (0) comments


At Huawei's NFV Open Cloud Forum 2014, Jerry Caron from Current Analysis said that orchestration and management are key to realizing SDN and NFV for global carriers, and the approach that Huawei is taking, with its FusionSphere Cloud OS at the core, is in the right direction to address the challenges.
LRTV Documentaries
Broadband Battles

10|31|14   |   01:39   |   (0) comments


This year's Broadband World Forum featured a number of show floor battles focused on access gear, components and coffee.
Jonestown
Mobile Backhaul: Going to the Dark Side?

10|30|14   |   2:26   |   (1) comment


Heavy Reading's Patrick Donegan shares his view on a dark trend that bubbled up at Light Reading's annual backhaul conference in NYC.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With CEO of SwitchCom

10|30|14   |   4:13   |   (0) comments


SwitchCom, an IT company based in Angola, recommends a variety of Huawei solutions and hardware to their customers in the energy industry.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Ethiopia's Ministry of Water Irrigation & Energy

10|30|14   |   4:08   |   (0) comments


Gosaye Mengistie of Ethiopia's Ministry of Water Irrigation & Energy discusses the collaboration with Huawei in that country.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Dongfang Electronics Corporation

10|30|14   |   5:46   |   (0) comments


Dongfang Electronics Corporation, headquartered in Chengdu, China, is one of China's largest manufacturers of power generators and contractors of power station projects.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Zimbabwe's Customers

10|30|14   |   3:31   |   (0) comments


Representatives of Zimbabwe's Ministry of Power and Development discuss the energy needs of their country as well as new areas of improvement due to enhanced ICT capabilities.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Colbún Chile

10|30|14   |   4:29   |   (0) comments


In Chile, an aging energy infrastructure was in dire need of a modern update. Claudio Valenzuela of Colbún discusses how Huawei's ICT solutions continue to provide crucial information to improve the grid and how an in-country engineer is a cricial asset.
Upcoming Live Events
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
May 6, 2015, McCormick Convention Center, Chicago, IL
May 30, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Microsoft's Skype Embraces WebRTC on IE
Sarah Reedy, Senior Editor, 10/27/2014
FTC Slaps AT&T With Throttling Lawsuit
Sarah Reedy, Senior Editor, 10/28/2014
Wheeler Gets Down With OTT
Mari Silbey, Independent Technology Editor, 10/29/2014
China's MVNOs Hit the Wall
Robert Clark, 10/27/2014
Let's Not Kill SDN & NFV With Silos
Francois Locoh-Donou, Senior VP, Global Products Group, Ciena, 10/28/2014
Like Us on Facebook
Twitter Feed